Of Costa Ketsietzis
JP Morgan CEO Jamie Dimon has made his strategy clear over the years: The only way for the US banking giant to cope with growing competition from ever-growing fintech companies is to invest in companies that develop innovative technologies. especially in the field of electronic payments and investment services.
In fact, a year ago, the CEO of JP Morgan had made an open call for possible acquisition targets. “If you have a brilliant idea, get on the phone. Even a competing investment bank can bring us a good idea and get its commission,” Dimon said at an investment conference in December 2020.
Since then, JP Morgan has invested more than 30 times in companies developing innovative applications and digital banks.
This trend is expected to continue in 2022 with JP Morgan’s management having budgeted about $ 12 billion for technology investments.
The first stop of this investment barrage for this year is Greece and Viva Wallet. With the acquisition of 49% of Viva Wallet that was officially announced yesterday, JP Morgan gains significant access to Europe, as Viva Wallet has a presence in 23 European countries.
But apart from the banking license (acquired by Viva in 2020 with the acquisition of Praxia) and the payment institution licenses it has, one of the strongest Viva Wallet papers is the technology it has developed on electronic payments.
Being a fully digital neobank with its infrastructure exclusively in the cloud and with applications such as “tap on phone” that turns android phones into trading machines, Viva Wallet remains at the core of a technology company in the field of financial services.
Moreover, even before JP Morgan’s investment, the Greek company had undertaken a major project to implement the technological solutions it has developed on electronic payments at JP Morgan’s special subsidiary, Chase Payment Solutions.
The next steps
JP Morgan acquires the shares held by the Hedosophia fund, the Latsis family office and Deca Investments. As part of the agreement concluded with a valuation of more than 1.5 billion euros for Viva Wallet, the American investment bank will undertake the bond lending that Viva had closed at the beginning of 2020 from Tencent – EBRD-Breyer Capital, while it will finance the further development of Viva Wallet with an additional € 200 million.
About 51% of Viva remains with the founders Haris Karonis and Makis Antipas, who also retain the management although JP Morgan will control two positions on the board.
More information on immediate future plans is expected in the coming months. However, for today, a first acquaintance of Viva executives and employees with the leading team of JP Morgan is planned.
An important result of the agreement is the activation of stock options for about 200 Viva Wallet employees who will receive a total reward of $ 50 million, as well as the right to participate in another round of stock options for shares of the company of total value. also $ 50 million.
– The agreement for the acquisition of 49% of Viva Wallet by JPMorgan was closed
Source From: Capital
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