LONDON (UK) – JPMorgan Chase & Co said on Thursday that it has made a strategic investment in UK-based Icon Solutions, which advises and provides technology to banks to enable them to revamp their digital payments systems.
However, the financial terms of the deal have not been disclosed.
The funding will be used by Icon to expand their business and geographical reach, said Simon Wilson, co-head of global payments solutions at the firm.
This comes in the wake of a global spurt in digital payment volumes because of the pandemic, which has made commerce and business flow online.
The effect of the pandemic has increased the cost pressure on banks as they are more keen to digitise their services to save cash.
Banks and payment firms are facing stiff competition from younger and more tech-savvy firms.
“The banks are having to find ways of cutting costs, but with the competition out there they can’t afford to just slash and burn,” Wilson said. “They are forced to look at innovative ways to do things. It’s simply not sustainable to remain on the cost base with the old technology they have.”
Icon counts as its clients HSBC Holdings Plc, Wells Fargo & Co and Citigroup Inc.
Sara Castelhano, Europe, Middle East and Africa head of payments, digital and solutions at JPMorgan wholesale payments, will be part of Icon’s board of advisors, said the two firms.