JPMorgan takes minority stake in Global Pay-Ex

JPMorgan has made its first equity investment in a homegrown fintech company, as part of a broader plan to build comprehensive payments support and supply-chain finance management infrastructure for their India-based corporate client-base.

With this undisclosed investment, the American multinational investment bank has acquired a minority stake in B2B payments fintech Global Pay-Ex. The fintech, which primarily provides digital invoice management services, would provide JPMorgan with technology support to manage the payment-information services of their corporate customers in a “timely and efficient manner.”

“This fintech primarily provides solutions in B2B space for our corporate clients who have challenges around domestic receivables,” Guhaprasath Rajagopal, executive director and head, treasury services, JPMorgan, told ET “For a corporate, there are a variety of channels from where money can come in, but information doesn’t always come with funds…with this partnership JPMorgan will now be able to provide both payment and information in a clean way.” 

The bank said that such solutions can help corporates adopt electronic-based interoperable payment solutions such as NEFT, RTGS and IMPS as it would rid these companies the additional effort and cost on processing trade finance payments in India where the fund movement may be complex and irregular rendering it much harder to monitor. 

The Indian fintech investment plan for the bank is in-line with their strategy in global markets such US and Europe where they partner with nimble technology companies for product-based solutions while also providing space for startups to grow through incubation labs. 

The lender said that in India they will be primarily looking to solve the problems where a bank-customer relationship, especially in the corporate space, might be hindered due to “information asymmetry.”

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