WePay, a US-based payment processing service backed by e-commerce company Rakuten, is set to be acquired by financial services firm JPMorgan Chase for an undisclosed sum.
Although the purchase price was not disclosed by the company, a source told Axios it was “just south of $300m” in cash.
Founded in 2008, WePay has created a software platform that allows online retailers to accept payments from consumers without having to worry about setting up a secure infrastructure themselves.
The acquisition is subject to approval and customary closing conditions, and WePay’s staff will join Chase’s payments innovation incubator following the deal’s close.
Chase hopes to integrate WePay’s platform into its own product suite, in an effort to offer a simple way for app developers and independent software vendors to include payment processing into software commonly used by small businesses.
WePay raised a total of $75m in equity funding, most recently closing a $40m series D round in 2015 led by VC firm FTV Capital that included Rakuten, Highland Capital Partners, August Capital, Continental Investors and Ignition Partners.
The company’s shareholder list also features angel investors including Phil Purcell, Max Levchin, Maynard Webb and Raymond Tonsing.
Bill Clerico, founder and chief executive of WePay, said: “Being part of the Chase family – with its global capabilities, brand and scale – will help us better support our growing list of platform partners and the businesses they serve.
“We are excited to marry the distribution of one of the world’s largest and most respected financial institutions with the best technology and talent in Silicon Valley.”
– This article was amended on October 19 to reflect new information concerning the acquisition price.