JP Morgan and Viva Wallet reportedly collide over board appointments
JP Morgan’s relationship with European paytech Viva Wallet has reportedly hit a rocky patch, with two of the three directors nominated by the banking giant to sit on the company’s board resigning over the last few months.
Friction has been reported in JP Morgan’s relationship with Viva Wallet
JP Morgan made headlines in December 2022 when it closed a deal to acquire a 48.5% stake in Viva Wallet for $800 million as part of CEO Jamie Dimon’s intended push into Europe’s red-hot payments market.
However, a recent report by The Information suggests that tension is now rising between the two companies.
As per the report and the paytech’s latest Companies House filings, Jessica Marlborough and James Crotty resigned from their positions on Viva Wallet’s five-member board on 24 October and 9 November respectively, having previously been hand-picked by JP Morgan.
The Information reports that instead of adhering to the bank’s recommended replacements, Viva Wallet founder and CEO Haris Karonis has instead chosen to instate the paytech’s chief financial officer (CFO) and one of its former investors in their place. It says that there was also a proposal to oust the final JP Morgan representative, but that the move was later dropped at a shareholder meeting.
Reports suggest that the friction may be tied to JP Morgan’s decision not to grant Viva Wallet’s request for a $100 million loan, while the company has also reportedly blamed JP Morgan for slowing down the implementation of its business plans in recent filings.
Speaking on the resignation of both Marlborough and Crotty, a JP Morgan spokesperson told FinTech Futures that the pair had brought “thorough and professional oversight” to the Viva Wallet board, and that it continues to work with the paytech “in line with the original shareholder agreement”.
The spokesperson says that the bank has “already nominated successors to the board to ensure on-going good governance, to fulfil on our regulatory obligations, and to support the company in its growth objectives”.
A spokesperson for Viva Wallet tells FinTech Futures that the company “is continuously engaging with its shareholders in a constructive dialogue, for all company matters”, adding that it “works closely with JP Morgan and We Realize for any changes regarding the BoD [board of directors] members as well”.
“The aforementioned members of the BoD have resigned and were therefore replaced. All members of the BoD, including those that replaced the resigned ones, have been approved by both shareholders and the company’s competent supervisory authorities, following a thorough Fit & Proper process, and in accordance with corporate governance principles,” the spokesperson says.
“The topic of the BoD members is an ongoing part of the agenda of the upcoming scheduled General Assemblies. Such processes adhere to specific regulatory obligations, and can commonly take time to complete.”
