United States based investment bank and financial service provider JPMorgan & Chase Co. (JPM) announced that it will be acquiring a majority stake in the payment business of leading car manufacturer Volkswagen Group AG (ETR: VOW3).
Volkswagen is set to roll out the payment business later in the year as Volkswagen Payments SA. The payment business is an in-car technology which allows drivers to automatically pay for fuels or trolls.
According to regulatory filing documents, JPMorgan has agreed to buy up to 75% Volkswagen Payments SA for an amount which is yet to be revealed. This acquisition deal is however subject to various regulatory approvals.
The payment business was unveiled back in 2017 and operates across 32 countries. The platform offers car purchase and leasing, subscription fees like in-car entertainment and insurance, fueling and electric vehicle charging and in-vehicle payments.
According to JPMorgan’s EMEA head of wholesale payments, Shahrokh Moinian, the bank is planning to invest in and rebrand the payment business and expand its mobility focused payments to other sectors.