JPMorgan (NYSE: JPM) revealed Wednesday that it is set to acquire a majority stake, approximately 75%, in Volkswagen’s payments business. The move comes ahead of a scheduled rollout of in-car technology which permits drivers to automatically pay for fuel or tolls.
The two companies plan to eventually expand Volkswagen’s platform to service markets outside of the auto industry, according to JPMorgan.
“We plan to build on Volkswagen Financial Services’ innovative groundwork on the existing platform and apply the global scale of our payments expertise to meet evolving customer expectations in the auto space and beyond,” said Shahrokh Moinian, EMEA head of wholesale payments at JPMorgan, in a statement.
Volkswagen’s financial services department will preserve a 25.1% stake in the payments business, JPMorgan said. The agreement is anticipated to close within the first half of 2022.
Volkswagen has been transitioning into the digital payments industry for some time, with the first payments arm established in Luxembourg in 2017. The company’s platform allows customers to buy and lease vehicles as well as pay for parking tickets, EV charging and more.
“One of the fastest-growing platforms is the connected car marketplace, whereby the car acts like a wallet for purchasing goods, services or subscriptions,” Shahrokh Moinian, EMEA head of wholesale payments at JPMorgan, told Reuters.
Financial details regarding the matter have yet to be disclosed.