Banking News

JPMorgan Enters Connected Car Marketplace

JPMorgan Enters Connected Car Marketplace

(9 September 2021 – Global) JPMorgan has announced plans to purchase a majority stake in Volkswagen's payments business, Reuters UK revealed today.

Founded in 2017, Volkswagen's Luxembourg-based business operates in 32 countries - offering car purchase and leasing, in-vehicle payments, fuelling and electric vehicle charging and subscription services, as well as insurance and in-vehicle entertainment.

Subject to regulatory approvals, JPMorgan has agreed to purchase 75 percent of the business - which it plans to invest in and rebrand - for an undisclosed amount. The deal is expected to close during H1 2022.

Shahrokh Moinian, EMEA head of wholesale payments at JPMorgan, said to Reuters: "One of the fastest-growing platforms is the connected car marketplace, whereby the car acts like a wallet for purchasing goods, services or subscriptions.".

In July, Volkswagen revealed that sales at its financial services arm had reached €22.6 billion - up 18 percent year-on-year.

This news comes amidst a planned rollout of in-car technology that allows drivers to automatically pay for fuel or tolls.

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