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.