JP Morgan acquires majority ownership in Volkswagen’s payments business
As the auto industry has been making a shift towards electric mobility, the commercial payment industry is sensing an opportunity in terms of charging infrastructure and its related activities, making a slow shift from traditional fuel cards.
This week, JP Morgan made an announcement that the company has entered into a strategic deal with carmaker Volkswagen, and has acquired 75% of ownership in its payments platform, which is operated by Volkswagen Payments S.A.
As per the press release, with this acquisition, JP Morgan would be able to expand its ‘digital payment capabilities and see the platform extended and accessible to the broader auto industry for the first time’. Over time, the alliance between JP Morgan and Volkswagen would seek to develop the platform for new markets and industries outside of the automotive sector where mobility payments would be at the central.
“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 J.P. Morgan.
Last month, Federal Trade Commission sued Fleetcor for its dishonest practices.
Volkswagen Payments S.A was founded back in 2017 in Luxembourg and operates a payments platform that is designed for the auto industry. It operates in 32 global markets and the business offers digital payments services across the auto ecosystem which includes initial purchase and leasing, in-vehicle payments, fuelling and electric vehicle charging, parking and subscription-based services such as insurance and in-vehicle entertainment.
JP Morgan said this acquisition is a “natural fit for J.P. Morgan’s Wholesale Payments business” as it operates in corporate treasury services, trade finance, card and merchant services capabilities and provides integrated payments experience to end users.