An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
J.P. Morgan to Take Majority Ownership of Volkswagen Payments Business
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary
J.P. Morgan has entered a strategic deal to acquire a controlling interest of approximately 75% in Volkswagen Payments S.A., pending regulatory approval. This partnership aims to enhance J.P. Morgan's payment capabilities and make the platform accessible to the broader automotive industry. The initiative will focus on developing customized payment solutions for Volkswagen Group brands globally and expanding into new markets. The deal, predicted to close in the first half of 2022, aligns with the growing demand for seamless digital payment experiences in the auto sector.
Positive
Acquisition of 75% interest in Volkswagen Payments S.A. expands J.P. Morgan's digital payment capabilities.
Partnership facilitates customized payment solutions for the entire Volkswagen Group globally.
Anticipated growth in global mobility-focused payments, with significant opportunities in the auto industry.
Negative
Regulatory approvals needed could delay the acquisition process.
Challenges in scaling the payments platform beyond the automotive sector may arise.
Strategic deal to open the venture up to the broader automotive industry and other use cases
J.P. Morgan to invest in the payment platform over the long term, and apply the global scale of its payments capabilities
Volkswagen Financial Services and J.P. Morgan to continue building customized payment solutions for the entire Volkswagen Group in Europe and expand globally
LONDON--(BUSINESS WIRE)--
J.P. Morgan announces today that it has entered into a strategic deal with Volkswagen Financial Services, with plans to acquire a controlling interest of close to 75% in the car manufacturer’s payments platform, operated by Volkswagen Payments S.A., subject to regulatory approvals.
The deal will expand the bank’s digital payment capabilities and see the platform extended and accessible to the broader auto industry for the first time. Over time, the alliance between the two firms will seek to develop the platform for new markets and industries outside of the automotive sector where mobility-focused payments will become central. Volkswagen Financial Services will remain a shareholder and the platform will continue to facilitate payments across the Volkswagen network in support of all Volkswagen Group brands globally.
Founded in 2017 in Luxembourg, Volkswagen Payments S.A. operates a leading payments platform designed for the auto industry. Operating in 32 markets around the world, the business offers a range of digital payments services across the auto ecosystem including: initial purchase and leasing, in-vehicle payments, fuelling and electric vehicle charging, parking and subscription-based services such as insurance and in-vehicle entertainment. It focuses on digitally connecting the auto ecosystem and improving the payments experience for consumers, distributors and suppliers alike.
The platform is a natural fit for J.P. Morgan’s Wholesale Payments business – which combines corporate treasury services, trade finance, card and merchant services capabilities – and delivers an integrated payments experience to end users across the economy. Volkswagen Payments S.A. will continue to be based in Luxembourg, also one of J.P. Morgan’s key European locations and where it has a proud history of supporting clients for more than 45 years.
The deal comes at a time when customers expect a seamless digital payments experience, regardless of industry or sector. The auto industry is increasingly focused on this area and there is significant opportunity for global growth, with in-car payments alone predicted to reach $4bn in 20211. J.P. Morgan expects that the connected vehicle, the digital payments experience and customized payment services, will all become core features of business models in the future.
Shahrokh Moinian, EMEA Head of Wholesale Payments at J.P. Morgan, said: “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.”
“Auto payments encapsulate many of the characteristics of the wallet of the future more generally,” added Max Neukirchen, Global Head of Merchant Services at J.P. Morgan. “Partnering with a leader in the field gives us a great opportunity to be at the heart of that.”
Dr. Christian Dahlheim, Head of Volkswagen Group Sales,emphasized: “With its many years of banking experience and global market presence, J.P. Morgan is the ideal partner for Volkswagen Payments S.A. to implement the requirements of the Volkswagen Group's brands for customized automotive payment solutions worldwide.”
Dr. Mario Daberkow, CIO of Volkswagen Financial Services AG, added: “We are proud of the successful setup and operation of Volkswagen Payments S.A. and, as a strong shareholder, we will ensure that it continues to support the Volkswagen Group and its brands with tailor-made and innovative solutions and services in the field of digital payments.”
The deal is expected to close in the first half of 2022, at which point the two companies will build out their joint operating model – including branding of the initiative – with a strategy to open to other companies across the auto industry.
About J.P. Morgan’s Corporate & Investment Bank
J.P. Morgan’s Corporate & Investment Bank is a global leader across banking, markets and securities services. The world’s most important corporations, governments and institutions entrust us with their business in more than 100 countries. With $32.1 trillion of assets under custody and $722 billion in deposits, the Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world. Further information about J.P. Morgan is available at www.jpmorgan.com.
What is the deal between JPM and Volkswagen Payments S.A.?
J.P. Morgan has agreed to acquire a controlling interest of 75% in Volkswagen Payments S.A., aiming to enhance its digital payment capabilities.
When is the expected closing date for the JPM and Volkswagen Payments deal?
The deal is expected to close in the first half of 2022, subject to regulatory approvals.
How will the deal benefit JPM shareholders?
The acquisition will expand J.P. Morgan's presence in the automotive payment sector, potentially increasing market share and revenue.
What are the future plans for Volkswagen Payments S.A.?
Volkswagen Payments S.A. will continue to develop customized payment solutions for the Volkswagen Group and explore new markets.
What is the significance of this strategic deal for the automotive payments industry?
The deal positions J.P. Morgan to leverage its expertise in digital payments, addressing the growing demand for seamless payment solutions in the automotive sector.
