The car manufacturer’s payments platform, which is designed for the auto industry, operates in 32 markets around the world


Wolfsburg, Lower Saxony, headquarters of Volkswagen AG. (Credit: Vanellus Foto/Wikipedia)

US-based financial services company JP Morgan has signed a deal with Volkswagen Financial Services to acquire a 75% stake in Volkswagen Payments.

The stake acquisition in the car manufacturer’s payments business is expected to enable the bank to expand its digital payment capabilities.

In addition, the deal will result in making the platform available to the broader auto industry for the first time, according to JP Morgan.

Founded in 2017 in Luxembourg, Volkswagen Payments operates the payments platform in 32 markets around the world.

The platform is designed to connect the auto ecosystem and enhance the payment experience for consumers, distributors and suppliers.

The digital payments services offered by the platform include initial purchase and leasing, in-vehicle payments, fuelling and electric vehicle charging, parking and subscription-based services such as insurance and in-vehicle entertainment.

Upon completion of the transaction, Volkswagen Payments will continue to be based in Luxembourg, which is also one of the key European locations of JP Morgan.

Volkswagen Financial Services will remain a shareholder in the payments business.

The platform will continue to provide payments across the Volkswagen network in support of all Volkswagen Group brands globally.

The acquisition is said to be a natural fit for JP Morgan’s wholesale payments business that offers an integrated payments experience to end-users, by combining corporate treasury services, trade finance, card and merchant services capabilities.

J.P. Morgan EMEA wholesale payments head Shahrokh Moinian 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.”

The transaction is expected to be completed in the first half of next year, subject to regulatory approvals.

JP Morgan and Volkswagen Payments intend to develop a joint operating model incorporating a strategy to open to other companies across the auto industry.

The two companies are also expected to further develop the payments platform for new markets and industries outside of the automotive sector.

Volkswagen Group sales head Christian Dahlheim said: “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.”