(Bloomberg) -- JPMorgan Chase & Co. is buying a majority stake in Volkswagen AG's payments platform, extending its services further into the auto industry.
The U.S. bank said it will acquire close to 75% of Volkswagen Payments SA in a statement Wednesday. It plans to work with the car manufacturer to develop the platform for new markets that could use internet-connected vehicles as a way to pay.
Volkswagen Payments was launched in 2017 and operates in 32 countries. It offers customers the option to use digital payments for car purchases, fuel, parking and other services. The business will continue to be based in Luxembourg and facilitate payments for Volkswagen's brands globally.
“Auto payments encapsulate many of the characteristics of the wallet of the future,” said Max Neukirchen, global head of merchant services at JPMorgan.
The bank did not disclose financial terms for the deal, which is expected to close in the first half of 2022. JPMorgan has auto financing partnerships with manufacturers including Jaguar Land Rover and Subaru.
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