JPMorgan Struck A Deal VW

JPMorgan ($JPM@US) has struck a deal to buy a majority stake in the payments business of German car giant Volkswagen ($VWAGY@Germany) ahead of a planned rollout of in-car technology that allows drivers to pay for fuel or tolls automatically. The U.S. bank has agreed to buy close to 75% of the Volkswagen Payments S.A. business — which was founded in 2017 and operates across 32 countries —- for an undisclosed sum, subject to regulatory approvals. It offers car purchase and leasing, in-vehicle payments, fueling and electric vehicle charging, and subscription services such as insurance and in-vehicle entertainment. The business supports vehicles functioning, in essence, like wallets to purchase goods, services, or subscriptions. JPMorgan said it plans to invest in and rebrand the payments business and expand its mobility-focused payments to other industries. Non-finance companies, including car manufacturers, have stepped up expansion into financial services in recent years. Volkswagen Group did not provide a breakdown of earnings for the payments business in its half-year results in July but said sales at its financial services arm were $26.77 billion, up 18% on the prior year.