JPMorgan has bought a 75% stake in German car giant Volkswagen’s payments business, the second acquisition by the US bank in Europe in the past four months.
The bank said that it had struck a deal with Volkswagen Financial Services to take a controlling 75% stake in its payments platform, and has plans to expand the unit into other industries following the acquisition.
JPMorgan’s wholesale payments business includes corporate treasury services and trade finance, sitting within its vast corporate and investment bank. While the US banking giant is better known for its dominant investment bank, its chief executive of corporate and investment banking, Daniel Pinto, told Financial News last year that payments were a key focus of growth for the unit.
Volkswagen Payments S.A. is based in Luxembourg, but operates in 32 markets globally, offering services such as initial purchase and leasing, in-vehicle payments.
Shahrokh Moinian, head of wholesale payments for Europe, the Middle East and Africa at JPMorgan, 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.”
JPMorgan’s latest European acquisition follows the purchase of UK digital wealth manager Nutmeg in a deal worth less than £1bn in June. The US bank is also launching a retail challenger bank in the UK to rival the likes of Monzo and Starling Bank.
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