By Giulia Petroni

JPMorgan Chase & Co. said Wednesday that it plans to acquire a controlling interest of close to 75% in Volkswagen AG's payment business for an undisclosed sum.

The U.S. investment bank said it has entered into a strategic deal with Volkswagen Financial Services with the aim of expanding its digital-payment capabilities to the broader automotive industry.

"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," it said.

Volkswagen's payments platform, which is operated by Volkswagen Payments SA, offers a number of digital-payments services ranging from purchase and leasing to fuelling and parking across 32 markets worldwide.

If the acquisition goes through, Volkswagen Financial Services is set to remain a shareholder in the platform and Volkswagen Payments will continue to be based in Luxembourg.

The deal, which is subject to regulatory approvals, is expected to close in the first half of 2022, according to JPMorgan.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

September 08, 2021 05:40 ET (09:40 GMT)

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