JPMorgan Forays Lucrative Digital Payments Sector Via Acquisition Route

JPMorgan Chase & Co JPM inked an agreement to acquire a controlling interest of close to 75% in Volkswagen AG's VLKAF VWAGY payments platform, Volkswagen Financial Services, operated by the Volkswagen Payments S.A.
The financial terms of the transaction remain undisclosed. The deal is likely to close in the first half of 2022.
Volkswagen Payments S.A. operates a payments platform designed for the auto industry offering digital payments services including initial purchase and leasing, in-vehicle payments, fueling, and electric vehicle charging.
The deal would help JPMorgan expand its digital payment capabilities and foray into the attractive automotive industry, CNBC reports.
Related: PayPal Holdings Inc PYPL will acquire Japanese payments company Paidy for $2.7 billion to boost its presence in the "buy now, pay later" market.
Price Action: JPM shares closed lower by 0.18% at $159.21 on Tuesday.