Benzinga | Sep 8, 2021 07:58AM EDT

JPMorgan Forays Lucrative Digital Payments Sector Via Acquisition Route

* JPMorgan Chase & Co (NYSE:JPM) inked an agreement to acquire a controlling interest of close to 75% in Volkswagen AG's (OTC:VLKAF) (OTC: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 (NASDAQ: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.