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JPMorgan to Acquire 75% Stake in Volkswagen’s Payments Platform — Report
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JPMorgan to Acquire 75% Stake in Volkswagen’s Payments Platform — Report

New York-based financial and investment banking services provider JPMorgan Chase & Co. (JPM) has agreed to acquire a 75% stake in Volkswagen AG’s (VWAGY) payments platform that is operated by Volkswagen Payments SA, according to a report published by StreetInsider.com.

With this acquisition, JPMorgan aims to extend access to the wider car industry and expand its digital payment capabilities. (See JPMorgan stock chart on TipRanks)

The EMEA Head of Wholesale Payments at JPMorgan, Shahrokh Moinian, 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.”

After the completion of the acquisition, Volkswagen will continue to remain a shareholder in Volkswagen Payments and make use of the platform for payments across its network.

Two months ago, BMO Capital analyst James Fotheringham maintained a Hold rating on the stock and raised the price target to $141 from $136 (11% downside potential). The analyst continues to be cautious on JPMorgan shares despite expecting re-leveraging benefits starting 2022.

Overall, the stock has a Moderate Buy consensus rating based on 8 Buys, 4 Holds and 1 Sell. The average JPMorgan Chase & Co. price target of $172.75 implies 9% upside potential. Shares of the company have gained 57.1% over the past year.

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