JPMorgan Chase has decided to shut down its VW Pay division, formally known as the J.P. Morgan Mobility Payments Solution. The Luxembourg-based unit struggled to achieve profitability in the once-promising field of automotive payments, which enables customers to make digital payments for fuel, parking, and other internet-connected services.
JPMorgan will continue providing mobility services to its existing customers, but the operation will be folded into other divisions. The business was founded by Volkswagen in 2017 and acquired by JPMorgan four years later.
Customers Hard to Find
At the time, JPMorgan saw an opportunity in in-car payments and expected the segment to take off. But the market never fully developed—largely because additional automakers and parts manufacturers, beyond VW, would have needed to integrate closely with Mobile Payments Solutions.
“When Volkswagen started this division to explore in-car payments, JPMorgan jumped in and bought it as a strategic investment they wanted to scale,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “The idea is that cars could be equipped with payment transponders and could automatically make purchases at gas pumps, charging stations, and drive-thrus. The tech was there, but making it usable required a ton of integration work with the providers who the car companies would buy from. So you have a long strategic cycle, but what killed it was the revenue model, or more specifically the lack of one.”
Losses Pile Up
Volkswagen Group and its associated brands remained the primary customers, though it onboarded eight merchant clients last year. Despite that progress, the unit posted a €28.8 million loss in 2024.
“JPMorgan invested heavily in the development and integration, but how do they make money on it?” Apgar said. “Automakers could charge for the hardware as part of an option package. But in terms of ongoing revenue, initial thoughts were that consumers may pay a fee for the convenience of embedding payments within their car.”
Another setback was the pandemic, which accelerated the adoption of contactless payment options, reducing the need for in-car payment solutions.
“I go back to the old adage,” Apgar said. “Not everything that can be built should be built.”
