JPMorgan to Wind Down Mobility Payments Unit After Profitability Review
JPMorgan is shutting down the Mobility Payments Solution unit it acquired from Volkswagen in 2021, following a determination that the business cannot reach sustainable profitability, according to reports.
The division, originally launched by Volkswagen in 2017 and headquartered in Luxembourg, operated across 32 countries. Its services spanned vehicle purchases and leasing, in-car payments, fuel and EV charging transactions, subscription services, insurance, and in-vehicle entertainment — all elements of the emerging “connected car” payments ecosystem.
JPMorgan purchased a 75% stake in the business with the expectation that in-vehicle payments would evolve into a major growth segment as automakers expanded digital services and mobility platforms. The acquisition was positioned as a strategic play to integrate banking, payments, and automotive technology at scale.
However, after a multi-year evaluation, JPMorgan has now concluded that the business model is unlikely to generate profit. As a result, the bank is closing the unit, resulting in 33 job losses in Luxembourg, according to the report.
The decision comes at a time when many financial institutions and tech companies are reassessing mobility and IoT-focused payments ventures amid slower-than-expected adoption and ongoing economic pressure on OEM-led digital ecosystems.
What This Means for the Automotive Payments Sector and the Broader Market JPMorgan’s decision to shut down its Mobility Payments Solution unit is a significant signal for the automotive payments industry — a sector once projected to be one of the fastest-growing frontiers in fintech. The bank’s retreat suggests that the in-vehicle payments ecosystem is evolving more slowly than many early adopters anticipated. While car manufacturers continue to embed digital features such as subscriptions, in-car commerce, insurance integrations, and EV charging payments, the commercial viability of these ecosystems remains uncertain. Consumer adoption has lagged expectations, regulatory standards vary across markets, and automakers continue to face margin pressures and software-integration challenges. These hurdles make it difficult for third-party fintech and banking players to scale mobility payments profitably. For automakers, JPMorgan’s exit also underscores the need to reassess partnership models. Many OEMs envisioned a future where vehicles acted as autonomous payment devices, but the infrastructure, interoperability, and user demand required to support that vision have not yet matured. On the broader fintech landscape, this move reflects a larger trend: major institutions pulling back from experimental verticals that do not demonstrate immediate or near-term profitability. With economic pressure pushing companies toward efficiency, fintechs and banks alike are re-evaluating niche product lines, mobility tech investments, and connected-device payment strategies. Still, this does not mark the end of in-vehicle payments — rather, it is a recalibration. The sector may grow, but more slowly and with deeper collaboration required between automakers, payments companies, telcos, and software platforms. The winners will likely be firms that can integrate payments seamlessly into vehicle software ecosystems while managing cost, compliance, and user experience at scale.