JPMorgan to Shut Mobility Payment Platform Amid Profitability Concerns

JPMorgan JPM has decided to close its Mobility Payments Solution platform, VW Pay, which it acquired from Volkswagen AG in 2021, due to concerns over profitability. This was reported by Globaldata, citing a Bloomberg report that quoted a person familiar with the matter.

Rationale Behind JPMorgan’s Move

VW Pay focuses on delivering payments technology to companies across the mobility ecosystem, enabling digital payments for vehicle purchases, fuel, parking and other services. Although JPMorgan won’t operate the platform, it will continue providing mobility-related services to its clients in the sector.

JPM’s decision will impact staff in Luxembourg and Munich. In Luxembourg, 33 roles are expected to be cut in 2026 according to the financial sector union Aleba, while other employees may be reassigned or see their positions eliminated.

According to a Luxembourg Times article, the business remained loss-making despite higher transaction volumes, rising from €180.9 million in 2023 to €222.6 million in 2024, with annual losses widening from €24.2 million in 2023 to €28.8 million in 2024. Even after a €31 million capital injection in April 2025, executives concluded there was no viable path to profitability.

It’s the latest instance of JPMorgan being willing to move away from tech initiatives that fail to meet expectations. In 2019, the firm said it would close its Chase Pay app, a digital wallet launched to compete with players like Apple that were reshaping consumer payments. When JPMorgan ultimately decided to end the project, fewer than 1% of merchants were using the wallet.

This move aligns with JPMorgan’s efforts to reallocate capital to profit-making regions. In September, the bank announced its plans to launch Chase Digital Bank in Germany to strengthen its position in Europe.

JPMorgan’s Price Performance & Zacks Rank

So far this year, JPMorgan shares have rallied 24.9% compared with the industry’s growth of 25.7%.

Currently, JPM carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Restructuring Efforts by Other Finance Firms

Earlier this month, NorthJersey.com reported, citing a company spokesperson, that The Toronto-Dominion Bank TD is set to close eight branches across New Jersey on Jan 29. 2026, including three in North Jersey, following the closure of six branches earlier this year.

The closures come as banks have been transitioning to online and mobile services while scaling back their physical channels. Further, Raymond Chun, CEO of TD Bank, stated during the investor presentation in September that the bank could save $2.5 billion annually as it migrates transactions to digital, grows digital sales, enhances front-line productivity and optimizes branch size, hours, location and capacity.

Similarly, The PNC Financial Services Group, Inc.’s PNC banking subsidiary, PNC Bank, N.A., announced plans to open more than 300 new branches by 2030, increasing its total branch investment to about $2 billion. This expansion adds 100 new branches to the company’s earlier plan, unveiled last November, which committed $1.5 billion to open more than 200 new branches and renovate 1,400 existing ones.

The new initiative extends PNC’s retail expansion to nearly 20 U.S. markets, including Nashville, Chicago, Sarasota and Winston-Salem. The bank also reaffirmed its plan to renovate 100% of its branch network by 2029 and hire more than 2,000 new employees to support growth and customer service efforts by 2030.

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