8th March 2023 – In line with its ambitions to become an electric- only brand by 2030, Swedish luxury automaker Volvo Cars has rolled out the XC40 Recharge in India – the first fully electric car made available to customers in the country exclusively via a new direct-to-consumer model that is powered by J.P. Morgan’s online payment gateway.
Fully integrated into the auto manufacturer’s website, J.P. Morgan’s comprehensive payments solution enables Volvo’s customers to select, customize and make down payments for their online car bookings through a wide range of digital payment methods. The outstanding balance is then facilitated through electronic fund transfers – ensuring an easy and seamless end-to-end online car purchase experience for customers.
In addition to our Merchant Services proposition, the underlying flow leverages J.P. Morgan’s virtual reference (VRN) solution, wherein each customer is assigned a unique VRN linked to their purchase order number, allowing for payments to be made synchronously both via the online payment gateway and electronic fund transfers – which are then seamlessly collected and reconciled.
J.P. Morgan’s efficient and coordinated implementation approach with our teams at Volvo ensured that the payments solution was not only seamlessly integrated into our platform, but also met the aggressive timelines to align with our electric car rollout, while assuring us of a smooth end-to-end user experience for our customers.
Nitin Agarwal, CFO at Volvo Cars India
For Volvo, the automated solution further delivers value-add in the form of detailed reporting that provides insights into customer behaviors, as well as reduced counterparty risk by working with a single global banking provider.
Volvo’s launch in India was met with outstanding response, with more than 150 cars snapped up within just two hours of online bookings. “This is a significant milestone for the Volvo Group as we pilot our first online sales model globally, to effectively reach our customers and drive sales of our electric cars, as we transition to become an all-electric company,” said Nitin Agarwal, CFO at Volvo Cars India.
With the success of the India pilot, we will be expanding the new online sales and payments model to other regions and geographies,” Agarwal added.
The deal further demonstrates J.P. Morgan’s ability to offer end-to-end payments solutions to meet clients’ evolving needs, as businesses increasingly shift from traditional to online, digitally focused business models, while also meeting the bank’s commitment to assisting clients’ transition to greener practices and help set the world on a path to net zero by 2050.
“It’s heartwarming to see our payments capabilities integrated into our clients’ platforms, to power the growth of their business, and deliver best-in-class user experiences for their end customers,” said Rajiv Warrier, Head of India Corporate Sales for Payments at J.P. Morgan. “We are pleased to be able to support Volvo’s launch of its first online car sales model globally, and first fully electric car in India, while contributing to J.P. Morgan’s own sustainability goals.”
