Bodo Uebber, a Daimler board member, says "Mercedes pay" is a fundamental part of the company's digitization strategy.
Daimler Financial Services AG has announced it plans to acquire the electronic payment services provider PayCash Europe SA. The move is a sign of the increasing competition among makers looking for ways to allow users of mobility services, such as ride-sharing, car-sharing, etc. to pay for those services.
With a new foothold in the ePayment business, Daimler AG is preparing to its own electronic payment services provider under the “Mercedes pay” brand name. Terms of the acquisition by Daimler Financial Services AG were not disclosed.
However, the acquisition signals an intensification of the fight for digital payment services by automakers, which see it as a crucial element of expanding transportation services such as ride sharing.
Last month, Volkswagen AG announced it was acquiring PayByPhone, a company that lets drivers pay for parking using their mobile phones as part of its effort make money from emerging businesses like ride-sharing and short-term car rentals.
(Gasoline prices climb with start of the New Year. Click Here for details.)
“‘Mercedes pay’ is a fundamental component of our mobility and digitization strategy. Daimler’s new payment system underscores our ambition, as a leading provider of digital mobility services, to make the products and services we offer even more appealing,” said Bodo Uebber, member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Financial Services
Klaus Entenmann, Chairman of the Board of Management of Daimler Financial Services AG stated: “Our philosophy is to provide mobility at your fingertips. ‘Mercedes pay’ allows our customers to easily and securely pay for our mobility offerings and services using their smart phones.
“Mercedes pay” will be integrated into Daimler Mobility Services GmbH, a subsidiary of Daimler Financial Services, and incorporates a variety of different mobility services, including the market leader in car-sharing, car2go, and the mytaxi taxi app, which operates in nine European countries.
In 2016, Daimler Financial Services AG had more than 4 million financed vehicles in its portfolio for the first time in the company’s history.
“Mercedes pay” will mainly benefit customers who, in the future, will only need to provide their payment details one time, in order to use a range of Daimler’s services. This is made possible by the eWallet function, a virtual source of payment,” Entenmann said.
(Click Here for details about the Achates engine design that could double gas mileage.)
PayCash Europe SA is a financial institution that is regulated by the Luxembourg banking authority with a license for electronic cash. The ePayment company, which was founded in 2012, also offers solutions for cryptocurrencies, such as Bitcoin and eWallet systems, in addition to mobile payment services.
Earlier this month, Volkswagen launched a digital business division called Moia that will offer, among other services, an on-demand shuttle for commuters living in urban areas in an aim to expand beyond its traditional focus of making and selling cars.
PayByPhone, which processed about $250 million in transactions this year, allows users to pay for parking via a mobile app. It handles tens of millions of transactions annually.
Volkswagen said it plans to link PayByPhone with other mobile payment services into a separate business built specifically around parking fees.
Volkswagen’s goal is to turn its financial services arm—the division that bought PayByPhone for an undisclosed sum—into the central provider of mobile payments for the parent company, which includes car brands Audi and Porsche.
(Trump threatens Canada, Mexico, with new border tariffs. Click Here for the story.)
Volkswagen Financial Services in 2015 also purchased a large stake in Sunhill Technologies, a company that provides mobile payment services for parking in 90 German cities.