PayByPhone, founded in 2000, says it processes USD 300 million in transactions annually.
Volkswagen wants access to proven technology to connect a variety of commerce opportunities and vendors to the cabin of a car and passengers looking for easier payment methods. Whereas it is difficult to earn even a 10% profit margin on the sale of a car, some analysts and startup entrepreneurs estimate the margins that auto makers could reap on the selling of access to car owners and their data could exceed 75%.
The two companies confirmed the deal but Volkswagen officials could not immediately be reached for further comment.
The move comes shortly after the German auto giant launched its “Moia” division, a 50-person unit based in Berlin and created to compete in ride-sharing and other so-called mobility services. Earlier this year, Volkswagen invested USD 300 million in Tel-Aviv-based Gett, which competes with Uber’s ride-hailing service.
PayByPhone says it has agreements with “many of the largest and most complex parking operations in the world.” The company handles payments for a total of 262,000 spaces in Paris, Boston, London, San Francisco and Seattle, The Wall Street Journal reports.
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