Daimler Financial Services acquires PayCash to create Mercedes Pay

mercedesDaimler Financial Services AG is acquiring the electronic payment services provider PayCash Europe SA. By gaining a foothold in the ePayment business, Daimler AG says it will be launching its own electronic payment services provider under the “Mercedes pay” brand name.

“‘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. The parties agreed not to disclose the details of the acquisition.

Klaus Entenmann, Chairman of the Board of Management of Daimler Financial Services AG said, “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 smartphones. “Mercedes pay” will mainly benefit customers who, in the future, will only need to provide their payment details one time, in order to be able to use a range of Daimler’s services. This is made possible by the eWallet function, a virtual source of payment.”

“Mercedes pay” will be integrated into Daimler Mobility Services GmbH, a subsidiary of Daimler Financial Services, and incorporates a number 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 four million financed vehicles in its portfolio for the first time in the company’s history. The company plans to use the new payment system to facilitate these and other financing transactions in the future.

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.

Even though PayCash Europe supports Bitcoin, it is unclear about whether Mercedes Pay will continue the trend or not. However, with the automobile industry inching towards autonomous and intelligent vehicles, Daimler could gradually shift its focus towards blockchain technology as well.

Daimler is not the only automotive maker interested in payments, earlier this year Volkswagen Financial Services bought mobile parking payment outfit PayByPhone.

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Categories: Mobile Payments

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