VW Buys Mobile-Payment Provider PayByPhone for Parking Services

VW Buys Mobile-Payment Provider PayByPhone for Parking Services

Foto: Fotolia

Volkswagen bought North American parking-payment operator PayByPhone in the latest move by Europe’s biggest carmaker to expand from manufacturing into mobility services, according to Bloomberg. The purchase of Vancouver-based PayByPhone, which processed more than $250 million in transactions this year, will turn the company’s Financial Services unit into the leader in mobile payments for parking, the automaker said in a statement. The companies aren’t disclosing the cost of the acquisition.

Volkswagen set up a ride-hailing and car-sharing division named Moia this month, giving it the same status as the company’s vehicle brands such as Audi or Porsche, with the aim of eventually generating billions of euros in revenue from the unit. The move is part of Chief Executive Officer Matthias Mueller’s response to industrywide technology developments such as mobility services, automated driving and electric powering systems, as Wolfsburg-based Volkswagen emerges from its diesel-emissions cheating scandal.

The financial-services unit, which oversees Volkswagen’s auto-loan and leasing operations, bought a 92 percent stake last year in Sunhill Technologies, Germany’s market leader for mobile parking payments. The acquisition of PayByPhone, which says it’s adding about 7,000 users daily to a customer base of 12.5 million, adds sites in London, Paris, Boston, San Francisco and Seattle. The unit will run continue to run parking payments while Moia, established less than a month ago, will keep its initial focus on ride hailing and car sharing, a financial services spokesman said.

More from category

China Concerned About Foxconn U.S. Intentions

China Concerned About Foxconn U.S. Intentions

21 Jan 2017 comment

China’s government has conveyed its concern over Foxconn billionaire Terry Gou’s plan to expand the Apple assembler’s operations in the U.S. after President-elect Donald Trump takes office, according to Bloomberg. A high-ranking Chinese official recently expressed Beijing’s concerns directly to Gou, the people said, asking not to be identified because the conversation was private.

Data Breaches Hit Record in 2016

Data Breaches Hit Record in 2016

21 Jan 2017 comment

U.S. companies and government agencies suffered a record 1,093 data breaches last year, a 40 percent increase from 2015, according to the  Identity Theft Resource Center, Bloomberg reports. Headline-grabbing hacks, with victims ranging from Wendy’s to the Democratic National Committee, are increasing despite regulatory scrutiny and more aggressive cyber-security spending.

IBM Margins Narrow While It Struggles to End Sales Slide

IBM Margins Narrow While It Struggles to End Sales Slide

21 Jan 2017 comment

IBM fourth-quarter sales declined and margins narrowed, indicating that revenue in cloud computing and artificial intelligence hasn’t yet offset acquisition costs and other expenses to move the company into new businesses, according to Bloomberg.