The widely used Vancouver-based mobile app company PayByPhone has been acquired by auto giant Volkswagen’s financing arm.
“This is a tremendous opportunity for PayByPhone to explore new ways to expand our mobile payments technology into different verticals, markets and use cases,” PayByPhone CEO Kush Parikh said in a statement.
Terms of the deal weren’t disclosed.
“The mobile payment movement has exploded recently, and we look forward to accelerating our consumer parking and payments agenda made possible by this deal.”
The international company was founded in Vancouver 16 years ago, and 65 per cent of its employees are based in the city.
“Vancouver was one of our first clients and we’ve grown with the city,” Parikh said in an interview.
Popular pay parking service
The company estimates more than 50 per cent of Lower Mainland households use the mobile payment service while parking in city and private lots around Metro Vancouver.
Parikh said PayByPhone had 6 million registered users around the world in 2014 and in the last three years has added an additional 7.5 million users.
“In the short term, nothing changes …. as we sit down post transaction and start planning what we can do in concert with Volkswagen, our users will benefit from that, and you can expect a lot of that will be around the driving experience,” said Parikh.
In a statement, Volkswagen spokesperson Christian Dahlheim said “with the acquisition of PayByPhone, we are now the leading provider for the processing and mobile payment of parking.
“In the future, we will be bundling this know-how in a separate business field around the theme of parking.”