PayCash Gives Daimler Options for Expansive Mobility Finance

Why would Daimler AG acquire PayCash Europe SA yesterday? After all, Daimler has a full suite of payment solutions already, including in-vehicle payments for Mercedes-Benz Financial Services.

We see two benefits: APIs and an e-money license.

PayCash is what we would call a payments intermediary, not just a payments facilitator. PayCash offers a suite of application programming interfaces, or APIs, that would allow third parties to tie into Daimler for payments functionality. For example, Daimler just made an investment in Croove, an on-demand car rental platform for vehicle owners. If Croove wanted to allow the car owners that rent through its service to pay off a Mercedes-Benz Financial Services loan with their Croove earnings, Croove could use the PayCash API to create a feature to allow that. Mercedes does not have such functionality today.

Further, the PayCash e-money license gives Mercedes some additional benefits, namely it will allow Daimler to facilitate digital payments across all EU member states without having to gain regulatory approval from each one. (Of course, until the United Kingdom Brexits, but that’s another matter entirely.)

Only four companies own e-money licenses from Luxembourg, one of which is Amazon. In other words, the license appears to have notable value. PayCash received its license in May 2012.

It should be noted that Daimler’s mobility ventures seem to hew as much to commercial vehicles as they do to consumer vehicles. There are several truck ventures on Daimler’s mobility roster, such as CharterWay and FleetBoard.

Daimler had revenue of about $43 billion in the third quarter of 2016. It employs around 284,000 people.

PayCash is based in Luxembourg. Terms of the deal were not released.


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