The owner of Mercedes (Daimler AG) has taken over PayCash Europe which provides Bitcoin payment services. This latest and surprising move is believed to be the German automotive multinational’s decision to try new business ventures like mobile payments. As a licensed electronic money teller in Luxembourg, PayCash Europe presents solutions for digital currencies. The exchange will be utilized by Daimler AG to introduce mobile payments specifically for Daimler commodities and services covered by the Mercedes Pay trademark.
What is Mercedes Pay?
A representative and board member of Daimler AG explained that Mercedes Pay is a basic component of the company’s digital and mobility approach. The mobile payment alternative is part of the strategy to make the company’s products more attractive.
PayCash Europe provides a backend program interface which offers technical and legal platforms that will infuse the crypto-currency into current payment infrastructures. It facilitates processing of payments in primary fiat currencies and provides digital currencies that support Point of Sale (POS) terminals.
According to Daimler AG Financial Services Board Management Chairman Klaus Entenmann, Mercedes Pay is a boon for their clients for as long as they provide payment details promptly. At the same time, it will be possible for them to avail of Daimler’s multiple services. One of these services is the electronic wallet which is a virtual payment source. Daimler will also introduce three new apps:
- Car Sharing
- Taxi App
The company will use this payment system to facilitate and other financial transactions in the coming years.
The automotive industry has not been linked to the new Blockchain technology or virtual currencies. Yet, Visa Incorporated is said to be rushing the system of integrating payment processes for motor vehicles. Bentley Motors Company from the UK announced last October it is offering clients refueling home service using smartphones. Meanwhile, Cadillac (General Motors) introduced a booking service to facilitate flexible sampling of the company’s car models. In other words, the industry is being drawn nearer to possible incorporation to cryptography.
Texas (United States) has taken the lead in setting up crypto-payments for motor vehicles on a manageable level. For example, ride-sharing has become popular in Austin with the emergence of Cell 41 and Arcade City applications. Detailed research is being conducted in Europe regarding Blockchain and crypto-currencies in relation to its benefit for the car industry in the near future.
To understand all these developments better, it is important to know how digital, mobile or e-wallets work. First, these are mobile apps that allow financial transactions helping users to transmit for purchases through smartphones. All the user needs to do is follow instructions. Enter and scan codes or addresses. The payment amount is deducted automatically from the individual’s mobile wallet account.
Consumers can choose from different mobile wallets in the market as more financial technology start-ups are venturing into this enterprise. The mobile wallet has advantages over the use of cash. It is safer to carry digital currency around particularly if the user needs to make substantial payments. Choose one with practical features and get referrals from companies that offer sophisticated features.
The e-Payment service is provided by electronic commerce systems providers for consumers who prefer to buy products online. Mobile applications developed by banks also belong to this group although widely held mobile wallets with these services were created by technology corporations. Some of these are Google Wallet, PayPal, Apple Pay, and Samsung Pay which have built a dependable reputation.
A number of mobile wallets like Level Up, Key Ring and Gyft are based on loyalty and coupons. Key Ring is a mobile wallet meant for consumers opting to capitalize on loyalty perks without having to carry too many cards. Gyft is mobile app that permits consumers to purchase, save and exchange gift cards through mobile phones. Level Up is a mobile wallet that is free of charge and based on loyalty. It is used by 1 and ½ million consumers and 14, 000 companies in the United States.
The Bitcoin wallet is like the standard wallet. The basic difference is it does not use the US Dollar but Bitcoin which has an equivalent value when payment was made. Merchants provide the Bitcoin address with Alphanumeric or QR codes that can be entered as destination addresses. Bitcoin value is frequently volatile so users have to make timely purchases. There are also hybrid wallets like Wirex. This is a financial technology service that supports cash and virtual currencies in a single platform. It is a combined bank account and Bitcoin wallet similar to Visa and Master Cards.
Daimler AG’s Versatility
Daimler AG is a leading multinational automotive firm based in Stuttgart (Baden-Wurttemberg) Germany. It is the 13th biggest car manufacturer globally and second-biggest maker of trucks in the whole world. Daimler was born out of a partnership with Mercedes Benz established in 1924.
Daimler is part of several strategic joint ventures to sustain the company’s standing in car technology and precision. Last year, it partnered with Qualcomm Technologies to develop advanced features of standard car equipment. The two companies are concentration on the enhancement of in-car technology for wireless charging of mobile phones as well as 3G/4G connectivity. Mercedes is working at becoming the first car manufacturer to integrate this kind of technology in automobiles and vans. Likewise, Daimler entered into a similar collaboration with Baidu, a technology company in China. The partners will build software capable of providing information and entertainment for motorists.
The decision to acquire PayCash Europe is another step forward that will bring Daimler AG deeper into Blockchain as well as crypto-currencies like Bitcoin.