In a major strategic shift that reflects the changing face of the financial technology world, Corpay, the corporate payments giant listed on the NYSE, has agreed to sell PayByPhone, its mobile parking payments business, to Lightyear Capital, a private equity firm headquartered in New York. This development marks another important chapter in the fintech space, underlining how companies are narrowing their focus to core business areas while investors seek out specialised technology platforms with strong growth potential.
The deal, which is expected to be completed in the second quarter of 2026, subject to regulatory approvals, is part of Corpay’s broader strategy to sharpen its focus on corporate payments solutions and streamline its business portfolio. Financial terms of the transaction remain undisclosed, but the move signals significant confidence in the future of PayByPhone under new ownership.
Corpay’s decision to sell PayByPhone comes at a time when the company is consolidating its offerings to strengthen its core business units. For decades, PayByPhone has been a leading platform for mobile parking payments, providing consumers and municipalities with a simple way to pay for parking using their phones. By focusing resources on key growth areas, Corpay’s leadership believes the sale will enable both entities to succeed on separate but complementary paths.
What PayByPhone Offers and Its Market Reach
PayByPhone has been in operation for more than 25 years and has grown to become one of the most recognised names in digital parking payments globally. Headquartered in Vancouver, Canada, the platform is widely used in major cities across Europe and North America, serving more than 1,300 clients in the UK, France, Germany, Switzerland, and the United States. Millions of drivers have downloaded the app globally to make parking payments easy and frictionless, steering the business into a strong position in the mobility and payments sector.
By giving drivers the ability to pay for parking directly from a mobile device, PayByPhone has helped to reduce reliance on cash and traditional ticket machines while supporting the digital transformation of urban transport services. Its software also provides operational tools for parking operators and municipalities, helping them manage parking demand, reduce costs, and improve customer experience.
Over the years, PayByPhone’s growth has mirrored broader trends in consumer behaviour, where users increasingly demand seamless, digital-first services for everyday activities. The company’s footprint in Europe and North America positions it well for future expansion, both geographically and in adjacent areas of mobility payment services.
Corpay’s Strategy and Why PayByPhone Was Sold
For Corpay, which is focused on corporate payment solutions, the sale of PayByPhone is a deliberate move to refine its business strategy and reinforce its position in commercial payments. Ron Clarke, Chairman and Chief Executive Officer of Corpay, said the company hopes PayByPhone will flourish with Lightyear Capital’s support while Corpay continues to build its corporate payments offerings.
The transaction aligns with Corpay’s recent strategic trajectory. In recent years, the company has engaged in a number of acquisitions to expand its corporate payments footprint and enhance its product suite. At the same time, the company has been stepping back from non-core assets that do not fit with its long-term operational priorities. Selling PayByPhone allows Corpay to reallocate resources to areas where it sees the highest growth potential while also simplifying its organisational framework.
Industry analysts see this strategy as part of a broader trend among fintech firms to focus on core competencies and divest from businesses that require different operational expertise or target different market segments. Such decisions are driven by the desire to improve profitability, sharpen competitive focus, and deliver stronger returns to shareholders.
Corpay does not expect the sale of PayByPhone to have a material impact on its 2026 earnings outlook, suggesting that the company’s core business remains solid even as it trims non-core activities. The firm has emphasised its commitment to corporate payments and anticipates delivering strong results from its primary business units in the years ahead.
Lightyear Capital’s Plans for PayByPhone
Lightyear Capital, the private equity firm acquiring PayByPhone, brings significant experience in financial technology and vertical software investments. The firm has more than $7 billion in assets under management and specialises in helping companies scale through operational support and strategic investments. For Lightyear, PayByPhone represents the firm’s 18th carveout transaction and eighth investment in payments and financial software sectors.
Under Lightyear’s ownership, PayByPhone will operate as an independent company. Leadership, including President and CEO Jonny Combe, will remain in place, ensuring continuity and stability for clients and staff as the business transitions. Lightyear’s strategy for PayByPhone is to build on its existing strengths while identifying new growth opportunities that leverage its deep expertise in technology and payments.
Executives at Lightyear have expressed optimism about the future prospects of PayByPhone. They believe the business has significant potential beyond traditional parking payments and can expand into broader mobility payment solutions, tapping into evolving trends in how people move and pay for services in urban environments.
Lightyear has a track record of investing in companies that operate in specialised technology niches and helping them grow organically and through acquisitions. With PayByPhone, the firm aims to accelerate the development of products and services that meet the changing needs of clients and end users in an increasingly digital economy.
What This Means for the Fintech Industry
This transaction reflects a broader pattern in the fintech industry where companies are refining their focus and investors are targeting specialised platforms with strong growth potential. For Corpay, divesting PayByPhone allows it to deepen its commitment to corporate payment solutions, a business that continues to show resilience and demand in both developed and emerging markets.
For Lightyear Capital and PayByPhone, the acquisition underscores the growing importance of digital payment technologies beyond traditional banking and corporate sectors. As consumers and businesses increasingly adopt mobile and online payment solutions, platforms like PayByPhone are well-positioned to capitalise on trends such as smart city initiatives, cashless transactions, and integrated mobility services.
Industry watchers note that PayByPhone’s global reach and established user base make it a compelling asset, particularly as demand for flexible, digital payment solutions grows. The ability to pivot into broader mobility services could unlock new revenue streams and expand the platform’s relevance beyond parking.
Moreover, the transaction highlights the evolving role of private equity in advancing fintech innovation. Firms like Lightyear Capital are increasingly focused on identifying companies with strong product foundations and helping them scale through investment and strategic guidance. This trend is reshaping how fintech companies grow and compete on the global stage.
Looking Ahead
As the transaction moves toward completion, both Corpay and PayByPhone are preparing for their next phases. Corpay will continue to strengthen its core corporate payments business while managing other growth initiatives. Meanwhile, PayByPhone, equipped with a new ownership partner and a clear strategic direction, is expected to explore new opportunities in mobility payments and digital services that extend beyond its traditional parking payments roots.
Clients of PayByPhone have been assured that operations will continue as normal during the transition period. Leadership at both Corpay and PayByPhone have expressed confidence that the change in ownership will have minimal disruption for users while setting the stage for future growth and innovation.
The deal underscores how technology and financial services continue to intersect in ways that transform everyday experiences, from parking in busy city centres to how businesses manage payments and operations. As regulatory approvals are secured and the acquisition is finalised, all eyes will be on how this strategic move unfolds and shapes the future paths of both companies in the global fintech ecosystem.
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