The FINANCIAL — The BNP Paribas Group, via its French Retail Banking; BNP Paribas Cardif and BNP Paribas Personal Finance businesses, is participating in the first-ever funding round for PayCar, taking a stake worth a total of €1.3 million.
PayCar is a FinTech startup, which has created a secure, innovative payment solution for settling purchases of second-hand vehicles.
Founded in March 2015 by Vincent-Marty-Lavauzelle and Mike Waldman, PayCar provides a payment platform for the sale and purchase of second-hand vehicles between private individuals, offering a simple, secure alternative to using bank cheques. The identities of both the purchaser and the seller are checked out ahead of any transaction. The purchaser credits his/her PayCar account and, on the appointed day, the agreed price will immediately be transferred from the PayCar account to the seller with just a few taps on a smartphone screen.
PayCar began an incubation process at the “Accélérateur Fintech by L’Atelier BNP Paribas” in March this year, working closely for four months with the Group’s insurance arm BNP Paribas Cardif. This proved to be a highly beneficial period for both BNP Paribas Cardif and PayCar, as it enabled the partners to identify areas of common values and pinpoint a number of opportunities for the BNP Paribas Group as a whole. The solution devised by PayCar is seen as a highly useful complement to the existing range so as to enable the provision of a comprehensive service for the buyers and sellers of second-hand cars. Going forward, customers will, for instance, be able to make use of a digital bank cheque issued by the Retail bank, take out vehicle insurance through BNP Paribas Cardif and obtain a consumer loan from BNP Paribas Personal Finance.
This ground-breaking collaboration between BNP Paribas and PayCar is taking on a new dimension today as the startup completes its first funding round, which will raise €1.3 million. The Group’s minority stake in PayCar is intended both to finance the company’s growth plans and support its development, as BNP Paribas brings to the process its expertise and knowledge of the target market. Vehicle purchases constitute the second biggest expense for households, behind the cost of housing, according to BNP Paribas.
In line with the Group’s Open Innovation policy, this agreement with PayCar does not include any exclusivity provisions.
Explained Jacques d’Estais, Group Deputy COO and Head of International Financial Services: “For over three years now, BNP Paribas has been engaged in a process of Open Innovation in both Europe and the USA to develop FinTech incubation and acceleration ecosystems designed to support the Group’s transition towards building the digital bank of the future. Our collaboration with PayCar is a perfect illustration of this. Our investment has twin objectives: to enable PayCar to develop its commercial potential and to help us prepare for the digitisation of bank cheques.”
PayCar Chairman Vincent Marty-Lavauzelle pointed out: “This funding round will have a double impact for PayCar. Firstly, the funds raised will enable us to put the right structures in place so that we can move even faster; and secondly, the partnership with BNP Paribas will help to speed up adoption of our service and drive business growth. Our long-term goal is to establish PayCar as the standard payment method for all second-hand vehicle sales.”