Why is Mercedes Maker Daimler Buying a Bitcoin Business? (OTC:DDAIF)
In a move that has some wondering what they will do with it, Mercedes Benz parent Daimler AG (OTC:DDAIF) has purchased digital payments and Bitcoin transactions processor PayCash Europe. While PayCash handles many types of digital payments aside from Bitcoin and other cryptocurrencies, it may pave the way for the car maker to directly accept payment in Bitcoin in the future. (See also: The Top 5 Investors Investing in Bitcoin)
Daimler Buys PayCash
Daimler acquired PayCash in as part of its mobility and digitization strategy. According to news outlet Automotive World, the acquisition will be used to launch mobile payments for Daimler products and services under the "Mercedes Pay" brand name. In a press release from the company, "Daimler’s new payment system underscores our ambition, as a leading provider of digital mobility services, to make the products and services we offer even more appealing,” Chairman of the Board of Daimler Financial Services, Klaus Entenmann, elaborated, "‘Mercedes pay’ allows our customers to easily and securely pay for our mobility offerings and services using their smartphones. “Mercedes pay” will mainly benefit customers who, in the future, will only need to provide their payment details one time, in order to be able to use a range of Daimler’s services. This is made possible by the eWallet function, a virtual source of payment.” (See also: Buying a Car? Read This Financial Advice First)
In addition to accepting credit card and other e-payments methods, PayCash processes Bitcoin and other cryptocurrency transactions for merchants. This has led some to speculate that in the near future, buyers will be able to pay for their car directly in Bitcoin, without having to go through cumbersome, and often costly, intermediaries.
The popularity of Bitcoin as a means of payment has risen steadily since it was first introduced in 2009. Today, thousands of merchants accept Bitcoin for payment, including large companies such as Dell, Microsoft, Overstock, Virgin Airways, NewEgg, and some Subway franchises. Daimler would be the first company to directly accept Bitcoin payment, however, consumers have used third-party services to buy cars before, such as the Tesla 3 using the digital currency.
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