LEAD STORY e n o h P y B y a P ) 2 ( © PayByPhone PayByPhone also offers off-street solutions, including the particularly convenient AutoPay, where the entire parking process, including payment, is fully automated. Parking Made Easy PayByPhone, headquartered in Vancouver, Canada, is one of the world’s leading providers of mobile parking solutions. Its app- based solutions are in use in over 1,300 cities and with numerous car park operators in North America, the UK, France, Germany and Switzerland. We asked about the technical background and how the system works. A ccording to the company, more than 110 million motorists worldwide al- ready use PayByPhone. In Germany, the company is represented at more than 530 locations, across local authorities and opera- tors. PayByPhone provides cities and local authorities with a digital infrastructure that enables them to offer parkers various cash- less payment methods via the app. In this context, PayByPhone acts as the ‘merchant of record’ vis-à-vis the payment providers and handles the entire payment processing. Users benefit from simple and intuitive operation. After downloading the free app, car owners register and enter their vehicle details and a preferred payment method once. At PayByPhone locations – provided location services are enabled on the smart- phone – the app automatically detects the current parking space or nearby parking zones and displays them directly on the home screen. The user confirms the loca- tion, selects the registered vehicle and sets the desired parking duration. With just a sin- gle tap, the parking process begins and pay- ment is initiated. Users in Germany have a wide range of options to choose from, in- cluding PayPal, credit card, Google Pay, Ap- ple Pay and payment via their mobile phone bill. In some cities, the service is further sup- plemented by SMS parking. Seamless Integration Behind the scenes, PayByPhone says it works closely with enforcement authorities, car park operators and other technology providers to deliver a seamless digital park- ing solution to cities, local authorities, oper- ators and users. Central to this are integra- tions with leading parking system providers such as Skidata, Scheidt & Bachmann Park- ing Solutions, Designa and Goldbeck Parking Services. These connections enable car parks and car park operators to use PayBy- Phone for digital payment processes. For users, this results in convenient fea- tures based on Automatic Number Plate Recognition (ANPR) technology. With “Pay- on-Exit”, for example, ANPR automatically records the vehicle’s number plate and ar- rival time upon entry to the car park, mean- ing a ticket is not required. Before exiting, users pay their parking fee via the PayBy- Phone app for the automatically calculated duration. Once payment has been made, the exit barrier opens automatically as the vehi- cle approaches. ‘AutoPay’ is even more con- venient: drivers can enter and exit without having to open the app or take a ticket. ANPR cameras record entry and exit, calculate the parking duration, and PayByPhone auto- matically charges the payment method linked to the account. This requires a one-off activation of the feature within the app. A Complement to Traditional Methods According to PayByPhone, digital parking so- lutions are being introduced in public spaces as a complement to offer motorists greater flexibility and convenience. At the same time, local authorities must ensure that analogue payment options – such as traditional parking ticket machines – remain available to provide barrier-free access for all user groups. On private land, however, the require- ments are more flexible. PayByPhone adopts a technology-neutral approach and offers digital services tailored to different needs and local authority frameworks. In addition to payment via the app, these include regis- tration-free SMS parking and browser-based web payments. Fees and Business Model PayByPhone itself does not set any parking fees, the app provider emphasises. These are defined exclusively by the respective cli- ents – that is, cities, local authorities or pri- vate operators. Contrary to a widespread as- sumption, PayByPhone does not take a share of the parking fees charged for the ac- tual duration of parking. This revenue goes entirely to the respective operator of the parking spaces. The same applies to any penalty or additional charges, for example, for exceeding the parking time. PayByPhone’s business model is instead based on a fixed transaction fee per parking session, agreed in advance by contract – re- gardless of whether the session lasts just a few minutes or several hours. This fee gener- ally remains constant throughout the entire contract period. According to PayByPhone, the client decides whether to bear the fee themselves or pass it on to users. The transaction fee, often referred to as a service charge, covers the technical and op- erational aspects of the service. According to PayByPhone, this includes secure payment processing, compliance with regulatory and banking standards, the protection of sensi- tive user data, the continuous development of the app, the provision of receipts and transaction overviews, geolocation services for location detection, as well as customer service and support. ■ 20 Parking trend international | no. 2-2026