Corpay plans to acquire Gringo, a Brazilian payment company specializing in vehicle compliance. Gringo claims 2.5 million active users and enhances Corpay’s growth strategy in vehicle payments. This acquisition follows Corpay’s earlier purchase of Zapay, indicating a strong focus on the car debts segment for future expansion.
Corpay, a corporate payments firm, announced plans on February 3 to acquire Gringo, a Brazilian company specializing in vehicle registration and compliance payments. Gringo features a “super app for car drivers” that facilitates instant payments for vehicle taxes, registration, and fines, serving approximately 2.5 million active users monthly. Regulatory approval is pending, but the transaction is expected to finalize by the end of the first quarter.
This acquisition marks Corpay’s second move within the car debts sector, following its recent purchase of Zapay, as mentioned by Corpay’s Chairman and CEO Ron Clarke. He emphasized that the addressable market for car debts is three times larger than that for tolls, suggesting the potential for significant future growth. Corpay aims to enhance Gringo’s services by integrating its full suite of vehicle payment solutions, including tolls and insurance, which is anticipated to yield considerable synergies.
Corpay, formerly FLEETCOR Technologies, is strategically expanding its footprint within the vehicle payments industry, which includes comprehensive service offerings for drivers in Brazil. Following its acquisition of Zapay, Corpay is consolidating its presence by bringing Gringo into its portfolio, potentially reaching a user base of 9 million drivers. The company has seen growth in its vehicle payments segment, emphasizing the growing relevance of the car debts market as a key area for future revenue generation.
In conclusion, Corpay’s acquisition of Gringo exemplifies its commitment to expanding its vehicle payments operations in Brazil. This strategic move aims to leverage synergies between Gringo and Corpay’s existing services, enhancing the offerings for millions of users. As Corpay continues to focus on the lucrative car debts market, it positions itself well for future growth and increased market penetration.
Original Source: www.pymnts.com
