The deal will help position VWFS as a leader in mobile payments and parking sectors, while providing the foundation for future PayByPhone growth globally and continued innovation, according to the companies.

PayByPhone's technology, a fast way to pay for parking, will soon be available for millions more drivers across the globe.

In 2016, PayByPhone has already processed more than $250 million in payments and is adding approximately 7,000 users per day to their already substantial base of more than 12.5 million registered users.

Kush Parikh, CEO of PayByPhone (pictured above) said: "This is a tremendous opportunity for PayByPhone to explore new ways to expand our mobile payments technology into different verticals, markets and use cases. The mobile payment movement has exploded recently, and we look forward to accelerating our consumer parking and payments agenda made possible by this deal.

"VWFS has been at the forefront of innovation to fit its customers' mobile lives, and we are honored to be a part of its global vision."

The PayByPhone acquisition expands the VWFS footprint in the mobile-payment solutions market, and positions the organization as the central service provider within the Volkswagen Group for the parking business.

The company has already previously acquired a 92% shareholding in Sunhill Technologies, a German market leader in mobile-parking solutions across 90 German cities.

Dr. Christian Dahlheim, the management board member responsible for sales and marketing at VWFS added: "With the acquisition of PayByPhone, we are now the leading provider for the processing and mobile payment of parking. In the future, we will be bundling this know-how in a separate business field around the theme of parking.”

The acquisition will not affect any of PayByPhone's current operations. In the near future, PayByPhone's existing clients and customers can expect improved support, more services, and greater app functionality as the integration with VWFS continues.

The paybyphone app is available on iOS, Android, and all other mobile platforms via its web application and online presence.

The terms of the deal were not disclosed.