FLEETCOR Technologies, Inc. (NYSE: FLT), a global business payments company, today announced the completion of a majority stake acquisition in Brazilian digital mobility payment provider Zapay.
This move is set to expand FLEETCOR's Vehicle Payments division within the Brazilian market, granting the company access to approximately two million drivers who utilize Zapay's mobile app and website for various vehicle-related payments each month.
Zapay, recognized as Brazil's inaugural digital platform for the payment of vehicle taxes, registration fees, and fines, stands out as the sole entity with direct integration across all 27 state-level National Traffic Departments in Brazil.
This strategic position has established Zapay as the premier service for settling vehicle expenses with government agencies in the country. The company has exhibited a robust growth trajectory, with its revenues surging by over 60% on an annual basis.
Under the terms of the agreement, FLEETCOR retains the option to purchase the remaining shares of Zapay after a period of four years, potentially consolidating full ownership. The integration of Zapay is anticipated to bolster FLEETCOR's vehicle payments strategy in the Brazilian market significantly.
Ron Clarke, FLEETCOR's chairman and CEO, expressed optimism about the acquisition's potential for mutual growth, highlighting the "attractive two-way cross-sell opportunity." FLEETCOR has already initiated the process of promoting Zapay's solutions to its existing customer base of seven million drivers. In turn, the company plans to offer its suite of vehicle payment products to Zapay's clientele.
Armando Netto, Group President of Vehicle Payments in Brazil and North America, reflected on FLEETCOR's successful expansion in Brazil, which has extended from toll tags to encompass fuel, parking, and insurance payments. Netto conveyed enthusiasm for the integration of Zapay's services with FLEETCOR's existing offerings, which is expected to enhance the company's market presence in vehicle-related payment solutions.
The announcement of this strategic investment is based on a press release statement and serves as an indication of FLEETCOR's commitment to growing its vehicle payments business in Brazil, a market that continues to show significant potential for digital payment solutions.
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