French payments startup PayCar has landed €1.3m in a funding round from banking giant BNP Paribas.
The company provides a secure payments platform for the sale and purchase of second-hand vehicles between private individuals.
The platform allows purchasers to credit their account and on a appointed day the agreed price is transferred to the seller.
PayCar’s was incubated as part of the bank’s Accélérateur Fintech by L’Atelier BNP Paribas in March where it spent four months working closely with the firm’s insurance arm BNP Paribas Cardif.
The company will maintain this close relationship to BNP Paribus with the bank purchasing a minority stake in the startup.
BNP Paribus says it will help to finance PayCar’s growth as well as offer its banking expertise to help develop the product.
The bank’s group deputy COO and head of international financial services Jacques d’Estais said, “Our investment has twin objectives: to enable PayCar to develop its commercial potential and to help us prepare for the digitisation of bank cheques.”
PayCar will also look to offer BNP Paribas’ vehicle insurance policies and consumer loans through the platform.
The startup’s chairman Vincent Marty said: “Firstly, the funds raised will enable us to put the right structures in place so that we can move even faster; and secondly, the partnership with BNP Paribas will help to speed up adoption of our service and drive business growth.”
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