Nissan’s $1.2B Financing Round With PayPal Is A Perfect Example Of How Automakers Are Relying On The Internet
A new round of funding for Nissan Motor Finance will help it build out its digital business platform for customers to get started in the automotive payments space, the automaker announced Thursday.
The company will use the $1 billion in new funding, announced earlier this month, to accelerate the pace of its digital payments and payments innovation.
Nissan, which already operates in China and Japan, announced in April it would start using blockchain technology to connect the payments process to its vehicle-to-vehicle network.
The Nissan Motor Financial team includes former PayPal executives and engineers who helped develop the company’s technology.
It will use $1 million of the new funding to help accelerate Nissan’s progress on its digital payment solutions and other initiatives, the company said.
Nissan has built a reputation for developing a flexible and scalable payment platform that integrates its mobile apps with the company network of dealerships.
The automaker also has a strong presence in retail and commercial banking, and its platform has helped more than 10 million customers with credit and debit cards in over 140 countries and territories.
The new funding will help Nissan build out more sophisticated payment solutions that make payments more convenient for customers, as well as better enable the automakers’ network to handle larger volumes of transactions.
Nissan has also been working to improve its customer experience through a new payments app for Android and iOS, according to the company.
The news comes as automotive companies have increasingly adopted blockchain technology, which allows users to send and receive payments using a digital ledger that can be linked to digital assets.
The companies have been moving into the payments space as a way to streamline the process of issuing and managing payments, which has become increasingly difficult due to the complexity of the transactions.
In November, Tesla and Google announced that they had signed a deal to start working together to develop a payment platform for cars.
Tesla CEO Elon Musk recently said the two companies could begin rolling out the platform as early as next year.