Corpay announced an agreement to sell PayByPhone, its mobile parking payments business, as part of a move to concentrate more tightly on its core corporate payments activities.

The buyer is Lightyear Capital, a New York based private equity firm. Once the deal closes, PayByPhone is expected to operate independently under Lightyear’s ownership. Corpay stated that the transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.

PayByPhone has been part of Corpay’s vehicle payments segment, offering digital parking payment solutions and related parking software to cities, operators, and drivers around the world. Despite its global footprint and established position in parking payments, Corpay now considers it outside the areas where it wants to deploy capital and management attention.

This decision comes as Corpay continues to shape its portfolio around corporate payments and cross border payment solutions for businesses. In recent periods, the company has made acquisitions and investments that align more directly with this focus. The sale of PayByPhone follows the same logic. Fewer business lines, more attention on the ones that match the long term direction.

A Portfolio Choice, Not a Performance Issue

Corpay’s leadership made it clear that this is a portfolio decision rather than a reaction to performance. The company expressed confidence that PayByPhone can continue to grow under ownership that is more focused on parking and mobility payments.

From Corpay’s perspective, the divestiture allows capital and internal focus to move toward segments that are more central to its corporate payments strategy. This also simplifies the company’s structure, which is often an explicit goal when firms shift from operating diverse services to building depth in fewer areas.

Corpay also noted that it does not expect the sale to have a material impact on its projected 2026 Cash EPS outlook. More details on the financial effect are expected to be shared during its fourth quarter earnings call. Deutsche Bank acted as financial advisor on the transaction, and Jones Day served as legal counsel.

What This Signals

The message behind this transaction is straightforward. Corpay is choosing clarity over breadth.

Rather than keeping a well known but non core asset inside the group, the company is reallocating attention toward areas that fit its definition of corporate payments and cross border services. At the same time, it is placing PayByPhone with an owner that can give it a more specialized focus.

This is a reminder that growth stories are often shaped as much by what companies sell as by what they buy.

Key takeaways for fintech startups

A few points stand out for founders and operators watching this move:

• Corpay agreed to sell PayByPhone to Lightyear Capital to sharpen its focus on corporate payments.
  
  
• The transaction is expected to close in the second quarter of 2026, pending approvals.
  
  
• Corpay does not expect a material impact on its 2026 Cash EPS outlook.
  
  
• The decision reflects portfolio simplification and tighter alignment with long term strategy.

If you are thinking about how your own product mix or asset base fits your long term direction, reach out. We help fintech teams shape a clear story around strategic choices like these.