Lightyear Capital has carved out PayByPhone from Corpay, marking its 18th carve‑out and eighth vertical‑software investment. The move signals confidence in the mobile parking payments niche, a market still underpenetrated but scalable with the right strategy. The deal, announced February 4, is slated to close in Q2.

Michal Petrzela, partner at Lightyear, said the sector offers growth potential that aligns with the firm’s focus on high‑margin, recurring‑revenue platforms. PayByPhone’s app lets drivers pay for parking via smartphones, reducing friction for municipalities and users alike. The transaction underscores Lightyear’s belief that untapped urban mobility services can generate robust returns.

Corpay, a provider of payment solutions for the public sector, will retain its core operations while PayByPhone gains dedicated resources to expand nationwide. Investors eye the deal as a test of Lightyear’s strategy to unlock value in niche software ecosystems. The transaction could set a precedent for future carve‑outs in the municipal payments arena.

With the deal closing in Q2, Lightyear positions itself to capture a growing share of the $1.5 billion U.S. mobile parking market, projected to rise as cities push digital payment adoption. The move also signals a broader trend of private‑equity firms targeting underexploited municipal tech stacks for high‑growth, recurring revenue.