Parking apps see profits soar despite backlash against cashless payment platforms

Two of the UK’s leading parking apps have raked in stellar profits at the same time as being accused of ripping off motorists.

RingGo’s sales soared 16 per cent to £30 million last year and profits rose 20 per cent to £6.1million, while PayByPhone reported revenues up 90 per cent to £12million in 2023, with profits up by 47 per cent to £407,889.

The two firms have grown rapidly in recent years as more local authorities ditch traditional pay-and-display machines in favour of using cashless payment platforms.

But the cashless payment apps have been heavily criticised for their stealth charges to customers on top of standard parking tariffs.

These include an additional fee of 20p for just making a booking on the app, as well as further charges for sending text messages reminding customers that their parking time is coming to an end.

According to the AA, councils used to absorb these extra costs, but because of stretched budgets they are now asking parking app companies to push them on to drivers.

Consumer rights expert Scott Dixon said: ‘It costs nothing to send text reminders, so to charge motorists for it is unreasonable. Convenience fees are a rip-off.’

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