Nuapay (EML Payments’ (ASX: EML) (S&P/ASX 200) Open Banking Product Suite) is helping Cocoon deliver a better way for customers to pay for automotive purchases. Its simpler, safer and more secure way for customers to make payments directly from their bank accounts helps automotive dealers address the highly compressed margins in car sales (typically <1%).
Also Read: Fintech Partnership between FNWB and Splash Financial
Until now, alternate payment solutions carry either high costs (0.4% – 1% for card payments) or are cumbersome and prone to error (deposit or balance payments). Businesses at the forefront of payment solutions are making bold moves to address these pain points. Amazon, the U.K.’s largest online retailer, announced it would stop accepting Visa credit cards from Jan. 19, 2022.
Cocoon automates this process, providing a seamless experience for customers to make fast and secure payments directly from the banking app on their phone in a few simple clicks. As a result, merchants are not subject to card scheme fees and no banking or card details are shared with the dealer, reducing the risk of fraud for both the dealer and their customer.
There are car dealers already making great strides with digital transformation, including Cocoon’s partner, Redline Specialist Cars, the U.K.’s largest independent prestige car dealer.
”Cocoon makes taking remote payments from our customers much quicker and more secure than taking card details over the phone. Which, along with a cost saving of 75% on traditional card-based alternatives, made making the switch a no brainer,” confirmed John Graeme, Finance Director at Redline.
”Automotive dealers need an innovative digital payment solution that can significantly reduce payment processing costs while removing operational overheads,” added Sam Meekins, Head of Product at Cocoon.
Customer expectations are wildly changing with new entrants Cazoo and Cinch offering purely digital experiences, forcing offline retailers to catch up and improve their customer experience with smooth, quick and digitally-enabled buying journeys.