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Nuapay’s partnership with Cocoon empowers auto sales garages to cut costs by three quarters compared to traditional card-based payment methods, which do not suit automotive dealers.
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%).
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.
Cocoon is a software platform that powers low-cost, low-friction payments for merchants in the automotive and health care markets.
Cocoon’s solution enables merchants to substantially reduce their payment processing costs while also improving their customers’ payment experience.
Along with account-to-account payments, Cocoon’s platform processes card payments with all the major acquirers, allowing merchants to maintain their existing acquirer relationship. This provides merchants with a solution to cover all their payment needs.
More information is available at Cocoon-Payments.com.
Nuapay is EML’s market-leading Open Banking and real-time account-2-account product suite.
Our Open Banking products are unique in today’s market: Refunds? No problem. Instalment plans? We power them. We also offer customers our Direct Debit, Credit Transfers and Instant Payment products all through one platform, giving you a full payment solution powered by our Nuapay accounts, easy to integrate through our industry-leading APIs.
We continually work tirelessly to reinvent what’s possible with our banking and payment solutions, removing inefficiencies and unnecessary costs, saving you time, money and resources at every turn. This is payments as it should be.