Providing digital & mobile payment options
is no longer optional.
Flexible electronic payments gives dealerships a competitive advantage
It’s one of the great ironies of the automotive service industry. Getting paid by customers – a process that impacts cash flow, payroll, capital investment and more – is given a low priority by many dealerships. But that’s changing. More than just a convenient alternative, modern dealerships now view digital and mobile payment as a competitive advantage that impacts customer experience, sales, productivity and more.
Digital and mobile payments go mainstream
Not long ago you were forced to visit an ATM to get cash to shop at a pharmacy, grocery store, or other retailer. Since then, the payments industry has undergone rapid advancements. According to a ReportLinker report, the digital payments market has grown at an average annual rate of 18% between 2018–23, topping out at over $87 billion. By 2025, there will be an additional 6.5M new mobile wallet users annually. You can thank e-commerce giants like Amazon and Apple for generating this preference for simple and intuitive digital electronic payments. What’s more, younger people in particular prefer brands that embrace innovative and easy-to-use options over those that do not.
Dual opportunity for dealerships
The bottom line? The act of paying has become a key element of customer experience, part of the overall value proposition a business offers. This presents a dual opportunity. First, provide consumers what they expect – convenient digital and mobile payment options. Second, leverage digital and mobile payments as a catalyst to minimize point of sale friction and drive efficiencies.
Experts estimate that nearly 70% of customers spend
more when using buy now, pay later.*
Payments are an under-utilized growth tool
According to Stripe, a leading online payments provider and long-time partner with Dealer-FX, digital and mobile payments are an under-utilized tool for revenue growth. Nearly two-thirds of businesses agreed that they create new ways to generate income. For example, online payments open the opportunity to generate bill alerts, reminders and confirmations – all proactive messages delivered over a channel that customers naturally engage with.
“Our Payments tool is just one of the many fully integrated applications within ONE Platform, our advanced fixed ops software solution”, says Steven Marques, VP of Product with Dealer-FX. “We’ve recently added valuable improvements that emphasize payment security and fraud protection. Plus, strategic partnerships with leading payment processors like Stripe [new feature-rich handheld Card Readers] and Affirm & Klarna, in support our Buy now, pay later offering.”
Whether you’re a large automotive group or single rooftop, ignoring digital and mobile payment means valuable revenue is being left on the table. A 2017 survey by AAA found that one in three U.S. car owners couldn’t pay out of pocket for an unexpected car repair bill of $500 to $600. Buy now, pay later (BNPL) has quickly grown in popularity among consumers. Experts estimate that nearly 70% of customers spend more when using a BNPL service. All of which point to strong revenue increases for dealerships offering these options.
Automotive Tech and Trends Round Up: Is Now the Time for a Service Save?
The days are getting shorter, the air crisper, and playoff baseball is at hand. Which means there’s one question on everyone’s mind: Is this when new vehicle sales start to slide, and the Service Department comes in from the bullpen for the save? The answer, apparently, is that it “depends.” Comparing September sales to last ...
Creating Trust at the Service Drive: Remember the Four Cs
Quick: What’s the top reason for customer dissatisfaction? Unmet expectations. And while failed expectations happen for many reasons, at the core of every disappointing service experience is a breakdown in trust. Whether that happens due to a broken promise time or another example of miscommunication, it still means that an advisor or manager overpromised results ...
Three Questions to Ask About Service Dashboard…and One Special Feature
The service journey can be fast-paced and complicated. One missed appointment, a broken promise time or confused communication can lead to missed steps and a poor customer experience. The pace of service retail in this digital-driven and on-demand market places a premium on efficiency and creates a need to build an automated monitoring, communication, and ...