In the past few years, the auto industry has changed dramatically with the introduction of car sharing services like Uber and Lyft, which are continuing to influence how buyers want to finance vehicles. Additionally, Millennials are expected to become the largest car buyer demographic by 2020, according to Cox Automotive, and their payment preferences will greatly influence the auto finance industry and the payment options available.
With 2018 promising to be an exciting year ahead, Speedpay’s Lori Beck, Head of Sales and Business Development, shares her auto industry payment predictions for 2018.1. More Flexible Payment Options
With the continued growth of car sharing and the pay-per-ride model, the auto industry may need to adapt to consumer payment preferences and adopt a more flexible approach to payments. Buyers may no longer want a 3-year lease, and auto lenders should consider preparing to offer shorter-term payment options as well as subscription-based payment services. By increasing flexibility in payment options, the industry would be able to support any term subscription the consumer wants to pay as well as the consumer’s need to break up payments.2. Additional Emphasis on a Customer-First Mindset
Dealerships and auto lenders will continue to have a customer-first mindset. Since many buyers now split vehicle payments with roommates, friends, neighbors, coworkers, a significant other, etc., the auto industry must adapt to create a seamless payment experience where individuals can easily split a single payment. At this time, the industry is exploring what it could mean to receive multiple simultaneous transactions and how the payments industry can make this experience easier for the customer.3. Increased Mobile Offerings
As Millennials become the largest car-buying demographic, auto lenders need to offer payment options where Millennials spend the majority of their time – on their mobile devices. This offering provides consumers with the ability to pay from wherever they are and move onto the next activity, which is aligned with Millennials’ always-on-the-go lifestyle. For this reason, mobile payment solutions are a large focus for Speedpay in the year ahead, and Speedpay and moBills® are working together to provide consumers with the ability to make a payment in two taps right from the mobile wallets of their phones. Additionally, Speedpay is rolling out its Next Gen platform in 2018, which will provide auto finance clients with another flexible, fast and easily configurable payment solution.
Interested in learning more about Speedpay’s work in the auto finance industry? Contact our experts: https://payments.westernunion.com/contact .