Payments platform Cocoon is partnering with EML’s opening banking product suite solution Nuapay to drive digital payments at car dealerships and save on processing fess while offering customers an easier way to pay.
“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,” John Graeme, finance director at Redline, a U.K.-based premium car dealer and a partner of Cocoon, said in a press release on Thursday (Jan. 13).
Nuapay’s Open Banking Product Suite gives Cocoon payment options for customers that are securely made from their bank accounts, while car dealers open tight car sale margins. The solutions sidestep issues associated with alternate payment methods, like the high costs of 0.4% to 1% for card payments, or others that are error-prone or hard to use.
“Automotive dealers need an innovative digital payment solution that can significantly reduce payment processing costs while removing operational overheads,” said Sam Meekins, head of product at Cocoon.
Cocoon automates the alternate payment process, offering a seamless experience that enables customers to make secure payments from their banking app. There are no card fees, and the risk of fraud is reduced since no card or bank details are exchanged.
Headquartered in London and founded in 2019, Cocoon’s software platform powers low-cost, low-friction payments for the automotive industry and healthcare sector. Cocoon offers account-to-account payments, and also processes card payments with all the major acquirers.