Cut Transaction Fees With Open Banking     

Bumper, launched last year after being re-branded from Auto Service Finance, is predicting that open banking will soon become the Number One way of paying in car dealerships by 2030.

The payment technology means customers can pay directly from personal bank accounts to a dealer’s account, using an app, rather than using third party debit or credit cards.

Dealers would benefit by halving transaction costs as well as reducing their exposure to fraudulent card payments, say Bumper.

“Customer transactions are already being transformed by open banking across other retail sectors. Because of the high invoice values associated with automotive, we anticipate it becoming the dominant form of payment in dealerships by the end of the decade,” says Bumper CEO James Jackson.

“Car buyers using open banking can make their payments online in a matter of seconds using just their bank account credentials. Also, because these payments require bank authentication within a customer’s banking app, it makes fraud significantly harder, giving a greater layer of protection to dealers.

“While dealers offering open banking can expect to see their transaction costs halve by the removal of hefty fees associated with card payments. Other benefits include more secure digital payments, minimising dealers’ exposure to fraud, and full GDPR compliance.”