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Payments keep the This payment technology capability, while widely known,
allows consumers to get what they want, when they want
cars running in the it. The evolution of consumers purchasing larger items and
paying for them slowly over time has led to more big-ticket
purchases. Installment payments also help auto dealers
auto industry map out exactly what amount their customers owe over
time for improved revenue forecasting.
In the same way, ACH helps enhance the overall experience
for both the customer and the auto dealer, offering a faster
and easier way to pay and a clear and verifiable transaction
that can be referenced by dealers in the future. Using ACH
to pay for a car streamlines the transfer of funds from the
borrower, so car dealers can put those funds to use more
quickly.

Perhaps the most unique way to purchase a car is through
using cryptocurrency. With the growing popularity of
crypto over the past few years, top car dealers such as Audi,
BMW, Nissan, Tesla, and Toyota offer cars that customers
can purchase with crypto. Multiple payment method
By Jake Moore options offer the customer the convenience of choosing the
REPAY best options for them.
Convenience with in-vehicle payments
he automotive industry has continually been a
leading innovator, bringing together the latest A recent survey from the American Automobile Association
technology and effective convenience for driv- revealed that the average American spends over 61 minutes
T ers and passengers. Whether through the accel- a day in their car; that's equivalent to more than three years
eration of electric vehicle (EV) adoption or the connected of a person's life (see https://tinyurl.com/53rfkv5j). Therefore,
car, the automotive industry is at the forefront of embrac- being able to pay for purchases from the car has grown
ing innovations that power forward momentum. in popularity over the last few years all thanks to digital
technology and the connected car.
The role of payments is an often-overlooked part of this
innovation. According to McKinsey, banks and lenders Auto manufacturers identified a novel use case for payment
are increasing their digital capabilities in order to stay technology that is rapidly accelerating in the industry,
competitive in the space (see https://tinyurl.com/anxsw78k). especially in EVs. The future of in-vehicle payments is
These types of payment capabilities are just a few of the endless, including partnerships with large retailer apps to
ways the payments industry is making the car purchasing purchase groceries from the front seat. This new frontier
journey as seamless and innovative as possible. of payments will allow consumers to stay inside the car
and purchase items outside of it, creating a frictionless
According to a recent ABI survey, by 2030 the auto purchase experience.
industry is expected to invest $238 billion annually into
the transformation to EVs and digital transformation (see A recent study from Juniper Research found that by 2025
https://tinyurl.com/3ffzks9w). With this investment, the auto in-car payments could reach $86 billion, up from $543
industry will continue to improve on various payment million in 2020 (see https://www.juniperresearch.com/home).
capabilities including installment payments, in-vehicle With the market continuing to grow, car manufacturers
payments, debit, ACH and crypto with the overall goal of should continue to invest in payment technologies that offer
helping the consumer have a better payment experience. greater choice and services for customers to inspire greater
loyalty and interest. With connected car manufacturing
Creating a symbiotic auto continuing to expand, the payment limit is endless.
dealer-customer relationship
With payments in the auto industry rapidly accelerating,
As consumer payment preferences continue to change, it's fintechs are constantly innovating to develop new solutions
imperative the auto industry similarly evolves its payment that meet consumers' evolving needs. Among these are
method options. Among the many ways the payments ACH, installment payments and crypto. Payments continue
industry is helping the customer's car buying journey is to be woven into the fabric of everyday life, and the car is
through installment payments. With installment payments, the next mile marker on this journey.
the customer has the ability to pay for the car purchase
over time by dividing the purchase amount into smaller Jake Moore is executive vice president of Consumer Payments at REPAY,
equal payments. https://repay.com. Contact him at linkedin.com/in/jake-moore-
150a9024.
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