FCA Bank extends BNPL to the automotive aftermarket

FCA Bank has just introduced its new platform called FCA Bank Pay. This solution aims to establish FCA Bank on the Buy Now Pay Later market and to open up this financing model to the automotive market. To do this, the manufacturer's captive is banking on a solution that can be used both at the point of sale and online.

FACTS

• FCA Bank Pay is a flexible payment solution for online and point-of-sale purchases. It is aimed initially at the Mopar service centres of Stellantis Group dealerships. Later this year, it will be extended to the service network's workshops.

• The platform will enable authorised dealers to offer their customers new payment methods, with or without credit:

• Split Payment: payment in several instalments over a short period of time and without interest,

• Instant Credit: for larger amounts, over longer periods and therefore with interest.

• Both offers are based on two instant acceptance solutions at the point of sale: Natixis' SmartPOS payment solution associated with a Pax terminal and a Paybylink solution. They will make it easier for FCA Bank's customers to pay for, and even finance, their repairs, spare parts, accessories and other after-sales services related to their vehicle.

CHALLENGES

• Boosting sales for FCA and its partners: FCA Bank has turned to fractional payments, which promise additional economic benefits for the merchants who implement them and a source of new business for the bank.

• A step into the new era for the automotive sector: The rise of Buy Now Pay Later has not escaped FCA Bank's attention and it now wishes to deploy its new BNPL arm within the group and offer this flexibility to its after-sales solutions customers.

MARKET PERSPECTIVE

• The automotive financing market has undergone a profound transformation in recent years, driven by the innovative initiatives of all the players in the sector, in particular via subscription.

• For its part, FCA Bank has been working for several years to digitalise its offerings. In particular, it has developed a pre-scoring platform enabling its customers to visualise their borrowing capacity before simulating the purchase and configuration of a vehicle online. This platform makes it possible to simplify, shorten and digitise the loan signature process.

•