Digital credit business, MoneyMe, unveiled Autopay on Wednesday, a secured vehicle finance solution for dealers and major growth innovation that the company believes will transform the $12 billion automotive finance industry. Autopay is a same-day, drive away finance solution for dealers (B2B), brokers and consumers (B2C) delivering an Australian-first one-hour approval and settlement, using market-leading speed and capability to disrupt current vehicle finance processes. The product will leverage MoneyMe’s existing Horizon technology platform.
Dealerships and brokers will have direct access to Autopay, delivering a same-day settlement experience, processed on average in 60 minutes, every day of the week. In contrast, incumbent providers have high friction settlements that typically take a number of days, with extra delays for weekend transactions, despite dealerships being open Saturday and Sunday. Autopay is now available to use directly in dealerships, with several dealerships already set up for use.
Autopay materially expands MoneyMe’s addressable market tapping into Australia’s automotive finance market worth an estimated $12 billion in new loans every year, with an annual growth rate of over 2%. More than 3 million vehicles are financed per year across Australia, with approximately 30% of loans for new car and 70% for used car sales.
Autopay adds to MoneyMe’s stable of products, building its loan book and diversifying returns with access to a new $12 billion market opportunity. The company’s products, built on one platform, creates seamless advantages to cross-sell to MoneyMe’s Freestlye, Personal Loans and other products. MoneyMe expects its cost of funds to continue to drop as they add security to the loan assets in the book.
MD and CEO of MoneyMe, Clayton Howes commented, “We believe dealers who have access to finance that is settled in minutes and is a same-day drive away product will have a distinct sales advantage. In the same way that people look to Afterpay for where they shop, we expect consumers will look to Autopay when they purchase their vehicles. This latest innovation leverages our Horizon technology platform, with high automation, dynamic pricing and best-in-class speed to give dealers and customers an unparalleled experience. With an addressable market of circa A$12b, a strong customer use case and our ability to quickly assess and price creditworthiness, we expect Autopay to be a key driver of MoneyMe’s growth”