Auto lenders are finding that they have two choices: go mobile or go out of business. These days, car buyers can in many cases go on the web and get an online auto loan all set up before they even start visiting dealership lots and taking prospective rides on test drives.
This is bad news for auto lenders. After all, the more a customer can do on her own, the less she needs an auto finance service provider.
Some auto finance service providers are being proactive and doing what they can to stay involved in this process by having online presences, proprietary apps, and smart phone functionality. In recent months, some auto lenders have inked deals with Square, the box shaped payment-service device that connects to cell phones to accept credit cards payments. These agreements will let the auto loan providers use the Square Wallet service as a database that contains the payment and loyalty card information of their customers. Moreover, buyers can use the Square Wallet service to locate companies, including auto finance lenders, using Square.