TrueLayer partnered with Cazoo for instant payments and refunds

By Joy Dumasia

TrueLayer, Europe’s open banking platform, announced its industry-first collaboration with Cazoo, the UK’s leading online car retailer, makes buying or selling a car as seamless as ordering any other product online to offer instant payments and refunds for its customers.

Cazoo turned to market leader TrueLayer to overcome costly issues most commonly associated with traditional card payments. Increasingly, eCommerce retailers are experiencing high failure rates due to card payment limits, potential fraud and chargebacks, and slow refund mechanisms that can sour the customer experience. These issues can significantly impact the bottom line, and further erode profit margins for retailers with high order values.

Cazoo has integrated TrueLayer’s PayDirect platform to offer instant payments, powered by open banking that removes costly card and interchange fees and delivers an instant transaction confirmation. Customers experience a quicker, easier checkout by securely connecting to their bank to confirm payment. PayDirect also supports Cazoo’s return policy, offering instant refunds to the purchaser should they change their mind, compared to up to 5 days for refunds for card-based payments.

Roger De’Ath, Head of eCommerce at TrueLayer, said: “Cazoo appreciates that consumers are increasingly dissatisfied with the traditional ways of buying or selling a used car. They’re an industry innovator, determined to make the end to end process, including the checkout and payments, as hassle-free as possible. With TrueLayer supporting instant bank payments for purchases and the ability to process instant refunds through PayDirect, it has created an incredibly powerful proposition. We’re proud to be working with such a forward-thinking business and look forward to collaborating with Cazoo to ensure the best possible experience for its customers.”

Recently, IBS Intelligence reported that TrueLayer, Europe’s open banking platform, announced that Mariko Beising had joined the firm as its new Head of Payment Partnerships, bringing a decade of experience, most recently at Klarna, where she led partnerships with Payments Services Providers (PSPs).