Auto repair

Toyota uses Stripe to help auto repair shops

Toyota has partnered with Stripe on a program designed to simplify repairs for auto shops while reducing their carbon footprint.

“The challenge for the auto industry and the many local mechanics that support it is that it is much more complicated to maintain a car than it used to be,” the payment company said in a press release issued on Tuesday. July 20.

“The computerization of vehicles, along with the shift from internal combustion engines to hybrid or all-electric engines, has greatly expanded the range of repairs that mechanics need to be able to perform.”

Meanwhile, many vehicles require expensive specialized equipment, which increases the capital costs of equipping an auto repair shop.

To deal with the situation, Toyota has created “Mechacomi” – a portmanteau of “mechanics” and “communications” – which allows car repairers to trade in used tools and equipment.

“But connecting buyers and sellers isn’t enough on its own to make the platform work,” Stripe said. “Used equipment sales are high-value transactions between parties that can only interact once. This results in complex processes, including features like escrow and seller deposits , which limit systemic risk at the cost of increased transactional complexity.

To remove this financial friction, Toyota used Stripe Connect, due to its ability to run a platform business with many-to-many sales and money flow management. It enabled Toyota to set up escrow services and seller deposits and to develop bank transfer and credit card payment options to support the buying and selling preferences of its various segments. of users.

Read more: Data and AI help drivers anticipate future car repairs

PYMNTS recently looked at another innovation in the auto repair world in our profile of CarBeast, a mobile app that helps consumers diagnose current issues on their vehicle and anticipate future service.

Launched last month, CarBeast uses data from hundreds of millions of vehicle maintenance records from dealerships, repair shops and service marketing groups. These records include items such as repairs and maintenance performed, vehicle mileage at time of service, and cost of the repair.

With these details, artificial intelligence (AI) can spot patterns and make predictions that are shared with customers through the app.



About: Results from PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, UK and USA. and showed strong demand for one super multi-functional app rather than using dozens of individual apps.