Safe? Yep. Fast? Oh Yeah. PayCar Invents New Way to Pay for Used Vehicles
Have you ever purchased a second-hand vehicle?
If you have (and many of us have!), you know there’s a lot to think about and do. You need to determine your budget, requirements, and then search for good options. You need to arrange to view cars. Once all of this is done, and you’ve negotiated a price for the car, you’re finally ready to pay for it. But this is where things become even more complicated.
Paying for a second-hand car is riddled with challenges
Most used vehicles sold privately are purchased with either a bank draft, a personal cheque, or cash, and each possess inherent problems for this type of transaction.
The biggest concern many sellers have with bank drafts is fraud. To verify their authenticity, you need to call the bank during opening hours, but most people buy and sell cars in the evenings and weekends.
With personal cheques, there is risk that the buyer may not have sufficient funds in his account for the cheque to clear. Cash also has its challenges, as neither the seller nor the buyer want to be carrying large amounts and potentially become a target of theft.
And nevertheless, the market for used vehicles is important in many European countries. Here are a few figures:
How PayCar solves this problem
Vincent Marty-Lavauzelle and Mike Waldman started PayCar in August 2015 so people could pay for used vehicles in a fast, simple and secure way on their mobile phone or with a web browser. The idea seduced L’Atelier, BNP Paribas incubator, which onboarded the startup in its program.
Before a transaction takes place, PayCar verifies the identity of both the buyer and seller.
A buyer deposits the required funds in a secured wallet created by MANGOPAY, and the seller can see that the funds are available and confirm the identity of the buyer. The purchase price can be modified from a smartphone to facilitate any price negotiation between the buyer and seller. And both parties receive a confirmation text message once the funds have been transferred.
When Vincent and Mike needed a trusted partner to handle Paycar’s payments, the choice was obvious. According to PayCar’s founders, “MANGOPAY instantly understood our business model and adapted their pricing to meet our business’s needs. They really listened to what we needed. “The fact that MANGOPAY supports payments by bank wire really appealed to PayCar. They also felt that this adaptable technology would enable them scale their operations as PayCar’s business grows.
Vincent Marty-Lavauzelle and Mike Waldman invested a lot of time and energy validating their idea to ensure it addressed a painful problem. In fact, in their survey with more than a thousand responses, they found buyers and sellers would happily pay €20 for a service that made used car transactions secure, simple and fast.
When you consider the average price for a second-hand car in France is €14,000, the price for PayCar’s service is less than 0.14% of the average purchase price. This is clearly a small price to pay for the reassurance buyers and sellers enjoy, and PayCar received a warm welcome in the car enthusiasts community :-)
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