Cryptocurrency payments and marketplace lending platform offers new financing solutions for auto dealers, lenders and car buyers
Cion Digital, developer of the leading cryptocurrency payments and marketplace lending platform for the auto industry, has been selected as one of five finalists for the 2022 DrivingSales Innovation Cup. The Innovation Cup is a coveted prize awarded to the most progressive innovations for auto dealers released over the last year.
“Credit profiles for new generations of car buyers are changing, and the way we lend to these consumers must also change,” said Fred Brothers, president and co-founder of Cion Digital. “We designed our crypto platform to integrate into existing dealership sales and financing processes, so that auto dealers can seamlessly accept cryptocurrency transactions and process crypto-secured loans.”
Among Millennials that earn at least $75,000 per year, 59 percent own digital currencies, according to the 2022 Investopedia Financial Literacy Survey. Yet Millennials tend to have high debt ratios and thin credit profiles compared to Generation X consumers at the same age. Additionally, 88 percent of Gen Z plan to purchase their first vehicle within the next five years, according to Autotrader.com, and a sizeable 23 percent of Gen Z own cryptocurrency, according to the Investopedia survey.
Payment and financing options for younger, crypto-owning generations are limited, with most dealerships still relying on traditional payment and financing methods, including credit profile screening to secure loans for customers. Cion Digital’s innovative crypto dealership platform offers a first-of-its-kind lending marketplace that allows car buyers to choose from crypto-backed loans that offer significantly lower rates than traditional loans.
“Many crypto investors are long-term holders, but they are more than willing to use some of their crypto assets as loan collateral to help them make major purchases,” said Brothers. “This delivers a win-win-win for consumers who get to keep their cryptocurrency, dealerships that can finance more deals, as well as lenders that can use the collateralized crypto to help cover loan values on recovered vehicles, if necessary.”
Cion’s crypto platform transacts at lightning speed, and can automatically convert crypto to U.S. dollars during the transaction so that dealerships are not subject to the price volatility of crypto markets.
The Innovation Cup winner will be announced during the DrivingSales Executive Summit, to be held at the Bellagio in Las Vegas, NV, October 9-12. The top five vendors will compete on the main stage at the prestigious event. All finalists come away with cash prizes and a chance to present their ideas in front of the auto industry’s most progressive dealers.