Toyota Financial Services Italy forms embedded finance partnership with Fabrick

Toyota Financial Services Italy (TFSI), the financial arm of the Toyota Group, has partnered with Open Finance fintech Fabrick in a collaboration that will see embedded finance services integrated into the automotive sector.

In addition, TFSI has become a corporate partner of Fintech District, which is an international reference community operating under Fabrick’s umbrella for the fintech and techfin ecosystem in Italy.

Together, TFSI and Fabrick envisage a future where cars are “intelligent digital tokens” that facilitate payments, financial flow management, and data collection throughout the vehicle’s lifecycle and customer usage.

Through the partnership, an embedded finance solution will be implemented to “optimise” processes through the automation of back-office activities and to simplify interaction with banking and financial stakeholders by making transactions and payment flow management more efficient.

The intention is to improve the development of collection and payment systems for the Toyota and Lexus dealer and service centre network.

Mauro Caruccio, chief executive officer of Toyota Financial Services Italy and chairman and chief executive officer of KINTO Italy, said that its collaboration with Fabrick is part of a broader strategic direction for the Toyota Group, the aim of which is to “enhance a multi-technological approach in vehicle electrification by offering a comprehensive and integrated range of financial and mobility services”.

“Fin-mobility is already well-established within the Toyota Group. KINTO Italia and Toyota Financial Services Italy (TFSI) are already working synergistically to support the ongoing transformation in the mobility sector,” said Caruccio.

“By promoting credit interoperability across all Toyota Group companies in various application areas (financial, insurance, mobility, and payment) and through efficient financial flow management, we can offer simple and accessible purchase or usage options to ensure ease and flexibility throughout the entire lifecycle of the automobile and customer usage.”

A whitepaper by Forrester Consulting and Fabrick found that more than 60% of the automotive companies surveyed are preparing, over the next 24 months, to increase their budgets by more than 20% for payment technology solutions, such as digital wallets (65%), payment orchestration and optimisation (63%), smart routing to a more efficient and high-performing payment provider (61%), and integrated multinational payment acceptance functionality (61%).

“Today, payment systems are integral to everyday life, and by developing new methods and innovative solutions, we can integrate them with services like Toyota Financial Services’ mobility offerings,” said Paolo Zaccardi, chief executive officer of Fabrick.

“It’s no longer just a matter of managing transactions; it’s about creating a user experience that simplifies payments and serves as a touchpoint for the end customer. To achieve this, we collaborate with companies across various sectors, offering services to end customers, helping them to streamline and optimise payment processes and integrate new solutions.”

Fabrick recently agreed to acquire Open Finance solutions provider finAPI GmbH, marking its entry into the German market.