Bumper has acquired Cocoon Payments, the UK-based business providing a digital payments platform to the car retailing sector.

Cocoon was launched in 2021 and its services are currently used by over 20% of the UK’s top 100 franchised dealer groups. 

The management team and staff have all transferred to Bumper as part of the acquisition.

The acquisition follows Bumper’s November 2024 purchase of AutoBI, the specialist provider of business intelligence tools for car retailers and OEMs.

Cocoon has rapidly gained traction by helping dealers reduce costs and streamline payment operations across sales, servicing and parts. 

Its platform supports all major payment types, including credit and debit cards, via in-store terminals or remote pay-by-link, Pay by Bank App and its unique Automated Bank Transfer feature used for handling large balance payments at significantly lower transaction fees than cards.

Cocoon also integrates with several leading Dealer Management Systems, enhancing operational efficiency and reducing administrative time. Additionally, dealers use the platform to pay customers directly for vehicle purchases and part-exchange settlements.

“Cocoon has come a long way since launching just four years ago due to the value it provides dealers across sales and aftersales. It has also grown its customer base at a rapid speed, adding a new dealer group every couple of weeks,” said James Jackson, CEO of Bumper.

“What impressed us about the business was the tech behind its platform and the way it is achieving considerable savings for dealers, especially with its Pay By Bank service, which eliminates the charges retailers pay on credit and debit card transactions and aligns perfectly with Bumper’s proposition.

“We’re delighted to welcome Cocoon’s talented team and customers to Bumper. By homogenising our platforms, this acquisition will accelerate our growth as the leading digital payment solution for car dealers in the UK and across Europe,” said Jackson.

Commenting on the acquisition Sam Meekins, Cocoon Co-Founder, said: “Cocoon was built to give our customers faster settlements, lower costs and a better customer payment experience. 

“We’ve focused on solving real problems in automotive payments – like simplifying pay-by-link, automating bank transfers and integrating with dealer systems. Joining Bumper means we can bring these tools and the benefits they deliver to more dealers, faster.”