U.S. Bank made a pair of moves last week geared to boost its position in automotive with dealerships and OEMs.

First, U.S. Bank said it is launching redesigned BMW, MINI and BMW Motorrad Mastercard credit card products that offer cardholders enhanced rewards value, integrated with their BMW experience, and payment flexibility.

Those products can help consumers convert rewards earned on their everyday spending into the purchase or lease of their next BMW.

Next, U.S. Bank announced a collaboration with Updation, an artificial intelligence-powered accounts payable, vendor management and contract management platform built for automotive dealerships.

The collaboration can help dealers streamline financial operations and manage payments more efficiently. Updation serves automotive, truck, RV and powersports dealerships, helping them automate invoice processing, improve visibility into spending and reduce manual administrative work.

As part of the collaboration, Updation will use U.S. Bank Embedded Payment Solutions, including a for-benefit-of (FBO) account structure. The structure can allow funds to be securely held and moved through a bank-managed framework, helping dealerships benefit from stronger controls and reducing the need for Updation to directly handle customer funds.

The companies said the combined solution can allow dealerships to better manage invoices, vendor relationships and payments from a unified environment while benefiting from bank-led payment infrastructure and greater transparency into the movement of funds.

“We built Updation to help dealerships gain better control over their financial operations and spend less time on manual processes,” Updation chief executive officer Layton Judd said in a news release.

“Working with U.S. Bank allows us to bring AI-powered accounting intelligence, workflow and payments together in one platform, backed by trusted banking and payment infrastructure. Together, we’re giving dealerships better visibility into their financial operations while making the movement of money faster, easier and more secure,” Judd continued.

U.S. Bank Embedded Payment Solutions are designed for platforms, fintechs and enterprises seeking to integrate payment capabilities directly into their software environments.

The solutions combine account services, payment rails and risk management technology to support a broad range of payment types — including instant payments — while allowing companies to maintain ownership of the end-user experience.

“Dealerships are looking for ways to reduce manual processes and improve visibility into their finances,” said Joe Voica, head of embedded payments at U.S. Bank. “Through this integration, Updation clients will be able to move beyond certified checks and access modern payment options, including real-time payments, through a secure bank-led infrastructure.

“That creates a faster, more efficient payment experience for dealerships while giving Updation a meaningful competitive advantage in the marketplace,” Voica went on to say.

U.S. Bank and BMW Financial Services North America launch expanded benefits

Meanwhile, the bank and captive said new and existing BMW, MINI and BMW Motorrad Mastercard credit card holders are rewarded for their customer loyalty with premium credit card benefits and exclusive offers.

When BMW, MINI or BMW Motorrad customers enroll their eligible loan or lease, any points are worth double when applied to that loan or lease. For example, that means 10,000 points are worth $200 when applied toward a BMW Financial Services loan or lease instead of $100.

Card holders also can earn triple rewards for every dollar spent on BMW purchases and double points value for redemption at BMW dealerships. Eligible cardholders can take advantage of a special six-month ExtendPay installment payment plan with no fees or interest when paying for BMW, MINI or BMW Motorrad sales and services. The card also has a first-time use bonus of 10,000 points, when $500 is spent within the first 90 days, and 0% on eligible purchases and balance transfers for the first 12 billing cycles.

Among other benefits are:

—Expanded and simplified rewards including 3X per $1 spent on BMW, MINI and BMW Motorrad purchases and eligible gas station, EV charging station purchases and on tollway charges.

—0% introductory APR on purchases and balance transfers for 12 billing cycles. After that, a variable APR, currently 17.74%-30.74%.

—No annual fee.

—Accelerated 2X points value for redemption at BMW, MINI and BMW Motorrad dealerships.

—BMW Card Extend Pay always-on offer of 6 months with no fees or interest for BMW purchases for eligible cardholders.

—BMW, MINI and BMW Motorrad Auto Sweeps points redemption towards your customer loan or lease payments.

—Dollar for dollar points system continues for all other purchases.

“BMW is the leading premium automotive brand that has created fierce loyalty with its customers. U.S. Bank’s upgraded BMW-branded credit card is designed to reward this loyalty,” said Tanuj Suri, head of co-brand cards at U.S. Bank. “Our compelling new card benefits enable BMW customers to earn rewards rapidly when they make everyday purchases, but especially for BMW purchases.

“Those rewards multiply when used for BMW products and services, including the ability to automatically apply rewards against a BMW Financial Services loan,” Suri continued.

BMW Financial Services North America president and CEO Ole Jensen added, “BMW Financial Services is an important part of the overall customer experience, and we are always looking for new ways to deliver greater value and flexibility to our customers.

“These enhanced card benefits make it easier for customers to turn their everyday spending into meaningful rewards they can use – from purchases and service at our dealerships, to their BMW Financial Services loan or lease,” Jensen went on to say.