How does SimplePay's pricing and fee structure compare to existing competitors in the embedded payments space? | CDK (Aug 06, 2025) | Candlesense
CDK

How does SimplePay's pricing and fee structure compare to existing competitors in the embedded payments space?

Short answer:

The Business Wire release announcing CDK SimplePay does not contain any specific numbers or details about its pricing or fee structure, so a direct, point‑by‑point comparison with other embedded‑payments providers (such as Stripe, Square, PayPal/Braintree, Adyen, or Fiserv / Clover) cannot be made from the information that’s been made public in this news item.

What the press release tells us

Aspect What the announcement says What we don’t know (from this article)
Product type Fully‑embedded, cloud‑based payment solution for dealerships. Exact price tiers, per‑transaction rates, any monthly/annual subscription fees, or fees for other services (e.g., chargebacks, refunds, PCI compliance).
Key value propositions “Fast, efficient payments for consumers; greater efficiency for dealerships.” How the cost‑benefit equation stacks up against competitors (e.g., total cost of ownership, ROI).
Target audience Automotive dealers (original equipment manufacturers, franchised and independent shops). Whether pricing is differentiated by dealer size, volume, or type (new‑car vs used‑car, finance vs L&A).
Competitive positioning Implied “simpler, faster, more secure, and scalable” than existing solutions. Exact features or pricing that make the claim “cheaper,” “more transparent,” or “more flexible” than rivals.
Implementation Cloud‑based, fully embedded within dealer’s existing software stack. Any “pay‑as‑you‑go” or “flat‑rate” pricing models that might be distinctive.

Because none of those fields contain pricing data, we can’t tell whether CDK’s “Simple” in SimplePay refers only to the user experience or also to a simplified cost structure, nor can we assess whether the solution is:

  • Flat‑rate per transaction (e.g., 1.5% + $0.10 per transaction) – a common model for many SaaS‑enabled payment processors.
  • Tiered or volume‑based (e.g., lower per‑transaction fees for higher volumes, which is typical for large‑dealer groups).
  • Subscription‑based (a fixed monthly/annual fee plus a small transaction fee – often used for “embedded” solutions that replace point‑of‑sale terminals).
  • Hybrid (monthly platform fee + per‑transaction fee plus optional add‑ons such as fraud‑prevention, charge‑back protection, or PCI‑DSS compliance services).
  • Free‑up‑to‑a‑certain‑volume, a pricing tactic many “embedded” platforms use to attract early adopters.

How you could evaluate SimplePay’s pricing once details are available

Below is a checklist you can use once CDK publishes the actual fee schedule. This can help you see how SimplePay stacks up against the main players in the “embedded payments” arena:

Pricing Factor Typical Industry Practice Questions to Ask for SimplePay
Base Platform fee $0–$199/month (depends on size) Is there a flat monthly or annual subscription? Does it differ by dealer size or platform integration depth?
Transaction fee 1.4–2.9% + $0.10 per transaction (often lower for high volumes) What % + flat fee does SimplePay charge? Does it vary by card brand (Visa/Mastercard vs. Amex, etc.)?
Interchange‐plus markup Some providers add a 0.20–0.30% markup on top of interchange. Does any markup apply beyond the listed fee?
Volume discounts 2–3 tiers (e.g., <5k = 2.5%; 5k‑20k = 2.3%; >20k = 2.1%). Are there tiered discounts for large dealer groups?
PCI/DSS / compliance Often bundled (no extra charge) or separate $20‑$100/mo. Is PCI‑DSS compliance bundled or extra?
Charge‑back/Dispute handling Often a $0.25‑$0.50 fee per dispute. What are the costs for charge‑backs or dispute resolutions?
Hardware / SDK Usually free for API/SDK; hardware billed separately (or “free” with a transaction minimum). Does SimplePay provide SDKs at no cost? Are any hardware (e.g., card readers) required/charged?
Integration / onboarding One‑time onboarding fee (typical $0–$1,000). Is there a setup or onboarding fee for dealers?
Settlement timing 1–2 business day “instant” payouts sometimes cost extra (0.5‑1% surcharge). Does SimplePay offer faster settlement for a premium?
Revenue share Some embedded platforms share a portion of merchant revenue (e.g., 5% of subscription). Does CDK keep any revenue-share from dealerships?
Contract term Month‑to‑month vs. 12‑month/24‑month contracts (often with discount). Are there contract‑length discounts?

Benchmarking against top competitors (based on publicly known pricing as of 2024–2025):

Provider Typical base fee Transaction fee (average) Common extra fees Notable notes
Stripe / Stripe Connect $0 (No monthly) 2.9% + $0.30 per transaction (lower for volume) Charge‑back ~ $15, 21‑day rolling reserve optional. High‑scale, global, extensive dev tools.
Square (now Block) $0 (no monthly) 2.6%+ $0.10 (swiped) / 3.5%+ $0.15 (online) Hardware cost; no monthly fees.
Adyen Varies, usually $0‑$1000/mo + 0.10%‑0.30% markup. 0.6%‑1% + inter‑change + processing. Custom contracts; often “merchant‑level” pricing.
PayPal/Braintree $0 (no monthly) 2.9%+ $0.30 (in‑person) / 2.9%+ $0.30 (online) Fees for advanced fraud, chargeback.
Fiserv (Clover) $30–$150/month (hardware) + 2.3%+ $0.10 per transaction. Includes hardware, payroll integr. Common in auto‑dealerc​ent world.
Dealer‑centric platforms (e.g., RevPay, Vantiv, EVO) $0–$99/mo + 1.6%‑2.4% + $0.10‑$0.20 per TXN. Often offers integrated “finance/lease” modules.

If SimplePay’s fees sit *below** the industry median of ~2.7% + $0.10–$0.30 per transaction, plus a low‑or‑no‑monthly‑fee structure, it would be positioned as a cost‑competitive option. If it comes with a modest monthly platform fee but reduces per‑transaction cost to, say, 1.9% + $0.15, it would be more attractive to high‑volume dealers.*

How to get the exact numbers

  1. Visit CDK’s product page – they usually publish a “Pricing” or “Pricing Calculator” for dealers.
  2. Ask your CDK account manager – they’ll give you the dealer‑specific quotes (often volume‑adjusted).
  3. Check the “FAQ” or “Technical Documentation” – sometimes the fee schedule is in a PDF in the “Resources” page for partners.
  4. Request a demo – most vendors include a cost‑analysis when you request a sandbox / demo environment, especially for enterprise‑level dealers.

Bottom line

From the article alone, there’s no explicit pricing or fee information for CDK SimplePay, so we cannot make a factual, side‑by‑side comparison with other embedded‑payment solutions at this time.

When CDK publishes the detailed fee structure, you can compare the key components (base fee, per‑transaction fee, volume discounts, and any add‑on costs) against the typical ranges listed above to determine whether SimplePay’s pricing is more competitive, comparable, or higher than the major players currently serving the automotive‑dealer community.

Other Questions About This News

Can SimplePay enable cross‑selling of other CDK automotive solutions to dealers? What is the expected adoption rate among dealerships and the timeline for reaching critical mass? How sensitive is the rollout to macro‑economic conditions and dealer capital availability? How will SimplePay affect CDK's short‑term revenue and profitability? What are the data security and regulatory risks associated with a fully cloud‑based payments solution? How will the market perceive CDK's expansion into consumer‑facing payments relative to its peers? Are there any partnership or integration costs with payment processors that could impact cash flow? What impact could SimplePay have on CDK's forward‑looking earnings guidance and valuation multiples? Will the launch generate incremental transaction‑based fee income and improve CDK's margin profile?