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The controversy of in-car payments has been recently a trending topic in the world of technological novelties. It seems that the use of cars as a tool for mobile payments is the unavoidable future, and even the present…
Most of us thinking about modern cars from the future, do not think of them as a mobile transaction platform, but thanks to the technological progress of in-car payments and digitalization, cars may soon become our new “wallets”.
Source: Image generated with AI
So what does the concept of in-car payments mean? In-car payment services give you the opportunity to pay on the go, from the comfort of your own vehicle, without the need of using a physical credit/debit card and sticking it out the window to complete a transaction or stop and take out your phone with a card, which slows down the payment process.
The automotive industry is still developing its products also in the world of the Internet. Car producers from all over the world are willing to implement modern IT solutions to make their products more attractive. On February 14, 2017 Jaguar launched the world's first fuel payment system. From April 2015, payments can be made via an app on vehicles such as the Jaguar XE, Jaguar XF and Jaguar F-PACE. Recently, Hyundai Motors, Renault Samsung Motors and Mercedes announced the possibility of in-car payments for their customers. In the Mercedes example, the Mercedes Pay application is built in. The application can be used to pay for parking and fuel at HEM network stations (in Germany, the payment is accepted by about 400 HEM stations).
Touchscreen for payments in a Jaguar car
Also, large companies such as Visa, MasterCard or PayPal respond to proposals for cooperations with car manufacturers in order to make and integrated in-car payment system. An example of such a collaboration is Visa and Honda, in 2019, which presented a product called Honda Dream Drive, which allows you in-car payments for fuel, parking and food services.
In-car payments are getting more and more popular and according to an industry report from Grand View Research, the global in-car payment market is expected to grow exponentially by 2030. Below is a breakdown of the size of the in-car payment market by type.
The size of the in-vehicle payment services market in 2020-2030
Source: https://www.grandviewresearch.com/industry-analysis/in-vehicle-payment-services-market
What does the in-car payment system allow and will allow the user to do? In-car payments offer many possibilities, users will be able to use automatic payments for parking or road tolls. Other facilities are payments for fuel or charging stations as well as payments for catering services from inside your car.
Our every day life is becoming more and more digitized, and an idea of in-car payments is an integral part of it. Every day we are using smart homes, smartphones, smart watches - it is obvious that the next level are smart cars with a connection to the functionalities offered by the Internet.
In Summary, in-car payments do not only open up a new source of revenue for car dealers and producers, but also contribute to customer satisfaction and convenience. In-car payment services will certainly gain much more popularity soon, and their development is unavoidable in the future.
Sources:
https://www.paymenttools.com/en/blog/in-car-payment-when-the-car-pays-for-itself
https://www.ingwb.com/en/insights/innovation/orange-blog/in-car-payments-when-the-car-pays-by-itself
https://www.mercedes-benz-mobility.com/en/what-we-do/payment-services/
https://www.paymentgenes.com/all-about-payments-videos/the-explosive-growth-of-in-car-commerce
https://www.fortunebusinessinsights.com/in-vehicle-payment-system-market-103653
https://fintechmagazine.com/articles/could-in-vehicle-payments-be-the-next-payments-frontier
https://www.grandviewresearch.com/industry-analysis/in-vehicle-payment-services-market