The traditional world of mobility payments is undergoing a remarkable evolution, and at the heart of this transformation lies the concept of turning your car into a digital wallet. This novel idea allows drivers to seamlessly make payments for a variety of services, from parking and refueling to electric vehicle (EV) charging, all through the convenience of their vehicle. The impact of this shift towards in-car payments is not to be underestimated, as it brings with it a host of benefits and is rapidly changing the payment landscape on a global scale.
Driving Factors Behind In-Car Payments
Several key factors are propelling the rise of in-car payments:
- Technological Advancements: The widespread availability of cutting-edge technologies, such as 5G, has paved the way for the rapid deployment of in-car payment solutions, making them accessible to a broader audience.
- 2026 Projections: Our recent report, “Global Mobility Payment Solutions Market and Trends 2023,” cites projections that by 2026, the number of in-car payments will surpass a staggering 4 billion.
- The Era of Connected Cars: With an increasing number of consumers gravitating towards connected vehicles, the connected car solutions market is expected to exceed EUR 140 billion by 2030. In fact, a survey conducted in Q4 2022 found that more than half of the respondents considered in-car payment a crucial feature of connected cars.
Benefits Galore for OEMs and Consumers
The allure of in-car payments extends to both Original Equipment Manufacturers (OEMs) and consumers alike:
- Consumer Convenience: In-car payment solutions offer unparalleled ease and comfort to users, simplifying their daily transactions.
- Unlocking Revenue Streams: For OEMs, these solutions provide an opportunity to establish additional revenue streams while boosting brand loyalty.
- New Avenues for Innovation: The introduction of in-car payments sparks innovation, enabling OEMs and payment companies to explore exciting new business models centered around this technology.
Going Beyond the Basics: Exploring Innovative Use Cases
In-car payments have transcended traditional applications and now encompass unexpected areas, including drive-through services. In North America, fast-casual restaurants are at the forefront of implementing in-car payment options, thus expanding their customer base. For instance, the collaboration between MrBeast Burger and Mavi.io, an in-car order and payment provider, enables drivers to make payments directly through their vehicles when placing food orders. Similarly, renowned fast-food chains like Panera Bread and BurgerFi allow customers to seamlessly place orders and make payments from the comfort of their cars.
Integrating In-Car Payments for Toll Payment
The integration of in-car payments for toll payments is making steady progress:
- Europe: The European Electronic Toll Service is actively working towards enabling drivers to utilize in-car payments for tolls, streamlining their journey further.
- United States: A partnership between Parkopedia and Uproad, a mobile toll payment system, has resulted in contactless toll payment directly from vehicles.
A Global Phenomenon: In-Car Payments in Asia-Pacific
In-car payment services are rapidly gaining traction across the Asia-Pacific region, with China leading the way. The younger generation in China shows a strong preference for cashless payments, even for services as seemingly mundane as parking fees. Collaborations like the one between Park Zhigang and ETCP have introduced QR code-based or password-free in-car payment systems for parking fees across 60 Chinese cities. Additionally, Porsche owners in Australia now have access to the Access and Pay service via the Porsche Park App, enabling them to locate and pay for parking spots in a hassle-free, contactless manner.
In Conclusion: Embracing the Future of Payments
As commuters increasingly place their trust in the convenience of in-car payments, the global landscape of automotive payments is undergoing a significant transformation. The trend towards in-car payments is poised to redefine traditional payment methods, with consumers enthusiastically embracing cashless options for an array of services, from parking and refueling to EV charging. The future of payments is here, and it’s centered around the convenience and innovation of in-car payments.