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Global connected cars are to grow at double-digit CAGR between 2023-2027

The latest publication of Germany-based market intelligence firm yStats.com, “Global In-Car Payment Market and Trends 2023”, summarizes the emerging trends and developments within the in-car payments and mobility payments market. Some important highlights of the report include forecasts of the connected car solutions market size, the number of connected cars, and the number of in-car payments made. The report also gives comprehensive information about the various service offerings and initiatives that OEMs and other stakeholders across the value chain are offering.

The in-vehicle payments market is expected to experience growth between 2021 and 2026 due to several collaborations taking place among OEMs, payment companies, tech companies, and others

The gradual shift of consumers towards virtual solutions and digital commerce has led consumers to embrace the idea of in-car commerce, where they can comfortably order goods and services from their own cars. This trend has further accelerated the growth of in-car payments, especially for services such as fuel payment, EV charging, ordering at a drive-through, and parking payment, among others. The growth of in-car payments has also been boosted by the rise of connected cars and their adoption. The connected car solutions market is forecasted to reach close to EUR 145 billion by 2030, with the number of connected cars in service surpassing 300 million as of 2027, as revealed by the new yStats.com report. With the connected car landscape witnessing such a growing trend, the number of in-car payments is expected to surpass 5 billion by 2026.

With the increasing demand for in-car payments, various stakeholders across the value chain, such as tech companies, OEMs, payment giants, fuel companies, and car parks, are coming together to offer advanced in-car payment solutions to their customers. For instance, Hyundai launched the Ioniq 5 car model, enabling car owners to find and pay for parking from their car. Additionally, Skoda in Europe introduced the Pay to Park system, allowing drivers to pay for parking fees from the app or the car. Not only are OEMs entering the in-car payments landscape, but tech companies such as Google and Apple have also launched their in-car solutions, such as Apple CarPlay, to allow users to make payments via the car dashboard. Apple CarPlay currently enables users to pay for EV charging and order food at a drive-through, with the company revealing its plans to allow users to find a gas station via the app, refill the car through the screen, and pay for the refueling through the car’s infotainment system.

The popularity of in-car payments has witnessed significant growth in China

The trend towards using in-car payments is rising in several Asian nations for a range of activities, such as parking fee payment, fuel payment, EV charging, among others. Nevertheless, compared to its European counterparts, the Asia-Pacific region has a lower number of partnerships and collaborations among players to introduce innovative solutions. However, in-car payment solutions in China have gained traction among drivers, especially the younger generation, for whom the ability to make in-car payments is highly desirable, as cited in a survey from the new yStats.com report. Consumers in China are favoring cashless payment methods for parking, fuel payment, among other services, which has further accelerated the growth of in-car payment solutions. Several partnerships have also come to light, such as Park Zhigang and ETCP enabling users to pay for parking via QR-code-based payment or the in-car password-free payment method, available across 60 cities in China. Another partnership is between Parkopedia and Desay SV, facilitating the use of the in-vehicle QR code parking payment system.