Paying your bills via car, not credit card. Future of payments may be on wheels1 min read . Updated: 25 Sep 2020, 03:26 PM IST
People across the globe will start spending around $86 billion by the year 2025 up from just $543 million in 2020
Payment methods have witnessed a dramatic change in the past decade and the new trends may not stop there. After smartwatches, smartphones, a new study suggests that the next big trend will be on wheels. Cars may become your new credit card in near future.
According to a study by Juniper Research, people across the globe will start spending around $86 billion by the year 2025 up from just $543 million in 2020. The study claims that the dramatic growth will be driven by increased partnerships which are improving the availability of services, particularly in the fuel and smart parking segments.
The report claims that in order to support this rapid growth, established payments vendors must be included within collaborative ecosystems, to ensure that requirements such as security via tokenisation and integration with digital wallets are achieved effectively. These elements will be critical in establishing in-vehicle payments as a viable channel and, if ignored, will likely see initiatives fail to achieve widespread adoption.
Fuel and electric vehicle charging payments will be the leading area for in-vehicle payments adoption; accounting for 77% of payments by value in 2025. This will be largely due to the high number of anticipated future partnerships in this area, as well as the ease of migrating existing mobile payment solutions into in-vehicle systems.
The co-author of the research, Nick Maynard states, “Fuel and charging can be the compelling use case that accelerates the adoption of in-vehicle payments, but to achieve this, industry participants must focus on building collaborative frameworks that boost integration and improve availability."
Voice authentication could be the way to go when it comes to supporting this new mode of payment. The increasing integration of voice assistants within the vehicle’s systems, not just via smartphone mirroring, will enable drivers to make eCommerce purchases from behind the wheel in a seamless way. This will drive other in-vehicle payments, including eCommerce, food and drinks to over $11 billion in 2025, from just $12 million in 2020.