Global In-Car Payment Market and Trends 2023

Global In-Car Payment Market and Trends 2023

With the growing demand for in-car payment solutions, the forecasted number of in-car payments is set to exceed 4 billion by 2026: new yStats.com report.

The global in-car payments market is forecasted to flourish, driven by several collaborations among different stakeholders

With consumers worldwide shifting towards cashless payments, the demand for in-vehicle solutions has also undergone a change. The comfort and convenience of making purchases while sitting in the car have further boosted the growth of in-car payments, enabling commuters to pay for parking fees, tolls, fuel, and other services directly from their cars. Thus, the direct payment option is integrated into the vehicle, and the driver authorizes the payment through various verification techniques, ranging from fingerprint authorization to iris recognition. According to a new report from yStats.com, the rising adoption of in-car payment solutions is expected to surpass 5 billion transactions by 2026. This growth has also accelerated partnerships among various players, such as tech companies, original equipment manufacturers (OEMs), payment giants, fuel companies, and car parks.

One example of an OEM offering in-car payment is Hyundai, which launched the Ioniq 5 car model, enabling car owners to find and pay for parking from the car. Similarly, Skoda in Europe introduced the Pay to Park system, facilitating drivers to pay for parking fees from the app or the car. Apart from OEMs, tech companies are also exploring the in-car payment market, with Apple offering Apple CarPlay that allows users to make payments via the car dashboard. Currently, Apple CarPlay enables users to pay via in-car payments for EV charging and ordering food at a drive-through. The company has revealed its plans to expand this service 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 in-car payment market is witnessing different growth patterns across regions, with Europe taking the forefront

The trend towards using a car as a wallet for parking payment, fuel payment, and EV charging payment is rapidly growing in Europe. The European Electronic Toll Service is also taking initiatives to enable toll payments using in-car payments. Several stakeholders, such as payment companies, OEMs, and parking companies, are committed to offering in-car payment solutions. For instance, Apcoa, a car park in Europe, offers its customers the option to use contactless payment solutions via the infotainment screen of the car. Furthermore, BMW has partnered with Parkopedia to allow car owners in Austria and Germany to find and pay for parking via the car navigation screen or the My BMW app, according to the new yStats.com publication. Similarly, Mercedes has partnered with Visa, enabling users to pay for parking fees via in-car payments across 14 European nations.

With the growing adoption of in-car payment solutions, nearly half of surveyed drivers in Germany indicated their willingness to pay directly via the car display as of September 2022. Moreover, close to three-quarters of drivers showed a preference for using in-car payments for parking fee payments and refueling cars or charging EVs during the same time.