Pairpoint, an advocate for the Economy of Things, has unveiled a market study produced by STL Partners, examining the potential of in-car payments. The report, titled ‘Fuelling the Future: The $580 Billion In-Car Payment Opportunity’, highlights the transformative role of vehicle connectivity in reshaping the automotive industry. According to the study, the global in-car payments market is projected to exceed $580 billion by 2030, with an annual growth rate of 130% from 2023 to 2030. Additionally, the connected vehicle market is anticipated to grow from 430 million to 895 million vehicles during the same period.
In-car payments are among the most significant innovation in this sector, enabling drivers to conduct secure, automatic transactions via their vehicle’s software. This technology aims to revolutionise the driving experience, offering services such as pay-as-you-drive insurance, remote vehicle monitoring, real-time information for drivers, and automatic emergency assistance. A key benefit is the ability to make payments directly from the car, eliminating the need for physical cards or mobile apps, with applications including fuel, electric vehicle (EV) charging, and parking.
The study forecasts that the majority of the market will consist of payments for automotive services like parking and EV charging (70%), e-commerce transactions for goods such as food, drinks, and entertainment (25%), and other functionalities (5%).
Additional key findings:
- The in-car payments market is expected to experience a tipping point within the next five years, with exponential growth anticipated, reaching $580 billion by 2030
- Rapid adoption of technologies such as SIM-based vehicle identification, biometric authentication, artificial intelligence (AI), blockchain, payment wallets, Near Field Communication (NFC), advanced connectivity, and Cloud tokenisation will enable a more seamless and secure in-vehicle payment experience
- In-car payments will offer a more efficient, secure, and user-friendly alternative to traditional payment methods
“Advanced connectivity is a catalyst for new ways of interacting with modern vehicles. Adding native payment functionality will allow for more secure, real-time, automatic usage of day-to-day services such as parking, EV charging, re-fuelling and more” explained Jorge Bento, Chief Executive Officer of Pairpoint. “At Pairpoint we are are dedicated helping lend our technology to help build a robust partner ecosystem, driving both adoption and scalability.”
The study stresses the importance of a wide-ranging collaborative ecosystem for the success of in-car payments. It urges the automotive sector and telecom operators to prioritise partner integration, process automation, and secure systems to minimise transactional risks.
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