NEW YORK—Credit unions should be paying more attention to the use of in-car payments, according to a study that shows the use of this convenient service is on the rise.
The global automotive payment market is expected to reach over $580 billion by 2030, with this being fueled by 895 million connected vehicles. The market potential will be driven by payments for services such as parking and EV charging (70%), e-commerce platforms for goods and services like food, beverages and entertainment (25%) and additional functionalities (5%), GlobalData said.
Pairpoint, a proponent and solution provider for the Economy of Things, has released a market study developed by STL Partners investigating the market potential of in-car payments.
Additionally, the global connected vehicle market is expected to grow from 430 million to 895 million vehicles over the same period, GlobalData said.
“This technology aims to redefine the driving experience by enabling a wide range of services, including pay-as-you-drive insurance, remote vehicle monitoring, real-time information for drivers and automatic emergency calls. One of the biggest opportunities and benefits identified is the ability to make payments directly from the car without the need for physical cards or mobile apps, including for fuel, electric vehicle (EV) charging, and parking,” GlobalData said.
“Advanced connectivity is a catalyst for new ways of interacting with modern vehicles,” said Jorge Bento, CEO of Pairpoint. “Adding native payment functionality will allow for more secure, real-time, automatic usage of day-to-day services such as parking, EV charging, refueling and more.”