In-vehicle payments are remittances that are made through vehicle systems without the need for smartphones in the completion of the payments
In-vehicle payment transaction volumes to grow by 5,300% over 6 years. Source: pexels.com
The volume of in-vehicle global payment transactions is set to exceed 4.7 billion by 2026, according to Juniper Research.
This is an increase from 87 million in 2021.
The over 5,300% growth in the next five years comes as a result of the increase in industry collaboration and measures from vehicle manufacturers to reduce the increasing level of fragmentation between in-vehicle avenues. There is a need for remittance vendors to build new capabilities that will enable them to capitalise on this opportunity. The rate of partnerships and acquisitions is set to increase to meet these needs.
North America tops the chances of having the highest in-vehicle remittances by volume. The location is set to have 42% of all global transactions by 2026. This growth comes with a large base of already installed payment-enabled vehicles as well as high partnerships levels. The collaboration among industry participants in the region will be vital in incentivizing user adoption and overcoming fragmentation via loyalty schemes and rewards in the next 5 years.
Over the next 5 years, vehicle fuelling will be the most common use case and will account for approximately 48% of in-vehicle transactions by volume. This growth rate is a natural progression for fuel remittances. The payments journey has evolved from cash, cards to smartphones and now in-vehicle remittances.
To develop more use cases such as fast food and coffee shop pick-ups, stakeholders should look beyond EV charging and fuelling while using existing infrastructure. To explore these opportunities, enabling voice commerce will be pivotal. However, vendors will be required to develop new capabilities.
We’ve reported that Carrefour announced a partnership with Meta.
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