In-vehicle Payment Services Industry Overview
The global in-vehicle payment services market size is expected to reach USD 14.43 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 13.2% from 2022 to 2030. The aggressive spending by automakers on enabling drivers to make payments and authenticate transactions from the vehicle itself coupled with the rising levels of disposable income, especially in the developed economies, and the growing preference for contactless payments are expected to drive the growth of the market over the forecast period.
Busy schedules are prompting drivers to look forward to hassle-free experiences as part of an upgraded lifestyle. At this juncture, the ability to shop, order, and pay on the go without performing any cash transactions for swiping credit/debit cards would allow commuters to save time and ensure a convenient commute. In-vehicle payment services offer drivers and passengers the convenience of making payments through various payment modes from the vehicle itself. The demand for In-vehicle payment services is expected to increase over the forecast period in line with the proliferation of connected cars and the growing preference for advanced infotainment.
Automakers, such as BMW AG, Mercedes-Benz, Ford Motor Co., Honda Motor Co. Ltd., General Motors Co., and Jaguar Land Rover Automotive PLC, have already started integrating in-vehicle payment services and solutions into their vehicle models. Payment service providers, such as MasterCard, Visa, and PayPal, are also striking strategic partnerships and collaborations with automotive OEMs to deliver efficient in-vehicle payment platforms.
The preference for contactless payments is growing in the wake of the outbreak of the COVID-19 pandemic. As such, the majority of the parking systems, gas stations, and toll collection booths have already incorporated mobile payment technology. The popularity of e-wallets is rising owing to the convenience and ease of payment e-wallets can offer. Digital wallet and online payment platforms, such as Google Pay, Amazon Pay, and Apple Pay, are also getting immensely popular and their adoption is expected to increase significantly over the forecast period.
However, automotive OEMs are looking forward to designing and developing a payment ecosystem that would allow drivers and passengers to avail and pay for all the desired services, such as filling gasoline or charging electric cars, booking and paying for parking slots, paying tolls at toll booths, and ordering food and coffee, among others, without having to get out of the vehicle. Hence, the market for in-vehicle payment services is expected to grow significantly over the forecast period.
In-vehicle Payment Services Market Segmentation
Grand View Research has segmented the global in-vehicle payment services market based on mode of payment, application, and region:
Based on the Mode of Payment, the market is segmented into NFC, QR Code/RFID, App/e-wallet, and Credit/Debit Card.
- The credit/debit card segment accounted for the largest market share of around 53% in 2021. Debit cards and credit cards remain the most popular payment modes and are used extensively to make contact and contactless payments. The growing preference for card and cardless transactions and post cash transactions among individuals belonging to various age groups is expected to contribute to the growth of the market over the forecast period.
- The app/e-wallet segment accounted for a significant share of the market in 2021 and is anticipated to register a CAGR of 14.2% from 2022 to 2030. The rising popularity of digital paymentmethods and the convenience and ease associated with wallet payments are particularly encouraging individuals to adopt in-vehicle payment services, thereby contributing to the growth of the market.
Based on the Application, the market is segmented into NFC, QR Code/RFID, App/e-wallet, and Credit/Debit Card.
- The food/coffee segment accounted for a significant revenue share of around 27% in 2021. The preference to order coffee and food while on the way to workplaces, offices or other destinations is growing among passengers and drivers. Drivers have realized that waiting for buying food and coffee would not be possible due to the growing traffic.
- The data published by OICA revealed that the sales of commercial vehicles in China increased 18.7% over the year in 2020. The increasing number of passenger and commercial vehiclesdrive the demand for parking spaces. Adapting in-vehicle payment services in the parking spaces will assist in reducing long queues at these spaces.
Key Companies Market Share Insights
The prominent market players that dominated the market for in-vehicle payment services in 2021 include Ford Motor Co., Honda Motor Co. Ltd., General Motors Co., Volkswagen AG, among others. These players are putting a strong emphasis on developing payment solutions in partnership and collaboration with various payment solution providers. Meanwhile, Google and Amazon have also introduced devices that can be coupled with the vehicle console using voice control to help in shopping, navigation, accomplishing other tasks, and paying for various services through different payment gateways. Some of the prominent players operating in the global in-vehicle payment services market are:
- BMW AG
- Daimler AG
- Ford Motor Co.
- General Motors Co.
- Honda Motor Co. Ltd.
- Hyundai Motor Co.
- Jaguar Land Rover Automotive PLC
- Volkswagen AG
- ZF Friedrichshafen AG
- Amazon
- Visa
- MasterCard
- PayPal
Order a free sample PDF of the In-vehicle Payment Services Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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