A new forecast finds the in-car payment market will grow significantly. PTOLEMUS’ Connected Vehicle Payments Global Study predicts 600 million vehicles will generate in-car transactions totaling half a trillion dollars by the end of the decade.
“This supply-driven market will see OEMs offer their customers payments for greater convenience, a cashless experience and enhanced customer relationships and retention,” said PTOLEMUS in a statement on the research.
PTOLEMUS said it expects the v-commerce market to be dominated by fuel and parking payments. However, strong growth will also be generated by content subscriptions, software updates, EV charging, food and beverage and grocery purchases.
“The revenue potential for v-commerce is considerable for both OEMs and vertical market players. In-car payments exist already in the aftermarket today, but our research finds that 17 car makers are already developing embedded payment solutions. Furthermore, Covid-19 is triggering a take-off in electronic payments, which OEMs can benefit from,” said Andrew Jackson, a research director with PTOLEMUS Consulting Group.
PTOLEMUS’ report analyzes the strategy of 17 OEMs that are developing a connected car payment program, including Audi, Daimler, FCA, GM, Hyundai and Tesla. The group says Honda’s Dream Drive, Mercedes Pay and Volkswagen Pay are a few examples.