In-Vehicle Payment Services Market Size By Mode of Payment (Wallet, and Debit/Credit Card), Application (Fueling/EV Charging, Smart Parking, Automated Toll Payments, E-commerce), COVID-19 Impact Analysis & Forecast, 2022 - 2028

In-Vehicle Payment Services Market Size

In-Vehicle Payment Services Market size exceeded USD 600 million in 2021 and is estimated to grow at over 50% CAGR between 2022 and 2028. Increasing demand from vehicle owners for ordering the food & coffee and paying bills at fuel stations and restaurants is likely to drive the industry growth. Also, technological advancements, such as connected vehicle technologies and IoT, are anticipated to support the market demand.
 

The rising demand for more interactive in-vehicle infotainment systems is enabling the automotive manufacturers to integrate the payment and shopping capabilities into their vehicle dashboards. The increasing emphasis on the contactless payments is another factor fueling the industry statistics.
 

The in-vehicle payment service technology is a digital payment technology that allows vehicle owners to purchase goods and services from the vehicle without any payment devices. In-vehicle payment services allow drivers to streamline fund transaction service and increase operational efficiency at fuel stations. In-vehicle payments are the new Human Machine Interface (HMI) trends in automotive.
 

The COVID-19 restrictions across the globe resulted in social distancing and increase in the usage of contactless payments to avoid any potential exposure to coronavirus. This has created more opportunities to adopt the in-vehicle payment services. Many restaurants and cafes have used the in-vehicles payment services to ensure contactless delivery during this pandemic.

In-Vehicle Payment Services Market Analysis

Debit/credit card payment segment held around 55% of the Canadian in-vehicle payment services market share in 2021 led by the popularity of debit/credit card and extensive use to make contactless payments. Leading automotive manufacturers are focusing on partnerships; General Motors partnering with Mastercard and IBM, Honda motors partnering with Mastercard Visa and PayPal. These players are working toward developing a strong in-vehicle payment ecosystem to allow consumers make payments hassle-free across parking slots, restaurants, toll stations, and gas stations.
 

The market growth of debit/credit card mode of payment is also attributed to the large penetration debit and credit cards in the country. As it is one of the most commonly used payment methods among consumers to make online purchases. Moreover, the presence of multinational companies, such as MasterCard, Maestro, American Express, and Visa, ensures a safe payment process between vendors and issuing banks through payment processing solutions.
 

The smart parking application using in-vehicle payment services in the UK is projected to witness 45% gains through 2028 due to the growing number of passenger vehicles across the country. The growing adoption of in-vehicle payment services in the parking spaces is assisting in reducing long queues at these spaces. In-vehicle payment services offer flexibility and high level of convenience.
 

North America in-vehicle payment services market is estimated to generate about USD 2 billion revenue by 2028 on account of the high investments by automotive manufacturers in the auto-technology. The supportive government initiatives also act as a major driver for connected car growth in the region. The regional governments are investing in developing their road & telecom infrastructure to help connected cars to communicate with their surrounding environments in a better manner. The well-established automotive industry in North America is positively influencing the demand for in-vehicle payment services.
 

In-Vehicle Payment Services Market Share

Some of the key in-vehicle payment services market participants include:

• BMW AG
• CarPay Diem Cerence Inc
• Daimler AG
• General Motors Company
• Gentex Corporation
• Harman International Industries, Inc
• Honda Motor Company Ltd
• Hyundai Motor Company
• Jaguar Land Rover Automotive PLC
• Mastercard Inc
• Telenav Inc
• ThinxNet GmbH
• Visa Inc
• Xevo Inc 
• ZF Friedrichshafen AG.
   

Companies are emphasizing on partnership network to upgrade their product portfolio. For instance, in May 2021, Visa signed a partnership agreement with Daimler to integrate biometrics solutions to enable in-vehicle payments. This partnership helped the company to offer innovative solutions to its customers and acquire a competitive position in the market.
 

This market research report on in-vehicle payment services includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2028, for the following segments:

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Market, By Mode of Payment

• Wallet
• Debit/Credit Card

Market, By Application

• Fueling/EV Charging
• Smart Parking
• Automated Toll Payments
• E-commerce
• Other

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia