In-vehicle payments space set for major growth

The value of in-vehicle payments will hit $86 billion in 2025, up from $543 million in 2020, according to Juniper Research.

This growth will be driven by increased partnerships which are improving the availability of services, particularly in the fuel and smart parking segments.

Juniper Research is also calling for established payments vendors to be included within collaborative ecosystems, to ensure that requirements such as security via tokenisation and integration with digital wallets are achieved effectively. If these elements are ignored, many initiatives will fail to achieve widespread adoption, it argues.

Fuel and electric vehicle charging payments will be the leading area for in-vehicle payments adoption, accounting for 77% of payments by value in 2025. This will be largely due to the high number of anticipated future partnerships in this area, as well as the ease of migrating existing mobile payment solutions into in-vehicle systems.

Voice commerce will also have a major role to play. The increasing integration of voice assistants within the vehicle’s systems, not just via smartphone mirroring, will enable drivers to make e-commerce purchases from behind the wheel in a seamless way.

This will drive other in-vehicle payments, including e-commerce, food and drinks to over $11 billion in 2025, from just $12 million in 2020.