The global In-Vehicle Payment Services Market is estimated to be valued at US$ 6.28 Bn in 2023 and is expected to exhibit a CAGR of 17.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
In-vehicle payment services provide easy, secure, and convenient payments directly from vehicles. It allows drivers to pay for services such as ride-hailing, food delivery, fuel purchase, toll payments and parking directly through their vehicle’s infotainment system or head unit display.
Market key trends:
One of the major trend in the in-vehicle payment services market is growing adoption of digital wallets. Digital wallets are gaining high traction across the globe as they provide easy, secure and instant payment compared to traditional cash or card payments. Many leading digital wallet providers are partnering with automakers to integrate their digital wallets into vehicle infotainment systems. For instance, in 2022, Ford partnered with digital payments platform PayPal to enable customers to pay for goods and services directly from their vehicle dashboards using digital wallets like PayPal and Venmo.
SWOT Analysis
Strength: In-vehicle payment services enable contactless and secure payments directly from vehicles, providing enhanced convenience to customers. This is driving greater adoption.
Weakness: Security and privacy concerns still persist around using connected vehicles for payments. Hackers can potentially breach vehicles to access payment and personal user data.
Opportunity: Rising sales of luxury and premium vehicles that offer inbuilt connected technologies provide an opportunity to deploy in-vehicle payment services. Many new vehicle models are factory-fitted with payment solutions.
Threats: Stiff competition from alternative contactless payment methods like mobile wallets and contactless cards threatens the growth of in-vehicle payment services. Customers may prefer carrying just their mobile phones.
Key Takeaways
The global In-Vehicle Payment Services Market Share is expected to witness high growth, exhibiting a CAGR of 17% over the forecast period, due to increasing demand for contactless payment solutions from automakers and technology firms.
Regional analysis
North America dominates the global in-vehicle payment services market currently, owing to the large presence of automotive technology companies and the rising adoption of connected vehicles in the region. Asia Pacific is expected to grow at the fastest pace during the forecast period due to the increasing production and sales of luxury and premium vehicles fitted with advanced connectivity and infotainment systems especially in China and India.
Key players
Key players operating in the In-Vehicle Payment Services market are BMW Group, Mastercard, Daimler Ag, Amazon, Ford Motor Company, Volkswagen Ag, Honda Motor Co., Ltd., General Motors Company, and Hyundai Motor. BMW Group and Volkswagen Ag have integrated their in-vehicle payment platforms with major tech giants like Amazon to facilitate in-car purchases.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it