Digital Payment Systems: Monetization Engines for Connected Cars
Back then, when carmakers asked their customers "What turns a car into an experience?" – they could easily predict some of the answers:??
Cars and Digital Transformation: What Customers Expect Today?
Today's customers are more demanding than just that. They want their car to reach beyond mere style and driving utility. They want their car to be smart and web-enabled. To be the car of the future.
And the future is now. For this year, ABI Research estimated connected vehicle sales to increase by 20%. After that, we can expect a compound annual growth rate of around 10% each year, according to their study
And where there is growth, there is demand. As of 2020, at least 47% of European customers told researchers they would switch car brands to gain web-enabled features accessible via car computer or mobile platform. This development opens a new area of operation and innovation: Forward-thinking car manufacturers can outrun their competitors by offering digital services with value and on-point design.
Payment Systems: The Monetization of Connected Car Platforms
Connected cars can communicate with external e-commerce applications and service platforms. The integration of those apps and services is accompanied by technical requirements and challenges. One of the most pressing: Offering a functional and secure in-car wallet and payment system.?
Let's look at some sample applications, where payment processing in connected cars is crucial.?
Use Cases: Where Automotive Payment Technology Is Applied
Toll and Penalty Payments?
Equip your connected car’s e-wallet to pay tolls automatically when it crosses the border. During traffic controls, officers can recall the car wallet’s toll status – no stickers needed. And if penalties are charged due to motoring offences, they can be settled on the spot.
Paid Car Utilities
Your customers want increased horsepower in their electric cars? Allow drivers to unlock additional services for a fee (like increased e-car speed or heated seats in winter only).
Subscription Models?
Offer subscription-based services for music and audiobooks, GPS, or parking space, settled by the in-car payment system in regular intervals.
Repair Services?
Have your customers pay for repair bills easily on your automotive payment platform. Perhaps you also want to offer discounts with partnered auto shops. You might even let the car itself pay the bill directly to the shop.
Rent-A-Ride
Allow users to connect their mobile devices to the rental car computer to start it. The e-wallet inside the car calculates the payment amount based on the distance travelled and automatically collects the funds from the user’s wallet. And once autonomous cars frequent the streets, users could simply call and pay one via an app.
Your Choice: Finding the Right Payment Solution
Now we have arrived at the question of how to best address the use cases above (or the even better ones your company has already fleshed out and is eager to implement).
Basically, you have two options here: A singular Turn-Key Payment System offered by an external party or an In-House Payment Solution, which you as a company have complete control over, but also have responsibility for – regarding development and operation.
We have compared both options on the trimplement blog and provide additional information on automotive payments.
And if you want to cut to the chase and already are searching for a software development partner with years of experience in the payment and banking industry, we are there for you as well.
But before you drive into the sunset, we leave you with something to think about:
What makes a car a good experience in your opinion?