Insights from a captivating interview on Payment Innovation in E-Mobility
Introduction
The ecosystem of e-mobility is evolving at a rapid pace, and one crucial aspect of this transformation is payment innovation. The hosts of Talking Mobility Ran Ding and Dennis Winter had the privilege of conducting a captivating interview with Mareile Eckart?on Payment Innovation in E-Mobility. In this article, we present the key highlights and takeaways from this inspiring discussion, shedding light on the exciting possibilities that lies ahead.
Embracing payment technology trends in e-mobility???
Mobile payment technologies play a significant role in shaping the future of e-mobility transactions. The interview highlighted the transformative potential of payment solutions for mobility, enabling users to manage their charging and payment activities by leveraging technologies as
Mercedes, for example, has introduced a delegated authentication solution with Visa. The car becomes a payment device. With that, two-factor authentication in the car becomes possible [...] the driver can just use a fingerprint to pay in the end.
Seamless e-mobility experience is enabled as payments are automatically processed using stored payment information in the car. Mercedes Benz and Visa are catching up to the integrated solution Tesla had already introduced in 2012 with their Supercharger network.?
Charging and payment: Tesla and other OEMs
The process with an electric Mercedes Benz or other non-Tesla electric vehicles may vary depending on the specific charging station network and the individual car, but here is a general outline:?
Up to this point, the process is very similar to charging a Tesla. The main difference lies in the payment process:?
Some networks or cars may have a slightly different process or offer additional features. It's always best to follow the specific instructions for your car and the charging station network you are using. However, the focus of the car companies stay the same: to provide their customers with best services and user experience.
It's always very important to listen to the customer and focus on their pain points [...] payment technology should enable customers to have easily access to the charging points without any complicated logins or authentication processes.
Key stakeholders driving payment innovation in e-mobility ecosystem ????
Payment innovation could make user experience of EVs more convenient. Creating a well-integrated ecosystem that allows easy access and payment for charging services across different networks and service providers is critical. In the interview, Mareile emphasized the importance of payment innovation in e-mobility ecosystem.?
Ecosystem is always very hard to administer as many different parties are involved. And I see payment innovation here as a crucial enabler to facilitate those very complex processes. [...] We see many payment providers coming up with very innovative solutions around EV ecosystem. For example: Riverty, Deutsche Bank, or Stripe are offering really tailored payment solutions.
Needless to say, Payment Service Providers (PSPs) is not the only important player in the e-mobility ecosystem to creat user-friendly experience. It requires efforts and close cooperation of various Electric Mobility Service Providers (EMSPs) to jointly create and deliver innovative solutions to the market. In the interview, Mareile also illustrated the roles of different key players of e-mobility ecosystem. A few major players would be:?
Based on the data generated by the car around charging activities, the OEMs becomes a marketplace as they could onboard different partners into the entertainment system. This would involve charging providers as well as other service providers that focus on providing goods and services to the driver during charging times.
Recognizing the revenue potential from every transaction made, some OEMs have already taken initiatives to create their own marketplaces. For instance, BMW offers its ConnectedDrive platform, an integrated marketplace that provides access to a range of services and apps, serving as a viable source of income. Similarly, Tesla has built its own App Store, where users can download and access a multitude of applications, including those for entertainment and navigation, thereby creating an additional revenue stream from every user transaction. As we engaged in the discourse with different key players in the e-mobility sphere, one compelling point arose from Mareile's commentary, targeting the unique position of OEMs.?
OEMs have the information about the driving behavior. They are also in the place to develop innovative payment solutions that fit the needs of the drivers.
Charging network/point operators could provide the most fitting and needed technology to the mobility user for better charging experience. For example, it’s very important that, the point-of-sale technology is in the end compatible with avalible payment solutions.?
CPOs play a crucial role because they know the best how this whole EV charging journey works and what their customers need with regards to this charging experience.?
When it comes to payment behavior of the customer, Payment Service Providers are the one to talk to. PSPs understand the needs and pain points during the payment journey, and they have the ability to find a proper payment solution for the customer. For instance, the integration of emerging buy-now-pay-later solutions into e-mobility payment systems could significantly enhance user experience. By incorporating such options, e-mobility platforms could consistently provide users with a comprehensive array of payment methods tailored to their preferences and needs.??
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PSPs are important because they are the closest to the customers around payments.
Governments incentivize EV charging quite a bit, as evidenced by various regulations for EV adoption. In terms of payment, there are also regulatory measures in place. For instance, in Germany, the Lades?ulenverordnung (charging station regulation) ensures that all drivers have the option to pay with their preferred payment method. Another example of government impact on standardization is the implementation of dedicated authentication requirements.?
Regulators put a lot of pressure on the market in a positive way.
Learnings from industry best practices???
In the interview, we’ve not only explored topics as payment innovations and key stakeholders in the ecosystem, but also discussed the best practices to give the audience a sense of the current state of the e-mobility payment market.?
Mercedes Benz and IONITY partnership
Together with the BMW Group, Ford Motor Company, and the Volkswagen Group (including Audi and Porsche), Mercedes-Benz has established the joint venture IONITY. The company′s objective is to lay down the tracks to the most powerful fast charging network in Europe. IONITY has built the largest, fastest, and greenest highway charging network across Europe, open to electric vehicles of all brands. Already today, with Mercedes me Charge, Mercedes-Benz customers can currently access more than 1.2 million charging points worldwide.?
Nuvve
Nuvve introduces an innovative vehicle-to-grid (V2G) technology that empowers EV drivers to monetize their surplus energy. When an EV is not in use and its battery holds excess energy, the Nuvve platform seamlessly facilitates automatic sales to the grid or other customers, leveraging real-time market prices. To ensure utmost security and transparency, a blockchain-based payment system records and settles these transactions. The revenue generated from these sales is seamlessly credited to the EV owner's account within the Nuvve platform, offering a convenient and rewarding way to earn from their EV's energy surplus. With Nuvve, EV drivers unlock the potential to contribute to a more sustainable energy ecosystem while enjoying the financial benefits of their excess energy.?
Source??
KIA and &Charge partnership
Through Kia’s establishment of a partnership with &Charge, an innovative electric vehicle (EV) charging platform that skillfully merges user engagement with added-value services, customers are presented with a unique opportunity to gather EV charging credits, known as "&Charge Kilometres". These credits can be accrued through sharing feedback on the quality of the charging experience and making online purchases from an extensive network of over 1,500 &Charge partner stores. Notably, these accrued "&Charge Kilometres" can then be conveniently used to acquire public charging sessions via the Kia Charge App, thus promoting a sustainable and rewarding customer journey.?
Truck use case
Another typical scenario would be from truck industry. When truck approaches charging station, the truck would have automatically reserved the charging spot so it could charge there without waiting. The driver could order from the truck a coffee that will be automatically brought to the truck. So the driver doesn't have to leave the truck for the payments using authentication via fingerprint.?
In case of a breakdown of a truck, where the truck driver must be authorized by fleet operators to pay for towing service, for example. It makes sense that the truck driver can automatically initiate the payment and is authorized to do that from the truck. The trust lies not only with the driver but also with the truck, which could improve efficiency and benefit truck drivers as well as for the fleet manager.
Thank you note ??
Mareile Eckart is an expert in the innovation process and the development of payment products. With experience working with many major financial players and various OEMs, which made her a perfect guest for Talking Mobility show on payment innovations in the e-mobility sector.??
The interview day with her was inspiring and delightful. It was a privilege for Ran Ding and Dennis W. to sit together with Mareile at Motorworld B?blingen to delve into this cross-industry topic and to explore the possibilities payment innovations holds in the E-Mobility field. We would like to express again our gravitation for her precious time and valuable input.
Stay Connected???
Have you ever thought about how payment innovations shape the e-mobility lifestyle? Do you know the challenges in the EV realm and the solutions payment innovations can provide? Do you want to know about the digital affinity in different markets?
There are other related topics discussed in full video Talking Mobility Episode 03. Stay tuned with mm1’s YouTube channel and subscribe for more clips with further information.?
For a deep dive into the topic, don’t miss the latest mm1 whitepaper from Johannes Eckart, MBA and Oliver C. : “Payment Innovation in E-Mobility” with the link here: https://lnkd.in/ekS2CMSs
Let's leverage the power of innovation and drive the evolution of payment systems in e-mobility to unlock the full potential of this exciting and promising sector.??