In-vehicle payments, where a payment is made via embedded vehicle systems, is forecasted to grow to $86 billion in 2025, up from just $543 million this year, according to a new study from Juniper Research.
In-vehicle payments automate and simplify several existing payment processes via the vehicle’s onboard systems. The dramatic growth will be driven by increased partnerships, improving the availability of these services particularly in the fuel and smart parking segments.
Juniper said that payment vendors should seek out collaborative ecosystems to ensure security via tokens and integration with digital wallets, which is effective across multiple platforms.
The leading area for in-vehicle payments will be in the segments of fuel and electric vehicle charging payments, accounting for 77% of payments in 2025. This will be a high growth segment also due to anticipated future partnerships in the area of fuel payments and recharging.
“Fuel and charging can be the compelling use case that accelerates the adoption of in-vehicle payments, but to achieve this, industry participants must focus on building collaborative frameworks that boost integration and improve availability,” said Nick Maynard, analyst at Juniper Research.
Voice commerce will also support in-vehicle payments as increasing integration of voice assistants such as Alexa in vehicles’ systems will allow drivers to make e-commerce purchases from behind the wheel without having to pull out a smartphone or wallet. Voice will also help with other in-vehicle payments such as food and drinks to more than $11 billion in 2025, up from just $12 million in 2020.
The full research can be found in the new study In-Vehicle Payments: Adoption, Vendor Positioning & Market Forecasts 2020-2025.
