In-car payments spend to exceed USD 86 bln in 2025

Monday 21 September 2020 11:53 CET | News

A new study from Juniper Research has found that the value of in-car payments, where a payment is made via embedded vehicle systems, will reach USD 86 billion in 2025, up from just USD 543 million in 2020.

The report recommended that, in order to support this growth, established payments vendors must be included within collaborative ecosystems, to ensure that requirements such as security via tokenisation and integration with digital wallets are achieved effectively. These elements will be critical in establishing in-car payments as a viable channel and, if ignored, will likely see initiatives fail to achieve widespread adoption.

The new research, In-vehicle Payments: Adoption, Vendor Positioning & Market Forecasts 2020-2025, found that fuel and electric vehicle charging payments will be the leading area for in-car 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-car systems.

The research found that voice commerce will be a major supporting factor in the in-car payments market. The increasing integration of voice assistants within the vehicle’s systems, not just via smartphone mirroring, will enable drivers to make ecommerce purchases from behind the wheel in a seamless way. This will drive other in-car payments, including ecommerce, food and drinks to over USD 11 billion in 2025, from just USD 12 million in 2020.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: in car-payments, Juniper Research, report, Voice Commerce
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce