Pairpoint Research Reveals Potential of In-Car Payment Market Could Reach $580billion by 2030

Consumers are always on the hunt for a simpler, more seamless payment method. However, it must completely uproot payments as they know it, otherwise, they are likely to stick with what they are already comfortable with. One such payment method that could change the market is in-car payments. New research from Pairpoint, the proponent and solution provider for the Economy of Things, explores this technology.

In its report, Fuelling the future: the $580 billion in-car payment opportunity, Pairpoint reveals that the in-car payment market could reach more than $580billion globally by 2030. This would be achieved through an annual growth rate of 130 per cent from 2023 to 2030. Furthermore, the report finds that the global connected vehicle market is expected to grow from 430 million to 895 million vehicles over the same period.

Working with STL Partners, Pairpoint hones in on the fundamental role of connectivity in transforming the automotive industry. The tech that enables payments plays a critical role in connectivity as it opens users up to a wide range of services. These can include pay-as-you-drive insurance, remote vehicle monitoring, real-time information for drivers, and automatic emergency calls.

One of the biggest opportunities and benefits identified is the ability to make payments directly from the car without the need for physical cards or mobile apps. This will be particularly helpful when paying for fuel, electric vehicle (EV) charging, and parking.

Breaking down the numbers, the study reveals that 70 per cent of respondents think that the tech’s market will be predominantly represented by payments for automotive services such as parking and EV charging. Meanwhile, 25 per cent said e-commerce platforms for goods and services like food, beverages, and entertainment would use the tech the best. The remaining five per cent of respondents thought other additional functionalities would represent the market.

Jorge Bento, chief executive officer of Pairpoint

“Advanced connectivity is a catalyst for new ways of interacting with modern vehicles. Adding native payment functionality will allow for more secure, real-time, automatic usage of day-to-day services such as parking, EV charging, re-fuelling and more” said Jorge Bento, chief executive officer of Pairpoint.

Integrating tech from the payments market into automobiles 

There are a variety of technologies that can create a simpler, faster and more secure user experience compared to traditional methods. Some of these include:

• SIM cards for vehicle identification
• Biometric authentication
• Artificial intelligence
• Blockchain
• Payment wallets
• Near field communication
• Advanced connectivity
• Cloud tokenisation

To ensure the success of in-car payments, the study emphasises the need for a broad and collaborative ecosystem. The automotive industry, together with telecom operators, should focus on partner integration, process automation, and creating a secure system to minimise transactional risks.

Furthermore, with its advanced solution for the Economy of Things, and partnerships with industry stakeholders ranging from automobile to logistics, among others, Pairpoint is working to enable seamless and secure transactions between vehicles and other devices and equipment.

Pairpoint’s solution and technology streamlines the process of car payments. It provides a secure pay-by-car solution. This enhances the daily experiences of our customers to efficiently manage tolls, EV charging, and additional services, while opening up new opportunities for revenue generation.

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