In-Vehicle Payment Services Global Market Report 2024

In-vehicle payment services empower car owners to make purchases directly from their dashboards, eliminating the need for a smartphone or other external devices, as the vehicle handles the transactions. These services facilitate payments directly from the vehicles.

The primary modes of payment in in-vehicle payment services include QR code or RFID, app-based or e-wallet, credit or debit card-based, and other methods. QR codes or RFID tags are employed for payments by scanning the QR codes or RFID tags, with RFID tags using radio waves to communicate the data for transactions. In-vehicle payment systems come in various forms, including embedded systems, tethered systems, and integrated systems, catering to different vehicle types such as passenger cars, light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and automated guided vehicles. Several applications of in-vehicle payment services include shopping, transactions at gas or charging stations, purchases of food and beverages, toll collection, parking payments, and other related applications.

The in vehicle payment services market research report is one of a series of new reports that provides in vehicle payment services market statistics, including in vehicle payment services market industry global market size, regional shares, competitors with an in vehicle payment services market share, detailed in vehicle payment services market segments, market trends and opportunities, and any further data you may need to thrive in the in vehicle payment services industry. This in vehicle payment services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The in-vehicle payment services market size has grown rapidly in recent years. It will grow from $3.87 billion in 2023 to $4.29 billion in 2024 at a compound annual growth rate (CAGR) of 10.8%. The expansion observed in the historical period can be attributed to consumer convenience and the rise of connected vehicles.

The in-vehicle payment services market size is expected to see rapid growth in the next few years. It will grow to $6.42 billion in 2028 at a compound annual growth rate (CAGR) of 10.6%. The anticipated growth in the forecast period can be attributed to ongoing advances in connectivity, a heightened focus on in-car commerce, security enhancements, regulatory support and standardization, and integration with smart cities. Major trends expected during this forecast period include advancements in mobile technology, increased partnerships and collaborations, the utilization of blockchain for security measures, collaborations with fintech companies, and the rise of subscription-based models.

The significant growth of the in-vehicle payment services market is being driven by the increasing preference for contactless payments. The shift towards contactless payments intensified during the COVID-19 pandemic, supported by advanced and seamless payment systems. Notably, in November 2021, the total value of contactless transactions reached £17.7 billion (USD 19.96 billion), a substantial increase from £9.9 billion (USD 11.84 billion) and a remarkable 155.3% surge compared to £6.9 billion (USD 7.6 billion) in November 2019. Consequently, the rising preference for contactless payments is anticipated to fuel the growth of the in-vehicle payment services market.

The in-vehicle payment services market is expected to experience growth propelled by the increasing adoption of IoT technology. The Internet of Things (IoT) involves a network of physical objects, vehicles, and appliances embedded with sensors and software to exchange data. IoT facilitates the conversion of generated data into payment decisions, enabling in-vehicle payments without explicit user input. The IoT Analytics State of IoT - Spring 2022 report indicated a significant increase, with 12.2 billion active endpoints in 2021, an 8% rise in total IoT connections. The IoT industry is projected to grow by 18% to 14.4 billion active connections in 2022, anticipating around 27 billion linked IoT devices by 2025. Hence, the growing adoption of IoT technology is a key driver for the in-vehicle payment services market.

In the in-vehicle payment services market, technological advancements have become a prominent trend. Leading companies in this sector are concentrating on advancing technologies to enhance their market position. For instance, Hyundai, a South Korea-based automotive manufacturer, developed an innovative in-car payment system set to debut in its all-electric Ioniq 5 crossover. This system allows drivers to discover and pay for electric vehicle charging, parking, and food, combining the benefits of electric car charging with conventional in-vehicle purchases.

Major players in the in-vehicle payment services market are actively pursuing strategic collaborations and partnerships to introduce advanced solutions and gain a competitive edge. Such collaborations aim to offer more seamless and integrated payment solutions, providing an enhanced customer experience. For example, Hyundai Motor America joined forces with Parkopedia, a UK-based connected car services provider, to launch Hyundai Pay, an in-vehicle payment system enabling customers to find and pay for various services using their vehicle's touchscreen and securely stored credit card information.

In September 2021, JPMorgan, a US-based financial services organization, acquired Volkswagen's payments business, reflecting its commitment to renaming and investing in the payments company. This strategic move aims to enhance mobility-focused payment operations. Volkswagen Payment Systems GmbH, based in Germany, specializes in creating and coordinating payment solutions for parking, car sharing, tolls, and fuel.

Major companies operating in the in the in-vehicle payment services market report are Mastercard Inc., The Mercedes-Benz Group AG, Jaguar Land Rover Automotive PLC, Honda Motor Co. Ltd., Hyundai Motor Company, ZF Friedrichshafen AG, Amazon. com Inc., Google LLC, International Business Machines Corporation, Telenav Inc., Xevo Inc., CarPay Diem Cerence Inc., Gentex Corporation, PayPal Holdings Inc., Bayerische Motoren Werke AG, Ford Motor Company, General Motors Company, Volkswagen AG, The International Business Machines Corporation, VISA Inc., Harman International Industries Inc., Audi AG, Panasonic Corporation, CarIQ Technologies Pvt. Ltd., BlackBerry Limited, Circle Internet Financial LLC, Blockstream, Parkwhiz, Rivian Automotive Inc., PayByCar

North America was the largest region in the in vehicle payment services market in 2023. The regions covered in the in-vehicle payment services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the in-vehicle payment services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The in vehicle payment services market includes revenues earned by entities by RFID and BLE technologies. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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