Global transaction volumes for in-vehicle payments made directly from vehicle systems without the use of a smartphone will exceed 4.7bn by 2026, up from 87m in 2021, according to a forecast by Juniper Research.
“This extraordinary growth of over 5,300% in the next five years will be driven by increasing industry collaboration and initiatives from vehicle manufacturers, aimed at reducing the high level of fragmentation between different in-vehicle marketplaces,” the researchers say.
They forecast that North America will have the largest share of in-vehicle transactions by volume and account for 42% of the total globally by 2026 because of “a large installed base of payment-enabled vehicles and a high level of partnerships in place”.
“The research found that vehicle fuelling will be the most common use case over the next five years, accounting for around 48% of total in-vehicle payment transactions by volume,” the researchers add.
“This growth is being seen as the natural progression for fuel payments, which have evolved from cash to card payments, then to smartphone payments, and now to in-vehicle payments.”
Other key use cases will include parking and toll charges as well as purchasing food, coffee and other refreshments, ecommerce orders and the “maintenance and unlocking of additional vehicle features”, the researchers say.
In-vehicle payment transaction volumes to top 4.7bn globally by 2026 was written by Tom Phillips and published by NFCW.