In-Vehicle Payment Services Market Analysis

In-Vehicle Payment Services Market Analysis

Debit/credit card payment segment held around 55% of the Canadian in-vehicle payment services market share in 2021 led by the popularity of debit/credit card and extensive use to make contactless payments. Leading automotive manufacturers are focusing on partnerships; General Motors partnering with Mastercard and IBM, Honda motors partnering with Mastercard Visa and PayPal. These players are working toward developing a strong in-vehicle payment ecosystem to allow consumers make payments hassle-free across parking slots, restaurants, toll stations, and gas stations.
 

The market growth of debit/credit card mode of payment is also attributed to the large penetration debit and credit cards in the country. As it is one of the most commonly used payment methods among consumers to make online purchases. Moreover, the presence of multinational companies, such as MasterCard, Maestro, American Express, and Visa, ensures a safe payment process between vendors and issuing banks through payment processing solutions.
 

The smart parking application using in-vehicle payment services in the UK is projected to witness 45% gains through 2028 due to the growing number of passenger vehicles across the country. The growing adoption of in-vehicle payment services in the parking spaces is assisting in reducing long queues at these spaces. In-vehicle payment services offer flexibility and high level of convenience.
 

North America in-vehicle payment services market is estimated to generate about USD 2 billion revenue by 2028 on account of the high investments by automotive manufacturers in the auto-technology. The supportive government initiatives also act as a major driver for connected car growth in the region. The regional governments are investing in developing their road & telecom infrastructure to help connected cars to communicate with their surrounding environments in a better manner. The well-established automotive industry in North America is positively influencing the demand for in-vehicle payment services.