Vehicle charging and smart parking payments are expected to boost the value of in-vehicle purchases to $86 billion (£67bn) by 2025, according to a report by Juniper Research.
Juniper, a specialist in digital technology market research, said in-vehicle payments will sky rocket from $543 million (£423m) this year to this predicted dramatic increase spike, as long as security and integration of digital wallets are achieved effectively.
Juniper said these elements will be critical in establishing in-vehicle payments as a viable channel and, if ignored, will likely see initiatives fail to achieve widespread adoption.
‘The Race for In-vehicle Payments’ whitepaper found that fuel and electric vehicle charging payments will be the leading area for in-vehicle 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-vehicle systems.
Research co-author Nick Maynard said: “Fuel and charging can be the compelling use case that accelerates the adoption of in-vehicle payments, but to achieve this, industry participants must focus on building collaborative frameworks that boost integration and improve availability.”
The research found that voice commerce will be a major supporting factor in the in-vehicle 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-vehicle payments, including eCommerce, food and drinks to over $11 billion in 2025, from just $12 million in 2020.