A recent study by Juniper Research has found that the in-vehicle payment market will see growth of over 5,300% over the next five years.
In-vehicle payments comprise of payments that are made via vehicle systems without requiring the use of a smartphone to process the transaction.
The huge climb in growth predicted by Juniper would see the sector’s global transaction volume climb from $87m this year to a massive $4.7bn by 2026.
North America is anticipated to have the largest in-vehicle payments share of transactions by volume by 2026 at 42%, which is expected to be attributed to a large installed base of payment-enabled vehicles and a high level of partnerships already in place.
Vehicle fuelling was identified as the most common use case over the next five years, accounting for close to 48% of total in-vehicle payment transactions by volume.
According to Juniper, the overall market growth 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 firm added that payment vendors will need to quickly develop new capabilities in order to capitalise on the growing opportunity – as a result, it expects the rate of acquisitions and partnerships to intensify in order to meet the requirements.
The report called for stakeholders to look beyond fuelling and EV charging to develop additional use cases such as coffee shop and fast food pick-up payments via the vehicle dashboard – using infrastructure in developed regions.
Juniper added that enabling voice commerce will be critical in exploring these potentialities and will require vendors to develop new capabilities.
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