In-vehicle payment services refer to advanced payment solutions that allow drivers to make in-car purchases without having to take out their wallets or stop at drive-thrus. These services offer various payment modes like credit and debit cards, digital wallets, and others for payment of parking fees, toll collection, drive-thrus, refueling and electric vehicle charging. The convenience of contactless payments through in-car integrated systems is driving increased adoption among consumers.
The global In-Vehicle Payment Services Market is estimated to be valued at US$ 7.24 Bn in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Adoption of contactless payments through digital wallets and connected car platforms has been a key driver for the in-vehicle payment services market. Major tech giants are partnering with automakers to integrate their payment platforms directly into vehicle systems. For instance, integration of Apple Pay into vehicle infotainment enables drivers to make payments during refueling or EV charging with a tap on the display screen. Similarly, services like Amazon Pay allow automatic toll and parking payments for supported vehicles. This convenience of contactless payments without requiring users to take out physical cards or cash boosts market demand. Changing consumer preferences towards ease and safety of digital transactions are expected to further propel adoption of in-vehicle payment services going forward.
SWOT Analysis
Strength: In-vehicle payment services provide contactless and secure payment solutions for goods and services within vehicles. This enhances convenience for drivers and passengers.
Weakness: Adoption of in-vehicle payment technologies requires investment in infrastructure and connectivity solutions by automakers as well as merchants. Data privacy and security challenges also exist.
Opportunity: As autonomous vehicles become more common, in-vehicle payment services can power commerce opportunities within mobility pods. They also allow drivers to pay for goods and services like fuel, parking, tolls and food deliveries hassle-free.
Threats: Stiff competition from well-established digital payment solutions can slow adoption. Dependence on telecom networks and technologies poses risks of technical glitches or network issues impacting service quality.
Key Takeaways
Global In-Vehicle Payment Services Market Size is expected to witness high growth over the forecast period of 2024 to 2031. Rapid adoption of connected car technologies and growing emphasis on enhancing mobility experience are driving demand.
Regional analysis shows the Asia Pacific region is growing the fastest on account of large vehicle fleet, rising disposable incomes, and investments made by regional automakers in connected vehicle technologies. China and Japan are currently the largest markets.
Key players operating in the in-vehicle payment services market are Apple Inc., Amazon Renewed, Samsung Electronics, Best Buy Co., Inc., Gazelle (a subsidiary of ecoATM Gazelle LLC), Newegg Inc., Decluttr, Back Market, HP Inc., GameStop Corp., Swappa, BuyBackWorld, eBay Inc., Renewgoo, Music Magpie. They are focusing on partnerships with automakers and merchants to expand offerings and rollout new features to enhance user experience of contactless payment.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it