In Vehicle Payment Services Market

The global in-vehicle payment services market size was USD 2.90 Bn in 2022 and is likely to reach USD 15.72 Bn by 2031, expanding at a CAGR of 18.8% during 2023–2031. The market growth is attributed to the increasing number of commercial and passenger vehicles worldwide as they result in propelling the demand for parking spaces.

In-vehicle payment services enable an individual to put an order and pay for gasoline, food, groceries, coffee, tolls, and parking slots without the need of stepping out of the vehicle. The current focus of manufacturers is to develop built-in systems that include voice-based controls which are expected to enable drivers to shop without striking the balance of safety norms on the roads.

The dashboards that are voice-based are expected to distract the driver’s attention while driving resulting in always prioritizing safety on road over the need for shopping as driving as dashboards need the requirement to chat. However, the University of Utah conducted a study that states that huge cognitive disruption can be caused by using speech-to-text technology, as an extra effort is needed to chat with a dashboard when compared to speaking to an individual.

The market report finds that the COVID-19 pandemic had an adverse impact on various industries and shattered the global economy due to emergency lockdowns, quarantines, social distancing, and other regulations imposed by local governments across various parts of the world.

However, the pandemic had a positive impact on the car-in payment services market, owing to the rising preference for contactless payments among individuals to avoid human interaction resulting to stop the further spread of the virus. Hence increasing adoption of in-vehicle payment services is expected to drive the global market amid the pandemic.

In-Vehicle Payment Services Market Dynamics

The global in-vehicle payment services market report has up-to-date insights that help in formulating a strategic roadmap about the estimated market scenario and performance during 2023 to 2031.

Drivers

Increasing the acquisition of driver support systems that benefit the driver in several ways including enabling purchasing and hassle-free parking is expected to fuel the market growth. As the service is extremely beneficial to the drivers as it helps make instant purchases and provides easy parking without using any card payments or any other device, which is expected to propel the growth of the market during the forecast period.

Growing traffic congestion is expected to drive the growth of the car-in payment services market. Roads, gas stations, toll plazas, parking spaces, and other places influence the population to adopt payment services. The growing influence of digital payment methods and their ease of use is anticipated to propel the market growth over the forecast period.

Restraints

Rising online thefts, frauds, and cyber-attacks are key challenges that can restrain the market growth during the forecast period. Hackers locate and track the payment information that causes financial loss to the user, which is hindering the growth of the market. However, the high cost of embedded systems as compared to integrated systems is anticipated to hamper the growth of the market.

Opportunities

Increasing technological advancements and research & development programs to implement these in the products are projected to present key opportunities for the market growth. However, the accelerating trend of autonomous vehicles that are self-driven is estimated to boost the market expansion in the coming years.

Scope of In-Vehicle Payment Services Market Report

The global in-vehicle payment services market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
 

In-Vehicle Payment Services Market Segment Insights

Based on mode of payment, the in-vehicle payment services market is segmented into app/e-wallet, NFC, credit/debit card, and QR code/RFID. The credit/debit card segment is expected to expand at a significant growth rate during the projection period, owing to the preference for cardless transactions among several age groups.

The app/e-wallet segment is anticipated to expand at a fast CAGR attributed to the escalating popularity of digital payment methods as they provide an easy and convenient way for making payments

On the basis of application, the market is divided into shopping, parking, food/coffee, gas/charging stations, toll collection, and others. The food/coffee segment is projected to register a considerable CAGR during the forecast period, due to the growing demand for on-the-go foods and beverages as a result of increasing traffic issues worldwide. The in-vehicle payment services help to avoid inconvenience and save time.

The parking segment is anticipated to grow at a rapid pace, due to the rising number of commercial and passenger vehicles. The increasing adoption of in-vehicle payment in the parking services is helping to reduce the long queues at the parking spaces.

Based on vehicle type, the market is segregated into passenger vehicles and commercial vehicles. The passenger vehicles segment is expected to register a robust growth rate during the forecast period, due to the demand for heavy and luxury vehicles. However, the increased population, disposable income, and urbanization have significantly increased passenger vehicle production.

In terms of region, the global in-vehicle payment services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the massive penetration of connected cars in the region.

The Asia Pacific is estimated to exhibit robust growth attributed to the increasing disposable income and rising population. The further regional market growth is attributed to the rising adoption of the advanced and latest technology.

Segments

The global in-vehicle payment services market has been segmented on the basis of

Mode of Payment

• App/e-wallet
• NFC
• Credit/Debit Card
• QR Code/RFID

Application

• Shopping
• Parking
• Food/Coffee
• Gas/Charging Stations
• Toll Collection
• Others

Vehicle Type

• Passenger Vehicle
• Commercial Vehicles

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Mastercard
• Ford Motor Company
• Mercedes-Benz Group AG
• General Motors
• Hyundai Motor Company
• Honda Motor Co., Ltd.
• Volkswagen AG
• JAGUAR LAND ROVER AUTOMOTIVE PLC
• ZF Friedrichshafen AG
• Amazon.com, Inc.
• Google Inc.
• PayPal Holdings, Inc.

Competitive Landscape

Key players competing in the global in-vehicle payment services market are Mastercard.; Ford Motor Company; Mercedes-Benz Group AG; General Motors; Hyundai Motor Company; Honda Motor Co., Ltd.; Volkswagen AG; JAGUAR LAND ROVER AUTOMOTIVE PLC; ZF Friedrichshafen AG; Amazon.com, Inc.; and Google Inc.; PayPal Holdings, Inc.

These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide.

• In November 2021, Visa signed an agreement with Daimler Mobility to integrate biometrics solutions to enable car-in payments. This partnership helps the company to offer innovative solutions to customers and acquire a competitive position in the market.