KUALA LUMPUR, Nov 15 (Bernama) -- A new study from Juniper Research has found the global transaction volume of in-vehicle payments will exceed 4.7 billion by 2026, up from just 87 million in 2021.
In-vehicle payments are those where payments are made via vehicle systems, without requiring use of a smartphone to process the transaction.
According to a statement, this extraordinary growth of over 5,300 per cent in the next five years 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.
Payment vendors will need to quickly develop new capabilities in order to capitalise on this growing opportunity. As a result, it is anticipated the rate of acquisitions and partnerships will intensify to meet these urgent requirements.
The new research, In-vehicle Payments: Opportunities, Challenges & Market Forecasts 2021-2026, found that North America will have the largest in-vehicle payments share of transactions by volume; accounting for 42 per cent of all transactions globally by 2026.
The growth is driven by a large installed base of payment‑enabled vehicles and a high level of partnerships in place.
The recent collaboration between industry participants in North America will be beneficial in overcoming fragmentation and incentivising user adoption through rewards and loyalty schemes over the next five years.
The research found vehicle fuelling will be the most common use case over the next five years; accounting for around 48 per cent of total in-vehicle payment transactions by volume.
The report recommends that stakeholders 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 existing infrastructure in developed regions.
-- BERNAMA
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