In-vehicle Payment Services Market Size, Share & Trends Analysis Report By Mode Of Payment (NFC, QR Code/RFID, App/e-Wallet, Credit/Debit Card), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global in-vehicle payment services market size was valued at USD 4.23 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.2% from 2022 to 2030. In-vehicle payment services allow drivers to order and pay for food, coffee, gasoline, groceries, parking slots, and tolls without having to step out of the vehicle. Advances in the Internet of Things (IoT) technology and the efforts being pursued aggressively by various automakers to integrate new, advanced infotainment solutions in their vehicle models are expected to drive the growth of the market over the forecast period. The growing preference for contactless payment methods in the wake of the outbreak of the COVID-19 pandemic and continued innovations in smart vehicles also bode well for the growth of the market.

Various payment solution providers, including MasterCard, Visa, and PayPal, are partnering with automakers around the world to develop and integrate new payment processes and methods in vehicles. For instance, in May 2017, General Motors Co. announced a partnership with MasterCard to design and develop in-vehicle payment solutions. Similarly, in January 2019, Visa announced a collaboration with SiriusXM, to introduce a vehicle-based payments platform. Several other manufacturers such as Volkswagen AG, Honda Motor Co. Ltd., and Ford Motor Co. have also developed in-vehicle payment solutions and platforms. The outbreak of the COVID-19 pandemic has taken a severe toll on the global economy. Supply chains have got disrupted and manufacturing activity at several production facilities has been suspended temporarily owing to the lockdowns and other restrictions imposed by various governments in different parts of the world as part of the efforts to contain the spread of coronavirus. Nevertheless, the social distancing norms being advocated by various governments and the growing preference among individuals for contactless payments to avoid any potential coronavirus exposure are expected to contribute to the growth of the market over the forecast period.

Automobile manufacturers are focusing on developing built-in systems, including voice-based controls, which can potentially allow drivers to shop while driving without compromising with road safety norms. Given that a voice-activated dashboard can divert the driver’s attention, drivers have to always prioritize road safety if they are catering to their shopping needs while driving. A study conducted at the University of Utah has already revealed that speech-to-text technology can cause a high level of cognitive disruption since extra effort is required to chat with a dashboard than speaking to an individual. At this juncture, advances in self-driven and connected car technologies would play a vital role in driving the growth of the market over the forecast period.

The growing adoption of driver support systems is also projected to drive the growth of the in-vehicle payment services market over the forecast period. Driver support systems help drivers in various ways, including hassle-free parking and making purchases from the control panel without having to use any other devices or cards to complete the purchase.

Mode of Payment Insights

The credit/debit card segment accounted for the largest market share of around 53% in 2021. Debit cards and credit cards remain the most popular payment modes and are used extensively to make contact and contactless payments. The growing preference for card and cardless transactions and post cash transactions among individuals belonging to various age groups is expected to contribute to the growth of the market over the forecast period.

The app/e-wallet segment accounted for a significant share of the market in 2021 and is anticipated to register a CAGR of 14.2% from 2022 to 2030. The rising popularity of digital payment methods and the convenience and ease associated with wallet payments are particularly encouraging individuals to adopt in-vehicle payment services, thereby contributing to the growth of the market. As such, several apps or wallets, including Amazon Pay, Google Pay, AliPay, Apple Pay, Venmo, and Samsung Pay, among others, are being widely used for making payments. Meanwhile, Amazon and Google have linked their intelligent virtual assistants to their respective payment portals and e-wallets as part of the efforts to help consumers in shopping and making payments interactively.

Application Insights

The food/coffee segment accounted for a significant revenue share of around 27% in 2021. The preference to order coffee and food while on the way to workplaces, offices or other destinations is growing among passengers and drivers. Drivers have realized that waiting for buying food and coffee would not be possible due to the growing traffic. Hence, drivers are preferring to place orders, make payments from the vehicle itself, and simply pick up their orders on the way to save time and avoid any inconvenience, thereby driving the popularity of in-vehicle payment services.

The parking segment is projected to register a substantial CAGR of 15.4% from 2022 to 2030. The growing number of passenger and commercial vehicles is particularly expected to contribute to the growth of the parking segment over the forecast period. The data published by OICA revealed that the sales of commercial vehicles in China increased 18.7% over the year in 2020. The increasing number of passenger and commercial vehicles drive the demand for parking spaces. Adapting in-vehicle payment services in the parking spaces will assist in reducing long queues at these spaces.

Regional Insights

North America accounted for a market share of around 39% in 2021. The region has the maximum penetration of connected cars. Moreover, technology companies, including Apple Inc. and Google Inc., which are based in North America, have also entered the automotive market with their capabilities to innovate and compete with the automotive companies.

The Asia Pacific regional market is projected to register the highest CAGR of 14.5% from 2022 to 2030. The growing population and the rising levels of disposable income are expected to contribute to the growth. Adoption of the latest, advanced technologies and continued innovations in the way payments are made and processed would also play a vital role in driving the growth over the forecast period.

Key Companies & Market Share Insights

The prominent market players that dominated the market for in-vehicle payment services in 2021 include Ford Motor Co., Honda Motor Co. Ltd., General Motors Co., Volkswagen AG, among others. These players are putting a strong emphasis on developing payment solutions in partnership and collaboration with various payment solution providers. Meanwhile, Google and Amazon have also introduced devices that can be coupled with the vehicle console using voice control to help in shopping, navigation, accomplishing other tasks, and paying for various services through different payment gateways. Some of the prominent players operating in the global in-vehicle payment services market are:

• BMW AG

• Daimler AG

• Ford Motor Co.

• General Motors Co.

• Honda Motor Co. Ltd.

• Hyundai Motor Co.

• Jaguar Land Rover Automotive PLC

• Volkswagen AG

• ZF Friedrichshafen AG

• Google

• Amazon

• Visa

• MasterCard

• PayPal

In-vehicle Payment Services Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global and regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global in-vehicle payment services market report based on mode of payment, application, and region:

• Mode of Payment Outlook (Revenue, USD Million, 2018 - 2030)

  • NFC

  • QR Code/RFID

  • App/e-wallet

  • Credit/Debit card

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Parking

  • Gas/charging stations

  • Shopping

  • Food/Coffee

  • Toll Collection

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

  • Europe

  • Asia Pacific

  • Latin America

  • Middle East & Africa