In-vehicle Payment Services Market Size, Share & Trends Report

In-vehicle Payment Services Market Size, Share & Trends Analysis Report By Mode Of Payment (NFC, App-based/e-Wallet), By Application, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-072-8
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2018
  • Number of Pages: 120

Report Overview

The global in-vehicle payment services market size was estimated at USD 1.96 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 19.9% from 2020 to 2027. Increasing trends of contactless payment post-COVID-19 outbreak, growing customer base to achieve convenience in vehicles, and growing technological innovations are the major factors driving the overall market growth. The in-vehicle payment services permit the drivers to simultaneously shop for groceries, order food and coffee, and pay tolls and parking and at gas stations for the vital commodity. The automotive industry is continuously evolving around the Internet of Things (IoT), and automotive manufacturers are increasingly integrating new technologies for innovative infotainment solutions. Currently, payment solution providers such as Visa, MasterCard, PayPal are partnering with the automakers to develop and integrate the new payment methods in the vehicles. 

North America in-vehicle payment services market size

For instance, General Motors partnered with MasterCard to develop a solution for in-vehicle payment. Visa, in collaboration with SiriusXM, has announced to launch a vehicle-based payments platform. Other manufacturers such as Honda, Volkswagen, and Ford have developed their in-vehicle payment platforms and solutions. Manufacturers are developing inbuilt systems such as voice-based control, which enables shopping on the road with safety for the drivers. Drivers need to keep their eyes and hands focused on the streets and highways while accomplishing their purchasing needs. The voice-activated dashboard can distract the driver. According to a study conducted at the University of Utah, speech-to-text technology causes a higher level of cognitive distraction than any other activity since more effort is required to talk to the dashboard than talking to a real person. However, the growth in the connected and self-driven car is expected to fuel the market growth in the coming years.

Passengers are also willing to make quick purchases wherein the drivers can help in collecting the purchases. Parking and its payment allow the drivers to park their vehicles hassle-free, which further helps in traffic management and reduced operational costs for parking space. Additionally, OEMs, in collaboration with manufacturers, are creating an on-dashboard marketplace for drivers. For instance, General Motors allows drivers to place requests and orders from this on-dashboard for different products and services, which includes hotels, rooms, stays, parking, and dinner reservations, among others.

With the growing adoption of connected cars and in-vehicle payment services, the primary concern occurs with data storage and security. Hackers can locate and track the payment information causing significant financial losses. However, cloud storage resolves the issues of data storage and management. Currently, the automotive industry, including connected cars and electric vehicles, contributes to the maximum data generation.

Mode of Payment Insights

The credit or debit card-based payment method segment accounted for the largest revenue share of around 54% in 2019. Credit and debit card transactions are the most popular and widely used transaction method in contact and contactless payments. Post cash transactions, card-present, and card-not-present transactions are widely used by people of every age group across the globe.

The app-based/e-wallet segment accounted for a significant share and is thus expected to expand at a CAGR of 20.8% from 2020 to 2027. The growing popularity of digital payment techniques and ease and convenience provided by wallet payments has gained vast attraction from the consumers and drivers. However, it is expected that wallets or apps such as Google Pay, Amazon Pay, Apple Pay, Samsung Pay, Venmo, and AliPay, are the widely used mobile wallets for payments. Meanwhile, Google and Amazon have integrated their intelligent virtual assistants to shop interactively and pay through their e-wallets or payment methods.

Application Insights

The food and coffee ordering application segment accounted for the largest revenue share of around 26% in 2019. Currently, many drivers and passengers prefer ordering food and coffee on their way to offices and workplaces, or when they go to a destination. However, increasing traffic lowers the probability of waiting for and buying food and coffee, thus ordering food through the vehicle, and picking up the same on the way reduces the total time taken, further increasing the popularity.

Global in-vehicle payment services market share

The gas stations segment is expected to register a significant CAGR of 20.8% from 2020 to 2027. The gas station is a crucial requirement of any vehicle. However, payment methods such as e-wallet, NFC, and QR code save the time taken on payments. For instance, Visa and Honda demonstrated a new in-vehicle payment system they have been working on, in collaboration with the smart parking meter and gas pump manufacturers. Honda drivers will be alerted when they pull up to a beacon-equipped smart meter or fuel pump, and they can pay just by touching a button on the dash.

Regional Insights

The North America region accounted for the largest revenue share of around 39% in 2019. The region has the highest penetration of connected cars. Also, technological giants such as Google Inc. and Apple Inc. have entered the automotive market to develop innovative capabilities and cultural changes to compete with those that are based out of the region.

The in-vehicle payment services market in the Asia Pacific region is anticipated to grow at the highest compound annual growth rate of 21.8% from 2020 to 2027, owing to the growing population and rising disposable income. Technological proliferation and innovations in the payment industry are expected to drive demand over the forecast period.

Key Companies & Market Share Insights

The key players that dominated the global market in 2019 include Honda, Ford, Volkswagen, and General Motors. These players have developed their payment solutions in collaboration and partnership with payment solution providers. Amazon and Google have introduced voice control based integrated devices to the vehicle dashboard. It allows navigation, shopping, and performing other tasks, and is expected to pay for them through various modes of payment. Some prominent players in the in-vehicle payment services market include:

  • BMW AG

  • Daimler AG

  • Ford Motor Co.

  • General Motors

  • 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

Report Attribute

Details

Market revenue in 2020

USD 3.09 billion

Revenue forecast in 2027

USD 11.03 billion

Growth Rate

CAGR of 19.9% from 2020 to 2027

Base year for estimation

2019

Historical data

2017 - 2018

Forecast period

2020 - 2027

Quantitative Units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Mode of payment, application, region

Regional scope

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

Country scope

NA

Key companies profiled

BMW AG; Daimler AG; Ford Motor Co.; General Motors; Honda Motor Co. Ltd.; Hyundai Motor Co.; Jaguar Land Rover Automotive PLC; Volkswagen AG; ZF Friedrichshafen AG; Google; Amazon; Visa; MasterCard; PayPal

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2027. For this study, Grand View Research has segmented the global in-vehicle payment services market report by mode of payment, application, and region:

  • Mode Of Payment Outlook (Revenue, USD Million, 2017 - 2027)

    • NFC

    • QR Code/RFID

    • App-based/e-wallet

    • Credit/Debit Card-based

  • Application Outlook (Revenue, USD Million, 2017 - 2027)

    • Parking

    • Gas/Charging Stations

    • Shopping

    • Food/Coffee

    • Toll Collection

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2027)

    • North America

    • Europe

    • Asia Pacific

    • Latin America

    • Middle East & Africa

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