In-vehicle Payment Services Market Growth & Trends
The global in-vehicle payment services market size is expected to reach USD 11.03 billion by 2027, registering a CAGR of 19.9% from 2020 to 2027, according to a new report by Grand View Research, Inc. The increasing spending on convenience related to vehicles, rising disposable incomes, and the adoption of contactless payments are the key factors driving growth. Growing technological advancements and the adoption of mobile contactless payments are anticipated to further fuel the growth.
In-vehicle payment services are gaining adoption owing to the ease and convenience offered by various modes of payment services to the drivers and passengers. Automakers such as BMW, Mercedes, Ford, Honda, General Motors, and Jaguar Land Rover, have established services and solutions integrated into their vehicle models. With the increasing penetration of connected cars and advanced infotainment, the in-vehicle payment services are expected to flourish in the coming years. Currently, vehicle users are continually looking for a hassle-free experience in their busy schedules and an upgraded lifestyle. Thus, the ability to shop, order, and pay on the go without actually using card and cash transactions helps in reducing the time consumed and allows the commuters to travel safely. Hence, payment service providers such as MasterCard, Visa, PayPal are actively engaged in partnerships and collaborations with the OEMs to deliver efficiently in-vehicle payment services platforms.
The OEMs are designing and developing an ecosystem for payments in such a way that the driver and passenger may not need to get out of the vehicle and receives the desired services such as gasoline, parking spaces, and its payments, charging, toll collection booth, ordering food and coffee and others. However, the majority of parking systems, gas stations, toll collection booths have been incorporated with the mobile payment technology. E-wallet is gaining major attraction across the globe owing to convenience and ease of payment. Leading players such as Google-Google Pay, Amazon-Amazon Pay, and Apple Pay are gaining widespread adoption and are expected to be heavily adopted until 2027. The COVID-19 pandemic has already flourished the demand for contactless payments.
In-vehicle Payment Services Market Report Highlights
- The parking application segment is anticipated to register the fastest CAGR of over 20% during the forecast period
- The credit/debit card-based payments emerged as the largest segment in 2019. The segment is estimated to generate revenue of over USD 5.77 billion by 2027
- North America held the largest revenue share in 2019. Rising disposable income and the adoption of technological innovation related to vehicles in the region are anticipated to drive the growth.