About

The automotive space is changing. Vehicles used to be digitally isolated, utilizing internal systems and without access to over-the-air software updates. As new cars hit the production line, more and more will be connected to external online systems, creating a bigger desire for on-demand mobility services and features.²

With cars turning into a digital device, they form the basis for data collection and potential monetization. As the car becomes globally connected, this opens up opportunities to convert the vehicle into an automotive payments device.³ While adoption of in-car payments has been relatively limited, J.P. Morgan Payments continues to develop solutions that can help lead to innovation and the integration of mobility payments.

The future of in-car payments

With connected cars, vehicles are no longer just a product to be sold and maintained. They have become a mobile source of payments and data—one that can initiate transactions, serve as a connector between multiple parties and drivers and even inspire new business models.¹ As consumer expectations shift towards shared mobility, subscription services, digital services and software innovation, creating a connected payments-powered in-vehicle commerce experience will be a necessity.

In-car payments have the opportunity to change how drivers make on-the-go transactions, all managed by contactless payment via the infotainment system screen. The future of transportation payments could look like pop-up notifications when fuel is low or batteries are in need of recharging, navigating them to a fuel or electric vehicle (EV) charging station. Or the in-car payment system (ICPS) could be used as a mobile wallet—enabling drivers to pre-purchase coffee, parking spots or temporary insurance straight from their vehicles.

Automakers digitizing payments in commercial fleets can help streamline business operations and make expense management simpler for drivers. For example, instead of a physical card for Travel & Expenses, a fleet car may be able to use a virtual commercial card to manage fueling payments and streamline expense management through automatic submission. This type of paytech could help mitigate fraud by only authorizing payments to certain types of merchants.¹

Connecting beyond the vehicle

The goal for in-vehicle commerce is to facilitate connection to the larger mobility ecosystem. 
A new era of collaboration among automakers, technology giants, software start-ups, research institutions, telecom providers, insurance companies and others to develop and commercialize the technology, share risk, and prepare the market is ushering in global connectivity.⁴

As adoption of EVs increases globally, it becomes even more important that charging points are easily accessible and that the ICPS is integrated into the driving experience. Leveraging its connectivity, the car can be a ‘wallet’ on four wheels, allowing drivers to easily pay for charging. Manufacturers and dealers may even consider allowing electrical charging deposits and trade-in credits to be deposited into the car’s wallet, encouraging drivers to use this money in the same ecosystem.¹

The car’s role as a connector extends beyond the model where drivers are connected to retailers, gas stations and service providers via their dashboard. For example, as media looks for various avenues to deliver content to consumers, the vehicle could be used as an outlet, offering opportunities to purchase the goods displayed on the infotainment system screen via contextual commerce. The car could also connect third-party suppliers to each other—similar to the Apple App Store—who can then collaborate and sell their services on the car’s marketplace.¹