In-vehicle payment transaction volumes to exceed 4.7 billion by 2026, as collaboration accelerates growth

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According to data from Juniper, the global volume of in-vehicle payments transactions – where payments are made through vehicle systems, without requiring the use of a smartphone to process the transaction – will exceed 4.7 billion by 2026, against only 87 million in 2021. Search.

This extraordinary growth of more than 5,300% over the next 5 years will be driven by growing collaboration between industry and initiatives by car manufacturers, aimed at reducing the high level of fragmentation between the various in-vehicle markets. Payment providers will need to rapidly develop new capabilities in order to capitalize on this growing opportunity.

As a result, we anticipate an intensification of the pace of acquisitions and partnerships to meet these urgent needs.

The new research, In-vehicle Payments: Opportunities, Challenges & Market Forecasts 2021-2026, found that North America will have the highest share of on-board payments transactions by volume; accounting for 42% of all transactions worldwide by 2026. Growth is driven by a large installed base of payment-compatible vehicles and a high level of partnerships in place. T

he recent collaboration among industry participants in North America will be beneficial in overcoming fragmentation and driving users to adopt rewards and loyalty programs over the next five years.

Research has found that refueling vehicles will be the most common use case over the next five years; representing around 48% of total on-board payment transactions in volume. This growth is seen as the natural progression of fuel payments, which have shifted from cash payments to card payments, then to smartphone payments and now to in-vehicle payments.

The report recommends that stakeholders look beyond refueling and recharging electric vehicles to develop additional use cases such as coffee pickup and fast food payments through the vehicle dashboard; using existing infrastructure in developed regions. Enabling voice commerce will be key to exploring these opportunities and will require vendors to develop new capabilities.

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