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

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BASINGSTOKE, England – (COMMERCIAL THREAD) – A new study from Juniper Research has found the overall volume of in-vehicle payment transactions will exceed 4.7 billion in 2026, up from just 87 million in 2021. In-vehicle payments are where payments are made through vehicle systems, without requiring the use of a smart phone to process the transaction.

This extraordinary growth of over 5,300% over the next 5 years will be driven by increasing collaboration and industry initiatives of vehicle manufacturers, aimed at reducing the high level of fragmentation between different markets in the vehicle. 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.

For more information, download the free white paper: Embedded Payments ~ Resolving Fragmentation

North America to Dominate Embedded Payments Market

The new research, In-Vehicle Payments: Opportunities, Challenges, and Market & Forecast 2021-2026, found that North America will have the largest in-vehicle payments share of transactions by volume; which represents 42% globally by 2026. of all transactions Growth is driven by a large installed base of compatible payment vehicles and a high level of partnerships in place. The recent collaboration among industry participants in North America will be beneficial in overcoming fragmentation and user adoption from financial incentives to rewards and through loyalty programs over the next 5 years.

Vehicle refueling leads to in-vehicle payment use cases

Research has revealed that refueling vehicles will be the most common use case over the next 5 years; representing around 48% of total on-board payment transactions in volume. This growth is seen as the natural progression for fuel payments, which evolved from cash to card payments, then smartphone payments, and now in-vehicle payments.

The report recommends that stakeholders look beyond refueling and EV charging to develop additional use cases such as coffee and fast food pick-up payments through the vehicle’s 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.

vehicle market in research: https://www.juniperresearch.com/researchstore/fintech-payments/in-vehicle-payments-research-report

Download the white paper: https://www.juniperresearch.com/document-library/white-papers/in-vehicle-payments-resolving-fragmentation

Juniper Research provides research and analysis services to the global high-tech communications industry; provide advice, analyst reports and commentary on the industry.


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