February 21, 2024
In-Vehicle Payment Services Market

In-Vehicle Payment Services Market is driven by Increased Adoption of Advance Technologies

In-vehicle payment services allow passengers to make convenient payments for parking, toll roads, food deliveries, and fuel directly from their vehicle. These services integrate seamlessly with connected cars and offer drivers a hassle-free experience through hands-free payment options and navigation to favorite destinations. Growing internet penetration and the adoption of digital wallets are encouraging automakers to install payment terminals and offer in-built navigation systems with advanced payment integrations.

The global in-vehicle payment services market is estimated to be valued at US$ 6.28 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The key trends in the in-vehicle payment services market include growing adoption of digital wallets and contactless payments. Rapid urbanization and traffic congestion have increased demand for smarter payment solutions that reduce time spent at toll plazas or paying parking fees. Service providers are partnering with auto manufacturers, digital payment players, and merchant acquirers to offer integrated digital payment interfaces directly accessible through car infotainment displays. Furthermore, roll out of 5G technology will enable higher transaction speeds and more seamless payment experiences. Adoption of autonomous vehicles will also fuel demand as riders can make payments with the click of a button rather than using physical currency. However, data privacy and security continue to be major concerns for drivers reluctant to store payment details in connected vehicles. Service providers must focus on strengthening cybersecurity measures to gain widespread consumer acceptance of in-vehicle payment services over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat from new entrants is moderate as high R&D and capital costs are required to enter the market. However, advanced technologies are enabling new startups to enter with innovative business models.
Bargaining power of buyers: The bargaining power of buyers is high as there are many players providing in-vehicle payment services with diverse options. Buyers can easily switch between providers based on price and benefits.
Bargaining power of suppliers: Original equipment manufacturers that integrate in-vehicle payment technologies have strong bargaining power over payment solution providers as they control hardware integration.
Threat of new substitutes: Alternate emerging contactless payment methods can replace in-vehicle payment services. However, seamless integration with vehicle systems and safety considerations provide some advantages over alternatives.
Competitive rivalry: The market is competitive with presence of established global players and startups. Players differentiate based on technology platforms, partnerships, pricing, and service offerings.

Key Takeaways

The Global In-Vehicle Payment Services Market Size is expected to witness high growth.

Regional Analysis:

North America currently dominates the market benefiting from high technology adoption and network connectivity in vehicles. However, Asia Pacific is expected to witness fastest growth over the forecast period led by China and India increasingly adopting connected vehicles and infotainment systems requiring advanced payment solutions.

Key players:

Key players operating in the In-Vehicle Payment Services market are Medibank Private Limited, Petplan, Oneplan Insurance, Dotsure.co.za (Hollard), Healthy Paws Pet Insurance LLC, Figo Pet Insurance LLC, Embrace Pet Insurance Agency LLC, Anicom Holdings Inc., Oriental Insurance Company Ltd., MetLife Services and Solutions LLC (PetFirst Healthcare LLC), and Crum & Forster Pet Insurance Group (Hartville Pet Insurance Group), among others. Companies are investing in R&D to integrate advanced payment processing capabilities with connected vehicle systems. Strategic partnerships are also witnessed to penetrate regional markets and gain technological expertise.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it