by In-vehicle payment services refer to digital payment solutions that allow drivers and passengers to pay for goods and services directly from their vehicles. These services integrate mobile wallets, debit/credit cards, and other digital payment modes into in-car systems. Common use cases include contactless payments at gas stations, toll booths, parking lots, drive-thrus, and for delivery orders. The payment process is facilitated through technologies such as near-field communication (NFC), Bluetooth, and GPS. With growing digitalization and rising demand for cashless and contactless transactions amid the COVID-19 pandemic, the adoption of in-vehicle payment services is increasing significantly.
The global in-vehicle payment services market is estimated to be valued at US$ 6.28 billion 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 Dynamics:
The growing demand for cashless transactions is a major driver propelling the growth of the in-vehicle payment services market. With the COVID-19 pandemic accelerating digital payment adoption, consumers are increasingly preferring contactless transactions to avoid the use of cash. This rising preference for digital and mobile wallets is augmenting the demand for in-vehicle payment solutions. Additionally, advancements in technologies such as 5G and blockchain are facilitating easy integration of payment gateways into vehicles. Leading automakers are partnering with digital payment providers to offer seamless payment options directly from vehicle dashboards. This is further expected to drive the market growth over the forecast period.
Segment Analysis
The in-vehicle payment services market is segmented by type into embedded, tethered and integrated. The embedded segment dominates the market and accounts for around 60% share as it offers seamless connectivity without the need for smartphones. This helps in driving adoption, especially for fleet and commercial vehicle owners.
PEST Analysis
Political: Governments across regions are promoting digital payments and less cash economies. This is positively impacting the market. For instance, programs like India’s Digital India are encouraging adoption of contactless payments.
Economic: As economies progress and per capita incomes rise, consumers are willing to pay for value-added services in their vehicles. This is driving demand from developing markets especially. High motorization rates in Asia Pacific are a key growth driver.
Social: Younger demographics are more comfortable with digital payments and new-age technologies. This early adoption mindset of millennials and centennials is fueling the market. Integration of payment interfaces in native apps also boosts social acceptance.
Technological: Rapid proliferation of connectivity options like Bluetooth, NFC etc. and rising processing power of automotive electronics are enabling innovative payment solutions. Advances like 5G will further enhance immersive in-vehicle experiences and connected vehicle platforms.
Key Takeaways
Global In-Vehicle Payment Services Market Size is expected to witness high growth at a CAGR of 5.6% during the forecast period of 2023 to 2030.
Regional analysis:
Asia Pacific as the fastest growing region due to high vehicle volumes in countries like China and India. Revenue from the Asia Pacific region is projected to reach over US$ 2 Bn by 2030.
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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
