Global In-vehicle Payments Market To Grow Five-fold, Reaching Almost $26 Billion by 2031

BIS Research, the global leader in providing market intelligence on deep technologies, has released its latest study titled “In-Vehicle Payments Market – A Global and Regional Analysis” to coincide with the CES 2023 show.

According to the study, the global in-vehicle payments market, valued at $4.9 billion in 2021, is projected to reach $25.9 billion by 2031.

The following factors are responsible for this 5x increase in demand for in-vehicle payments:

·      Shift in OEM focus toward developing in-car payment services

·      Increased demand for contactless payment solutions

·      Growing demand for connected vehicles

·      Increase in production of autonomous vehicles across the globe

Connected Car Tech Big at CES 2023

This year’s CES show in Las Vegas – January 4-8^th – concentrates on the connected car and adjacent vehicle tech, like in-car payments.

The rate of digital payment innovation is driving a cost reduction that is expected to double the compound annual growth rate of the in-vehicle payments market, said Faisal Ahmad, Founder and CEO of BIS Research, in the report.

“The emergence of new players results in new business models and a more competitive environment. Some examples of innovations are contactless payments and QR codes, among others.” Ahmad said.

“Subscription and mobility as a service are on the rise, and automakers must learn how to balance these new business models to ensure they continue enhancing customer experience and meeting revenue sales goals.”

Contactless payments are gaining popularity, he added. “Proliferating demand for EV infrastructure and autonomous vehicles will significantly augment the demand for in-vehicle payments in the coming years,” he said.

“The in-car payments market is not new, and various solutions have popped up here and there over the years,” said Evgeny Klochikhin, CEO and Founder of Sheeva.AI, an in-car payments firm profiled in the report.

He said the recent exponential growth of digital payments after Covid and the renewed focus on user convenience make the current market “much better positioned to embrace this new industry at scale.”

“This study by BIS Research shows consumers are ripe to try out these new approaches and make their driving lives easier once and for all,” Klochikhin added.

Sheeva.AI is also at the CES 2023 event in the LVCC, North Hall, Booth #9575. They noted the focus on connected cars this year.

“We are honoured to be featured in this study, being one of only a handful of in-car payments technologies that use unique connected vehicle features inaccessible to smartphone and other portable device manufacturers today,” said Klochikhin.

“Sheeva.AI creates a fully digital, automated payments environment using precise car location at the gas pump, EV charging spot, parking space or retail location to trigger transactions with only one touch from the user. Thus, no new infrastructure or mobile apps are necessary to attract new customers.”

Passenger Cars Driving the Growth

According to the study conducted by BIS Research, passenger vehicles are currently credited with the highest share of the demand for in-vehicle payments.

Some key factors that have enabled the technical acceptance of these vehicles are high demand, higher registration of passenger cars, and less operating difficulty compared to commercial vehicles.

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