In-car payments are on the rise. Source: Shutterstock.com

The global automotive payment market is projected to surpass $580 billion by 2030, largely due to the rise of 895 million connected vehicles, according to a new report by Pairpoint and STL Partners.

The report, Fuelling the Future: the $580 Billion In-Car Payment Opportunity, outlines how in-car payments will transform the industry, driven by payments for services such as parking and EV charging (70%), e-commerce platforms for goods and services like food, beverages, and entertainment (25%), and additional functionalities (5%). The market is expected to grow at an annual rate of 130% between 2023 and 2030, underlining the key role vehicle connectivity will play in the future of the automotive industry.

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Pairpoint, a provider in the Economy of Things, emphasised the importance of vehicle connectivity in transforming the way drivers interact with everyday services, with the report highlighting how connected vehicles will enable a wide array of in-car transactions.

In-car payments represent one of the key innovations in the sector, allowing drivers to conduct transactions automatically and securely through the vehicle’s software

Additionally, the global connected vehicle market is expected to grow from 430 million to 895 million vehicles over the same period.

This technology aims to redefine the driving experience by enabling a wide range of services, including pay-as-you-drive insurance, remote vehicle monitoring, real-time information for drivers and automatic emergency calls. One of the biggest opportunities and benefits identified is the ability to make payments directly from the car without the need for physical cards or mobile apps, including for fuel, electric vehicle (EV) charging, and parking.

The study anticipates that the potential market will be predominantly represented by payments for automotive services such as parking and EV charging (70%), e-commerce platforms for goods and services like food, beverages, and entertainment (25%), and additional functionalities (5%).

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Jorge Bento, Chief Executive Officer of Pairpoint, said: “Advanced connectivity is a catalyst for new ways of interacting with modern vehicles. Adding native payment functionality will allow for more secure, real-time, automatic usage of day-to-day services such as parking, EV charging, re-fuelling and more. At Pairpoint we are dedicated helping lend our technology to help build a robust partner ecosystem, driving both adoption and scalability.”