The series of innovations in the payment industry is rolling on and on. As automakers are partnering with card networks and retailers to equip vehicles with in-car payment technology, drivers will be able to pay for gasoline or parking spaces without even getting out of their cars.
Jaguar pioneers by launching in-car payment
Jaguar has teamed up with Shell to propose the world’s first comprehensive in-car payment system, allowing drivers to simply fill up as the car does the payment. Jaguar drivers can use either PayPal or Apple Pay via the vehicle’s touchscreen. This Shell app is going to be extended to the entire Jaguar series as well as the Land Rover series.
The system equally allows users to log journeys and receipts that will be sent to the user’s email. With this Shell app, drivers can select the amount of fuel needed on the vehicle’s touchscreen. Android Pay will be available in late 2017. Available in the United Kingdom since February 2017, it will be extended globally by the end of the year.
Other big brands are following closely
Giants like Amazon and Google are among the first tech groups to explore and propose in-car payment technology. Google has already launched Android Auto, the in-car software platform designed to offer a simplified user experience to drivers. The icons appear on the vehicle’s screen. The driver can use voice-recognition to make calls, send SMS or launch apps like Spotify or Pandora. Google Maps directions are equally activated. Hyundai is equally collaborating with Google to integrate the Google Assistant. Card holders can benefit from discounts and opportunities to earn rewards and loyalty points.
Ford has struck a deal with Amazon to integrate the latter’s Alexa Artificial Intelligence assistant in its vehicles. The software also allows users to check the fuel level, the weather, lock and unlock doors, and even check the battery. Visa and Honda have equally announced earlier in January 2017 that they are working on a smart parking meter and in collaboration with gas pump manufacturers.
MasterCard has, on its side, stated that it is partnering with General Motors and IBM to offer mobile payments with OnStar systems in the vehicles dashboards. Volkswagen acquired parking payment through PayByPhone while Daimler acquired digital payments processor PayCash Europe.
In-car payment offers numerous advantages
Paying from your car is certainly very convenient. It is synonymous of saving time and avoiding discomfort, such as getting out in winter or fumbling for credit or debit cards for payments at the station. Smart parking meters are also considered as highly user-friendly, being a big help to drivers and undeniably, easing bottlenecks in high-traffic situations.
Further to that, paying remotely represents a decrease in the risk of fraud and identity theft that can arise with cards. Experts have also stated that credit card skimming is on the rise at gas stations as some have been granted additional time to integrate EuroPay, MasterCard, and Visa (EMV)-enabled payments.
Safety concerns are also looming ahead
Smart driving is equally raising concerns over safety as it encourages drivers to let their guard down behind the wheel. It is argued that having a voice assistant integrated into a vehicle may bring about an even higher level of distracted driving. A research carried out by the University of Utah showed that a driver needs up to 27 seconds to regain complete attention after using voice assistants. This duration is enough for a driver traveling at 25 miles per hour to cross three football fields.
Other than personal safety or risks of accidents, other experts consider that in-car voice assistant designed to take orders does encourage more spending. Thus, consumers prone to shopping addiction can be negatively affected with the ease of online purchasing.
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