Technology has invaded almost every aspect of our lives. It is no exception for major industries and businesses as well. Innovations in the payment industry are one of the most striking technological advancements by mankind. After the retail industry, it is the car industry’s turn to embrace digital payment systems.
Imagine yourself being able to pull up at a gas station and not having to pay with cash or card. What if you can pay with your car? Yes, you’ve read it right. The future is here, with in-car payment technology.
What is in-car payment technology?
The automobile industry is partnering with card networks and retailers in order to equip vehicles with in-car payment systems. Basically, your car will be your wallet and you won’t need to get out of your vehicle to pay for gasoline or parking spaces. This is indeed the height of convenience. You can finally get rid of cash bulging in your wallets or pockets. While it is true that the majority of pumps has adopted card and mobile payment technology, in-car payment systems do not require you to remove your wallet or mobile.
Connected Commerce Lead at Accenture Mobility, Rich Meszaros believes that in-car payment technology is an exciting area of innovation and that it is an amazing opportunity for vehicles to prove themselves within everyday commerce experiences.
Jaguar collaborates with Shell to create the first in-car payment system ever
2017 saw great technological innovations and one of them is world’s first in-car payment system. It is the amazing result of a partnership between the luxury brand Jaguar and Shell. Thanks to the new technology, you just need to fill up your vehicle and go as the latter pays for you. The new payment feature allows customers to use Apple Pay and PayPal to pay for gas at the pump, right within their vehicles. The application is known as the Shell app and is one of several enhancements to Jaguar’s F-PACE, XE and XF models. Instead of using your wallet or your phone’s touchscreen, you will be using your vehicle’s touchscreen to select how much fuel it requires and then pay the amount. An electronic receipt is displayed once the payment is completed. It is then sent to your email address. Moreover, Android Pay is expected to be available in the coming years.
Shell and Jaguar Land Rover have created a simple, yet secure customer experience that uses geolocation technology and cloud-based pre-payment check. Unlike current phone-based payment methods, there is no risk of thefts or fraud.
Jaguar Land Rover is known for its cutting-edge innovation
Known as the UK’s biggest investor in manufacturing research and development, Jaguar Land Rover brings together two much loved and highly prestigious British car brands – Jaguar and Land Rover. The company is constantly committed to developing world-class innovations which keep them at the cutting-edge of the automotive industry. From predictive gesture and voice control activation to new technology for better visibility on the road and in-car payment system, Jaguar is dedicated to drivers’ comfort and complete satisfaction.
Shell already offers mobile payment facilities
In 2015, Shell already launched a secure mobile payment service – the Fill Up & Go mobile payment system. It works with Apple Pay, Android Pay and PayPal. Unlike the old systems such as card payment terminals, the Fill Up & Go technology allows you to use PayPal to pay for fuel through your smartphone at the gas station.
The petrol giant partnered with PayPal to produce the free iPhone and Android service, with the aim of speeding up the refuelling experience at gas stations. Thanks to the new technology, you don’t need to go to the counter to pay or queue for a long time. The system alerts the controller at the pump that you’ve authorized a payment and the controller lets the pump dispense your fuel. The app is easy to download and use. You can also scan a QR code at the pump and select how much fuel you want to use. Furthermore, the amount you use is deducted via PayPal, which means you can spend directly from your bank account.
Android Auto was launched by Google
Jaguar is not the only company that invests in the latest technologies and innovations. Google launched Android Auto in 2015. It is a dedicated app that allows users to connect their smartphones to compatible in-car head units and infotainment systems. The app transmits data from Google Maps, Messages, Google Play Music and weather from your phone to your car dashboard. Available for devices running Android 5.0 and above, the app encourages a hands-free experience and road-friendly usage. Android Auto was designed with safety in mind and drivers can make calls, send messages and check Google maps thanks to voice commands. With your Google Assistant on Android Auto, you only need to keep your eyes on the road. You can stay connected even while you are driving. This eliminates the risk of accidents.
Ford and Amazon team up to create Alexa in the car
Alexa Voice Service (AVS) is Amazon’s suite of services built around its voice-controlled AI assistant. AVS brings the convenience of voice control to any connected device. Some years back, Ford teamed up with Amazon to integrate Alexa Artificial Intelligence assistant in its vehicles. The AVS helps you to add the magic of cloud-based intelligence and hands-free voice control to your connected products. Access to Alexa in the car offers consumers the ability to access their car from home and use other features from their vehicles. In addition, you can command internet-enabled functions such as lighting, security systems or garage doors from your vehicles. Alexa also has the ability to control or share information with Hyundai, BMW and Genesis vehicles.
MasterCard partners with General Motors and IBM
In 2016, MasterCard partnered with General Motors (GM) and IBM to integrate payments into OnStar Go, a new AI-powered version of GM’s OnStar system. The new system will allow drivers and passengers to make secure and seamless payments for goods and services using credit and debit cards within their Masterpass wallet. In a 2017 press release, MasterCard said that customers at Chevrolet, Buick, GMC and Cadillac dealerships in the United States would be able to order and pay for ACDelco and other accessories by using MasterCard’s payment gateway.
In-car payment systems offer amazing benefits
In-car payments will soon be within all drivers’ reach. In the near future, you will be able to complete purchases and make payments directly from your vehicle consoles. According to research, payments are one way connected cars can offer on-the-go convenience by leveraging that connectivity with purchasing power. Consumers are constantly looking for convenience and hassle-free experience due to their busy lifestyles. The ability to make payments without having to put out a card or smartphone can save drivers time and help them complete their shopping experience easily and efficiently. Director of e-commerce at GM believes that working with MasterCard will help deliver the best possible customer experience and provide a fast, secure and hassle-free payment process.
Your car will be an extension of who you are
The Chairman and Chief Technology Officer of CBW Bank, Suresh Ramamurthi says that technology firms, ride-hailing companies and financial institutions are in the process of integrating automobiles into the burgeoning Internet of Things. According to him, your car will be an extension of who you are, just like your smartphones are. In the distant future, the car may even become an autonomous agent that can carry out tasks and complete payments without the owners’ input.
In-car payment technology is a blessing in disguise
There is no doubt about the amazing benefits and convenience of in-car payment technology. However, in-car payments may be a blessing in disguise. Safety experts believe that voice-activated systems may distract drivers. It is a fact that voice-activated systems have been designed so that drivers keep their hands on the wheel and eyes on the road. However, a new study reveals that these same systems can be a cause of distraction by taking the driver’s mind off the road. The research was carried out by David Strayer who is a neuroscientist at the University of Utah. According to him, talking on the phone while driving creates the same level of crash risk as someone with 0.08 blood-alcohol level. David Strayer is a renowned neuroscientist who has been applying the principles of attention science to driver behaviour for nearly two decades. His research showed that speech-to-text technology caused a higher level of cognitive distraction than any other activities. This may be because more efforts are required to talk to the dashboard than talking to a real person. The neurologist states that a driver needs up to 27 seconds to regain complete attention after using voice assistants.
Kathy Lane, a spokeswoman for the National Safety Council argues that anything that takes your attention away from driving is not something you want to engage in.
In-car payment technology may encourage higher spending
Even though it is not yet proven, experts believe that in-car payments may encourage more spending. The ability to shop and complete payments from the comfort of your car is definitely a desired convenience.
Whether you like it or not, the automotive industry will not stop investing in cutting-edge innovations. Furthermore, the advantages of in-car payment systems far outweigh their disadvantages. Soon, other major car brands will start embracing in-car payment technology to satisfy the growing needs and demands of their consumers.
Article published in EMV and Smart Payment Cards :