The global in-car payment market is set to exceed $580bn (£433bn) by 2030, fuelled by an estimated 895 million connected vehicles.

Services such as parking and EV charging (70%) will drive market potential for in-car payments

Services such as parking and EV charging (70%) will drive market potential, along with e-commerce platforms for goods and services such as food, beverages and entertainment (25%) and additional functionalities (5%), according to Pairpoint.

A new report from the Economy of Things solutions provider explores the market potential of in-car payments, predicting that the market will grow at an annual rate of 130% from 2023 to 2030.

In-car payments allow drivers to conduct transactions automatically and securely through the vehicle’s software, providing a simpler, faster and more secure user experience compared to traditional methods.

The 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, EV charging and parking.

The study also finds that the fast adoption of technologies such as SIM cards for vehicle identification, biometric authentication, artificial intelligence (AI), blockchain, payment wallets, Near Field Communication, advanced connectivity, and cloud tokenisation will enable a more secure and seamless in-vehicle payment experience.

To ensure the success of in-car payments, the study emphasises the need for a broad and collaborative ecosystem. The automotive industry, together with telecom operators, should focus on partner integration, process automation and creating a secure system to minimise transactional risks.

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, refuelling and more. At Pairpoint we are dedicated to helping lend our technology to help build a robust partner ecosystem, driving both adoption and scalability.”

Pairpoint’s full study is available online here.