The Potential of Payments in Charging Electric Vehicles
As Europe accelerates towards the electric vehicle era, the cumbersome payment experience at charging points has emerged as a potential obstacle. However, this is poised to change with new regulations sweeping across the continent, as stated in FinTech Magazine.
The EU recently introduced the Alternative Fuels Infrastructure Regulation (AFIR), mandating that all charging points in EU countries offer more convenient payment options to promote the adoption of electric vehicles. With the new EU rules set to take effect by 13th April 2024, and the UK also contemplating its own legislation, it’s time for charging point operators to reconsider their payment infrastructure.
Peter O’Halloran, Head of Enterprise and Digital Commerce at Fiserv, discusses how streamlining payment solutions for charging points can empower drivers. He emphasizes the need for drivers to be able to pay easily with cards or contactless devices, without the need for subscriptions. This shift aims to standardize the customer experience and make the payment process more convenient and familiar.
«Depending on where they choose to charge that day, drivers are forced to register for and use a range of apps for each charging point provider to manage their payments,» says O’Halloran. «These closed-loop payment options not only add friction but also require drivers to commit to subscriptions and higher prices to charge their car.»
The new rules outlined within AFIR mandate more convenient and familiar card and contactless payment methods to standardize the customer experience. The emphasis is on empowering drivers to use barrier-free payment methods that are convenient and familiar to them.
«This presents a big project for any retailer that is hosting a charging point,» says O’Halloran. «Payment providers have an important role here to ease the burden for retailers, but also to help them capitalize on the opportunity ahead.»
Retailers are seeking solutions that are easily implemented as they navigate legal and technology requirements and aim to simplify the customer payment experience. Providing a premium payment experience at charging points can help retailers secure a competitive advantage and use their parking space for additional revenue.
«Those who offer the simplest experience and a wide choice of payment options can attract new customers and increase dwell time in-store, with the potential to generate even more turnover,» explains O’Halloran.
Payment providers that can deliver easily integrated, customer-friendly solutions have an opportunity to effectively elevate the role EV charging payment plays for retailers in the drive for revenue and increased customer loyalty.