Payment Rails on the Open Road: Why Boosting In-Car Payments Requires Security

The automotive industry is undergoing a major transformation, accelerated by the electric vehicle revolution and the push towards connected experiences. At CES 2024 in Las Vegas, car manufacturers are showcasing their latest vehicles, equipped with new electric technologies and enhanced digital features aimed at standing out in a competitive market, according to Mastercard Newsroom. 

One area ripe for innovation is in-vehicle payments. Car owners today expect the same level of convenience they enjoy in other aspects of their lives, whether it’s ordering a coffee or paying a toll. In-vehicle payments can transform experiences like fueling, parking, or paying for tolls, making transactions seamless and accessible directly from the car’s cockpit. This not only saves time but also eliminates the hassle of managing multiple merchant apps.

Beyond routine transactions, carmakers can leverage in-vehicle infotainment systems to offer occupants products or services such as branded items, booking a tire change, or even temporary vehicle upgrades like extended battery range. This further extends opportunities for brands to enhance their value propositions.

A key enabler of this change is security. Traditional authentication methods, such as entering a password, aren’t suitable for drivers on the move. Biometric technologies, such as fingerprint or facial recognition, are emerging as ideal solutions to ensure both security and convenience. As highlighted by Will Judge, partnerships like the one between Mastercard and Mercedes-Benz, which enables fuel payments directly via a vehicle’s fingerprint scanner, illustrate this trend.

The future of the automotive experience involves a collaborative effort among automotive, technology, and payment industries. By combining their expertise, they can develop innovative in-car payment systems that cater to the digitally savvy consumer.