In-vehicle payments will total $1 billion by 2023: Gartner

Transaction payments made through a vehicle will total $1 billion by 2023 as compared with less than $100 million in 2020, according to a Gartner report.
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Car drivers can make in-vehicle payments by using applications such as Alexa, Xevo Market or the Banma platform to purchase fuel, food, or pay for parking. The types of services available will continue to increase as automakers, merchant brands and services, and software suppliers’ partnerships proliferate.

In addition to making in-vehicle payments through a cloud platform that connects to the car, car drivers will be able to use a third-party app mirrored on the screen from their phones or through a smart wallet based on blockchain.

Blockchain enables drivers earn cryptocurrency which can be used for in-car purchases, or through a digital wallet built into the car. A digital wallet could create the capability of the vehicle to not only make payments but accept payments.

By 2025, the automotive retail landscape will be disrupted, with 20 percent of all new cars sold entirely online. “The COVID-19 pandemic has accelerated the sales of cars online and convinced a growing number of customers to avoid showrooms for future purchases,” said Pedro Pacheco, senior research director at Gartner.

Less than 1 percent of new cars are sold online, but an increasing number of automakers are deploying online platforms to fully transacting the sale of a vehicle from ordering to finance, purchase and home delivery.

Challenges in online sales platform:

The entire online sales model needs to provide high levels of customer convenience and simplicity which means eliminating a lot of bureaucracy and significant time investment to buy a car.

The process needs to offer reassurance – all the steps and information that form the online purchase need to be crystal clear in order to eliminate any possible customer frustration. The process should also include a return policy which gives customers a feeling of security.