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What Are In-Vehicle Payments and How to Develop Such Solutions?

September 16, 2021

Inspired by the growing popularity of contactless payment after the COVID crisis, the in-vehicle payment solution has become a new trend in the post-COVID world. The data by Facts and Factors show that the market size of in-vehicle payments will reach $7.66 billion by 2026 from $3.09 billion in 2020. 

Recently, the payment processors, such as PayPal, are collaborating with the automobile industry to bring these latest payment solutions to the market. The companies that have reported a major contribution to the in-vehicle payment trend are BMW, General Motors Co., Honda Motors Co. Ltd., and more.

What is the In-vehicle Payment?

As the name suggests, the in-vehicle payment system allows drivers to pay for goods and services from the vehicle. Whether you are grabbing a coffee or getting fuel, the payment for just about any goods and services can be processed without the drivers having to step out of the car. So far, this payment system is expected mainly at tolls, gas stations, and parking spaces. 


Distance has become a crucial safety protocol in the post-covid-era, but despite the Government’s regulations, people are gathered in large crowds at parking spaces and fuel stations. The main purpose of launching the in-vehicle payment system is to eliminate customers’ struggles and save them time. Technically, it works as a virtual vehicle wallet that enables people to purchase and pay for fuel, parking lots, and other services without any hassle. Here are a few popular use cases of the in-vehicle payment solution.

  • It Enables Smart Parking

Finding appropriate parking lots is one of the biggest challenges for drivers. Whether it is a crowded shopping mall or the airport, getting your parking spot instantly is super difficult these days. However, the integration of the in-vehicle payment system with the IoT-powered applications can help drivers navigate to the available parking spaces and pay from the vehicle itself. 

The available parking lots are visible to the drivers around the parking space, thus offering hassle-free and the best parking experience. The driver can book the parking space from the vehicles and make the payment using any convenient payment mode. The whole process is executed without the driver having to leave the vehicle. Not only does it offer safety, but it is the most convenient way of getting your parking space.

  • Contactless Payment at the Fuel Station

The geofencing technology has already made it easier for drivers to get notifications about the fuel pumps located nearby. The integration of geofencing with the in-vehicle payment technology will not only enable drivers to locate gas pumps but process the transaction from the dashboard. The payment can be made when the driver is on his way to the fuel station

  • Smart Toll

Nothing is more annoying for a driver than the traffic at the toll booth. One way to make this process hassle-free is by introducing the in-vehicle payment system and embedding it in the vehicle’s license plate. With such a system in place, a certain amount of fee will be deducted from the driver’s account as soon as they cross the booth. In addition to eliminating the unnecessary traffic at the booth, smart tolls reduce pollution and make travelling convenient for drivers and passengers.

  • Automated Payments for Repairs

There are ongoing rumor’s about Tesla launching a system that supports self-analysis for repair and maintenance requirements. With these systems, cars can detect any repair or replacement requirements automatically and estimate the cost of repair. The advanced model of this technology will enable drivers to check and compare the repair cost before they head to the automobile repair shop

How to Develop In-vehicle Payment Systems?

Only a few customers have linked their smartphones to their vehicles. To be more precise, there are only 16.7% of people with their mobiles connected to cars. Mobile connectivity with the vehicle has become a necessity in today’s age when locating places and making contactless payments have become a thing. 

The main objective of the in-vehicle payment system is to help customers completely abandon their phones in the vehicle. Whether you want to find the nearest fuel station or pay for the groceries you bought on your way, the in-vehicle payment system can make everything possible for you. Here are a few important steps to building the in-vehicle payment units.

Infotainment Systems: A vast majority of cars come equipped with an infotainment system that can be used for a lot of activities. The developers need to incorporate the in-vehicle payment system into the infotainment units to streamline transactions and ensure faster and one-click payments.

Turning Vehicles into an Automated Payment System: Bluetooth and the RFID tools can turn your vehicle into an automated payment system where the payment for the toll, fuel, and other purchases can be made in simple clicks. The developers need to integrate the payment system with the infotainment units using the third-party API.

A Digital Wallet: The developers need to build a digital wallet for the vehicle to offer customers the convenience of making transactions using a comfortable payment mode. 

Customized to Individual’s Requirements: The in-vehicle payment systems are designed to make the lives of commuters easier. Building a system that enables drivers to pay for fuel and parking lots will not make the in-vehicle unit stand out. The developers should rather focus on a unit that’s customized to the commuter’s requirements. It should enable them to find and pay for the car repairs from the vehicle, find the nearest fuel stations, choose the best automobile repair shop based on the repair quotes, and so on.

Final Words

It’s obvious that convenience is the first and most important reason for the growing popularity of in-car payment systems. More and more people have started to embrace the system because of the safety concerns after the COVID outbreak. 

In addition, it is pretty convenient for customers to pay for fuel, repairs, and other purchases without stepping out. A solid and robust in-vehicle payment system can bring convenience, safety, and innovation to the way payments are processed.

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