2023 Roundup: Navigating the Rise of In-Car Payments

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Car-venient Fintech: Buckle Up for In-Vehicle Payments!

Ever binge-watched the futuristic Bond or Star Wars movies, marvelling at those high-tech cars and imagining the convenience of making payments directly from the driver’s seat? Guess what, in the financial world, paying for stuff straight from your ride is no longer a cinematic fantasy. 

Picture this: you roll up to a fuel station (for the eco-conscious, an EV charging station), or parking spot, and voila! Your dashboard lights up, presenting a dazzling array of payment choices. You select and authenticate your transaction with biometrics or voice-enabled authentication. The car, sly as a secret agent, smoothly handles your parking bill, winking at the future. It’s a quirky ride, and automotive manufacturers are totally grooving with this tech-tastic twist!  

As of 2023, several contenders have thrown their hats into the in-vehicle payment arena. By collaborating with Payment Service Providers (PSPs), car manufacturers are revving towards weaving in-car payments into the very fabric of the driving experience. From covering your Starbucks tab to settling your car dues at the toll or parking station, in-vehicle payments are reshaping the transaction landscape for individuals.

Let’s cast our gaze upon a handful of collaborations in 2023 that highlighted the trend – 

  • Through its Mercedes pay+ division, Mercedes-Benz partnered with Mastercard to introduce an in-car payment solution featuring fingerprint authorisation.
  • Moving the needle on in-car payments, Visa joined forces with various auto industry players: teamed up with Car IQ for seamless transactions—from fuel to insurance, launched a native payment system with Mercedes-Benz, and introduced a cutting-edge tokenisation platform with Sheeva.AI for in-vehicle commerce.
  • Hyundai introduced Hyundai Pay, an in-vehicle payment system allowing drivers to purchase through the vehicle’s touchscreen with stored credit card details. Starting with the 2024 Hyundai Kona, Hyundai Pay will expand to nine more models. It partnered with Parkopedia to enable a parking payment system at 6,000 locations.

Revving Up the Wallets: Unveiling the Drivers of In-Car Payments

As per Juniper Research, the total volume of in-car payments is set to reach approximately $86B by 2025. In the urban landscape, the rise of the ‘wallet on wheels’ is driven by multiple factors, allowing drivers to conduct payment transactions securely within the confines of their vehicles. These drivers include –

  1. Growing traffic congestion – Rising traffic congestion on roads, toll plazas, gas stations, and parking areas has prompted the development of payment systems that expedite and standardise the payment process.
  2. Rise in contactless payments – The surge in user preference for contactless payments and the demand for seamless payment systems at parking spaces, toll plazas, and gas stations drive in-car payments. 
  3. Adoption of network tokens – Digital wallets and banking apps are introducing innovative contactless payment solutions from consumer devices by using network tokens, guaranteeing the secure handling of payment details by substituting sensitive information with unique tokens. This advancement facilitates a smooth payment process, including remote authorisation.


As we charge ahead into 2024, the momentum behind the widespread embrace of in-vehicle payments is electrifying! It’s not just automotive giants steering this revolution; we are also witnessing the entry of other players, such as bigtechs and paytechs, into the driver’s seat of innovation.

Buying a car and gaining not just a set of wheels but a sleek, integrated payment system that transforms your driving experience might just become the new norm in the coming years. With seamless integrations and evolving technologies, the anticipation is for a landscape where our vehicles become more than transport—they become smart, secure hubs for convenient financial interactions. We eagerly await the transformative journey that lies ahead.


Fintech Analyst

Samridhi is a fintech analyst within the WhiteSight team, researching fintech trends and providing insights into everything from new markets and investment opportunities. Just like she connects the dots to reveal the big picture of the ever-evolving fintech landscape, she has a keen eye for discovering the brushstrokes of Madhubani paintings and the contours of the hills.

Senior Branding Associate

Kshitija is a senior branding associate at WhiteSight, crafting branding strategies and fintech content. When she's not conjuring up new ideas for the company, you can find her dabbling in new hobbies and documenting her experiences through writing and short films.

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