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HOW TO CHARGE
FOR CHARGING?
CHOOSING THE RIGHT
STRATEGY FOR BILLING
AND PAYMENTS FOR EV
CHARGING
TO PAY OR
NOT TO PAY?

FREE CHARGING
Good for EV promotion
But the future development of EV
ecosystem needs a solid busine...
THE COST OF EV CHARGING

INVESTMENT
COSTS

HARDWARE
MAINTENANCE

SOFTWARE
MAINTENANCE

OPERATIONAL
COSTS

CHARGED
ELECTRIC...
KEY QUESTIONS IN COMMERCIAL MODEL

WHAT DO WE SELL?

HOW DO WE SELL IT?

HOW DO WE GET THE
MONEY?
WHAT ARE WE
SELLING EXACTLY?
ELECTRICITY?
DRIVING RANGE?
TIME IN CHARGER?
PERMISSION TO USE QC?
REQUIREMENTS
FOR COMMERCIAL
PLATFORM

PRICING FLEXIBILITY
• kWh-based pricing
• Session-based pricing
• Time-based pricing...
THE STRUCTURE OF DYNAMIC RATE
NOW! Platform enables charging station/network service operators to set-up
dynamic kwh- or t...
MULTIPLE RATES ON DIFFERENT TIME-FRAMES
NOW! Platform enables charging station/network service operators defining time-bas...
IMPROVE CUSTOMER LOYALTY WITH SUBSCRIPTION
PACKAGES
NOW! Platform enables adding subscription fee (monthly fee, for instan...
HOW DO WE SELL IT?
NOW! PLATFORM
FEATURES

SELF-SERVICE
Registration over the website or in mobile app

AUTOMATED APPROACH
Launch charging us...
WHEN TO CHARGE FOR CHARGING?
Based on the EV driver classes, it is possible to set-up various billing options within
NOW! ...
HOW TO GET THE
MONEY
IN A REASONABLE
WAY?
COMPARING DIFFERENT PAYMENT METHODS
When offering different payment methods to customers, it is important to consider cost...
CASHLESS PAYMENTS AND MOBILE WALLET EXPLAINED

CHOOSE THE SERVICE

MOBILE WALLET GETS
THE REAL MONEY
FROM THE PAYMENT
SOUR...
PAYMENT SOURCES SUPPORTED BY NOW! PLATFORM
NOW! Platform supports various payment processing e.g. real-time payments using...
CHECK LIST

To make the EV charging service sustainable it is
extremely important to choose the right payment
solution.

F...
SEE ALSO: NOW! INNOVATIONS CASE STUDIES

www.nowinnovations.com/
case-studies

To read the case studies
scan the QR code o...
THANK YOU!

JARMO TUISK
Director, electric mobility solutions
Mob:

+372 52 01443

Office:

+372 6 023 046

Skype:

jarmot...
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How to charge for charging? NOW! Innovations Insight series

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How to charge for charging? NOW! Innovations Insight series

  1. 1. HOW TO CHARGE FOR CHARGING? CHOOSING THE RIGHT STRATEGY FOR BILLING AND PAYMENTS FOR EV CHARGING
  2. 2. TO PAY OR NOT TO PAY? FREE CHARGING Good for EV promotion But the future development of EV ecosystem needs a solid business model.
  3. 3. THE COST OF EV CHARGING INVESTMENT COSTS HARDWARE MAINTENANCE SOFTWARE MAINTENANCE OPERATIONAL COSTS CHARGED ELECTRICITY ELECTRICITY CONSUMED BY CHARGER GRID CONNECTION TRANSACTIONS
  4. 4. KEY QUESTIONS IN COMMERCIAL MODEL WHAT DO WE SELL? HOW DO WE SELL IT? HOW DO WE GET THE MONEY?
  5. 5. WHAT ARE WE SELLING EXACTLY? ELECTRICITY? DRIVING RANGE? TIME IN CHARGER? PERMISSION TO USE QC?
  6. 6. REQUIREMENTS FOR COMMERCIAL PLATFORM PRICING FLEXIBILITY • kWh-based pricing • Session-based pricing • Time-based pricing • Subscription-based pricing TRANSACTION CONTROL • Authorized sessions • kWh-based limits • Session duration control • Credit limits
  7. 7. THE STRUCTURE OF DYNAMIC RATE NOW! Platform enables charging station/network service operators to set-up dynamic kwh- or time-based rates using rate frames logic. EXAMPLE: The more the EV driver chargers the cheaper it is to charge the vehicle. One rate – three frames Frame 1 Unit Duration Granularity Price per unit KWH up to 5 KWH 0.1 KWH 0.5 EUR Frame 2 Unit Duration Granularity Price per unit KWH 5-10 KWH 0.1 KWH 0.3 EUR Frame 3 Unit Duration Granularity Price per unit KWH 15- …KWH 0.1 KWH 0.2 EUR
  8. 8. MULTIPLE RATES ON DIFFERENT TIME-FRAMES NOW! Platform enables charging station/network service operators defining time-based rates. EXAMPLE: It is possible to combine time-based and rate-based pricing. It can be cheaper for an EV driver to charge over night. 07:00 – 21:00 Rate frame 1 Unit Duration Granularity Price per unit KWH up to 5 KWH 0.1 KWH 0.5 EUR 21:00 – 07:00 Rate frame 2 Unit Duration Granularity Price per unit KWH 5- unlimited KWH 0.1 KWH 0.2 EUR Rate frame 1 Unit Duration Granularity Price per unit KWH up to 5 KWH 0.1 KWH 0.3 EUR Rate frame 2 Unit Duration Granularity Price per unit KWH 5- unlimited KWH 0.1 KWH 0.2 EUR
  9. 9. IMPROVE CUSTOMER LOYALTY WITH SUBSCRIPTION PACKAGES NOW! Platform enables adding subscription fee (monthly fee, for instance) and combine this fee with lower tariffs. EXAMPLE: SPECIAL RATES FOR PREMIUM USERS – FIRST 5KWH FOR FREE SPECIAL RATE CLASS MONTHLY FEE 10 EUR Rate frame 1 Unit Duration Granularity Price per unit KWH up to 5 KWH 0.1 KWH 0 EUR Rate frame 2 Unit Duration Granularity Price per unit KWH 5 KWH- unlimited 0.1 KWH 0.11 EUR
  10. 10. HOW DO WE SELL IT?
  11. 11. NOW! PLATFORM FEATURES SELF-SERVICE Registration over the website or in mobile app AUTOMATED APPROACH Launch charging using mobile phone, RFID-card, pin-pad. MULTIPLE BILLING OPTIONS • Pre-paid accounts • Pay-as-you-go • Post-paid
  12. 12. WHEN TO CHARGE FOR CHARGING? Based on the EV driver classes, it is possible to set-up various billing options within NOW! Platform. PRE-PAID PAY-AS-YOU-GO Collect payments from users in advance before using the services. Collect payments as the services are used, after each charging session. Advantages: • Credit risk management • Suitable for non-regular customers. • • User registration required over the web or app. The user wallet has to have funds available at all times prior to using of services. User registration required over the web or app. Payment source, which will be billed after each transaction has to be linked to the account. Advantage: improved cash flow Disadvantage: high transaction costs POST-PAID Services are offered to customers throughout month, and in the end of the month the customers are billed to pay for the services within the given time frame. • Advantage: low transaction costs. • Disadvantage: higher credit risk. User registration required over the web or app. At registration user is assigned a credit limit. Monthly invoices can be paid by bank transfer or credit-card.
  13. 13. HOW TO GET THE MONEY IN A REASONABLE WAY?
  14. 14. COMPARING DIFFERENT PAYMENT METHODS When offering different payment methods to customers, it is important to consider costs associated with each method, as they can significantly increase the cost of hard and thus the service. Providing physical credit card or cash POS hardware makes sense only with high turnover services. CREDIT/DEBIT CARD POS + CASH CASHLESS PAYMENTS Adds hardware costs 5001000EUR per charger Same costs as in credit/debit card POS + CASH HANDLING COSTS 0.2% - 0.5% of sum, minimum 15-20EUR per one money collection routine NO ADDITIONAL HARDWARE COSTS Adds maintenance costs 15-20EUR per charger per month minimum Transaction costs 2-3% of sum, fixed minimum 0.2-0.5EUR + System certification costs NO ADDITIONAL MAINTENANCE WITH E-INVOICES NO TRANSACTION FEES
  15. 15. CASHLESS PAYMENTS AND MOBILE WALLET EXPLAINED CHOOSE THE SERVICE MOBILE WALLET GETS THE REAL MONEY FROM THE PAYMENT SOURCE AUTHORIZE TRANSACTION STORE THE TRANSACTION IN YOUR MOBILE WALLET IN PAYMENT SYSTEM CREDIT CARD BANK ACCOUNT PAYPAL PAYMENT SYSTEM DISTRIBUTES MONEY TO SERVICE PROVIDERS
  16. 16. PAYMENT SOURCES SUPPORTED BY NOW! PLATFORM NOW! Platform supports various payment processing e.g. real-time payments using credit cards or direct debit payments, manual payments, etc. Since transaction costs depend on the payment source, you may choose the right mix depending on the nature of your business and customers. “REAL-TIME” DEBIT CARDS: • VISA • MasterCard • Maestro CREDIT CARDS: • VISA • MasterCard • American • AMERICA EXPRESS • Diners Club • JCB ONLINE PAYMENT SOURCES • PayPal • Skrill • Other ASYNCHRONOUS SEPA DIRECT DEBIT MANUAL SEPA BANK TRANSFER CASH PAYMENTS
  17. 17. CHECK LIST To make the EV charging service sustainable it is extremely important to choose the right payment solution. FLEXIBLE TARIFF ENGINE VERSATILE BILLING MODELS CASHLESS PAYMENTS VARIOUS PAYMENT SOURCES
  18. 18. SEE ALSO: NOW! INNOVATIONS CASE STUDIES www.nowinnovations.com/ case-studies To read the case studies scan the QR code or click the link above
  19. 19. THANK YOU! JARMO TUISK Director, electric mobility solutions Mob: +372 52 01443 Office: +372 6 023 046 Skype: jarmotuisk jarmo.tuisk@nowinnovations.com www.nowinnovations.com

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