The document discusses the rise of in-vehicle payment systems driven by increased digitalization, particularly within the automotive industry, as consumer preferences shift towards online purchases and technology integration. Forecasts predict that by 2026, almost 95.2 million vehicles will be capable of making payments, reflecting strong consumer interest in such functionalities. Additionally, the document emphasizes the need for secure transaction solutions that comply with regulatory standards to enhance user experience and trust in in-car payment options.

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In-Vehicle-Payment
How the vehicle learnt to pay

2. The surge in digitalisation is driven by the growth of connected devices
(1) Cisco Annual Internet Report (2018-2023) White Paper https://www.cisco.com/c/en/us/solutions/collateral/executive-perspectives/annual-internet-report/white-paper-c11-741490.html.
(2) eMarketer – Global Ecommerce Forecast Report May 2021: Ecommerce Continues Strong Gains Amid Global Economic Uncertainty
(3) Statista, https://www.statista.com/topics/3881/online-shopping-in-europe/#dossierKeyfigures, July 2021
(4) VisaNet Data, July 2021, https://www.visa.co.uk/about-visa/newsroom/press-releases.3088603.html
>4X
more connected
devices in Europe than
population by 20231
65%
of global e-commerce
sales are transacted
on mobile devices2
311m
active European
e-commerce
consumers3
40%
increase in e-commerce
transactions during
the pandemic in 20
European countries4

3. Growth of Connected Car & In-Car Payments
Growth of Digitalization & Adopting the
Agency Model
Shift Toward Electrification
Digital disruption and sustainability are revolutionising the automotive industry
Picture: Picture from PowerPoint Stock Images

4. The automotive industry is shifting gears
1. Capgemini Invent, 2020, Agency Sales Model - Automotive-Agency-Sales-Model_POV_Capgemini-Invent.pdf.
2. Automotive News Europe, 2022, Adopting the agency model: How OEMs are mastering a new retail approach: Sponsored content provided by MSX International - https://europe.autonews.com/sponsored/adopting-agency-model-how-oems-are-mastering-new-retail-approa
75% of consumers expect to
be able to purchase their
next car online1
95% of consumers require a
seamless, simple, and efficient
ordering process1
New customer journeys
 COVID-19 was a catalyst for digitalization in
automotive sales1
 Growth in EV sales is also pushing a new wave of
consumers towards online purchases and omni-
channel experiences2

5. 0
50
100
150
200
250
2019 2020 2021* 2022* 2023* 2024* 2025* 2026* 2027* 2028*
Global Connected Car Market Forecast
Global connected car* market expected to reach 192 Billion U.S. dollars in 2028
Statista, 2021, Size of the global connected car market between 2019 and 2020, with a forecast through 2028 - https://www.statista.com/statistics/725025/connected-cars-global-market-size-projection/.
Market
Size
in
Billion
U.S.
Dollars
*Connected car is defined as a car that can be linked to other services and devices via a network ** BMW.com
Experts define a connected car as a car that can be linked to other services and devices via a network. Along with
laptops and mobile phones, this also includes other connected car technology, your own home, office, or parts of
infrastructure such as traffic signals or emergency centres**

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“By 2026, there will be almost 95.2 million
vehicles worldwide making payments, from
just 2.3 million in 2021.
Juniper Research
Juniper Research, 2021, In-vehicle Payments: Market Forecasts, Opportunities & Challenges 2021-2026 - In-vehicle-Payments-2021-2026-Strategy-
Forecasts.pdf (visa.com) )

7. 71%
of all commuters would shop more if the ability to shop and
pay were integrated into their cars
of drivers think it would be useful if their vehicle’s HMI
allowed them to order food or coffee for pickup
69%
Say it would be useful to be able to pay for fuel
Customer preferences indicate a high interest in an in-car option
Star, 2021, How OEMs can drive adoption of in-car payment solutions while improving customer experience - In-car payment solutions | Star Trend Report Data has been provided by TSYS study, Xevo’s Connected Car Report, 2018.
75%

8. Features
on
demand
Service
EV
Charging
Parking
Petrol
Market
place
Pre-
Ordering
There are numerous use-cases for in-car payment
Picture from PowerPoint Stock Images

9. Besides technology, regulation also plays a role - Strong Customer Authentication
These are only examples
European Banking
Authority imposes
Strong Customer
Authentication (SCA)
for all electronic
transactions through
PSD2 regulation
Comision Nacional
Bancaria y de Valores
(CBBV) imposes Strong
Customer Authentication
for all electronic
payments by March 26
2019
Payment Association of
South Africa imposes 3D
Secure on all online
credit card transactions
Reserve Bank of India
(RBI) mandates multi-
factor authentication
for transactions
>2000rupees
Monetary Authority
of Singapore
imposes on all
Singaporean
banks the use of 3-
D Secure based
on OTP
SCA regulations
coming into play
in the nearby
future

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Our vision is to create options that offers an in-car payment
experience that's universal, offering the security and
reliability you've come to trust with Visa.

11. The solutions for in-vehicle-
payment with Visa
A simplified construction kit
for implementation
Visa Token Service
(VTS)
[Security]
FIDO
[Authentication in-car]
Visa Cloud Token
Framework (CTF]
[Device – binding]
Visa Payment
Passkey
Service to
validate
authentication
[FIDO-Server]
[Liability Shift, Scale
and Compliance]
Issuer recieves
authentication
evidence and can
make authorization
decision
[Transaction
decision]
• Qualifies for liability benefits
• Helps support SCA compliance (in
EU)
• Increased security with tokens
• Seamless authentication UX (the
right amount of friction) using FIDO
• Register once, use everywhere
• No need for SMS OTPs or
passwords, phishing resistant
• Consistent & familiar experience
• Reduced fraud
• Reduced declines - increased customer
satisfaction
• Reduced cost of authentication solution
maintenance
Merchants Cardholders Issuers

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