Credit unions are being encouraged to focus on the rapidly growing in-car payment market, as recent research highlights this service’s increasing relevance. As vehicles become more connected, the ability to conduct transactions from inside the car is transforming the driving experience, with experts predicting substantial growth in this sector over the next decade, as stated in CUtoday.info News.

According to a market study by GlobalData, the global automotive payment market is expected to reach $580 billion by 2030, driven by the proliferation of connected vehicles, set to increase from 430 million to 895 million during the same period. The study reveals that payments for parking and EV (electric vehicle) charging will account for 70% of the market, followed by e-commerce purchases such as food, beverages, and entertainment at 25%, with the remaining 5%involving other functionalities.

“This technology aims to redefine the driving experience by enabling a wide range of services, including pay-as-you-drive insurance, remote vehicle monitoring, real-time information for drivers, and automatic emergency calls. One of the biggest opportunities and benefits identified is the ability to make payments directly from the car without the need for physical cards or mobile apps, including for fuel, electric vehicle (EV) charging, and parking,” noted GlobalData.

The report, developed by STL Partners in collaboration with Pairpoint, a provider of solutions for the Economy of Things, underscores how embedded payment systems are changing the way consumers engage with modern vehicles.

Jorge Bento, CEO of Pairpoint, explained the significance of native payment functionality in connected vehicles. “Advanced connectivity is a catalyst for new ways of interacting with modern vehicles,” Bento stated. “Adding native payment functionality will allow for more secure, real-time, automatic usage of day-to-day services such as parking, EV charging, refueling, and more.”

With this level of integration, the driving experience is being reshaped. Consumers can now pay for services seamlessly from their cars, eliminating the need to fumble with physical cards or mobile apps. Bento emphasized that beyond convenience, these systems also enhance security by facilitating encrypted, real-time payments.

The shift toward in-car payments reflects the broader movement within the Economy of Things, where connected devices actively communicate with each other and with service providers. This evolution creates new possibilities for financial institutions, including credit unions, to explore partnerships and technology solutions that cater to customers' evolving needs.

Credit unions, traditionally focused on providing competitive and customer-centric services, may find in-car payments a valuable addition to their portfolios. As connected vehicles become a standard feature and consumer demand for frictionless transactions increases, credit unions have the opportunity to position themselves at the forefront of this technological change.

The research demonstrates how in-car payment systems are no longer limited to early adopters but are quickly becoming mainstream. This trend presents not only new revenue streams but also the chance to enhance customer engagement through personalized, integrated payment solutions.