Car IQ, a leading innovator in vehicle technology, has joined forces with Visa, a global leader in digital payments, to introduce in-car payments, allowing vehicles to seamlessly interact with Visa’s extensive network of merchants and banks, according to Finextra
. Through the integration of Car IQ Pay’s vehicle wallet, drivers will be able to make purchases for fuel, tolls, parking, insurance, service, and repairs without the need for a physical payment card.
By leveraging Car IQ Pay’s cutting-edge technology, vehicles will have the capability to establish their own payment accounts, enabling direct transactions with merchants. This partnership with Visa significantly expands the reach of Car IQ’s technology and presents an opportunity for both companies to capture a substantial portion of the growing connected vehicle payment market, projected to reach $600 billion by 2030, according to Ptolemus.
A key aspect of this collaboration is Car IQ’s ability to integrate vehicle data into the payment process. This integration allows for new contextual payment experiences, including real-time offers and personalized rewards that benefit fleets, drivers, and merchants. Working closely with Visa, Car IQ Pay utilizes real-time connected vehicle data before, during, and after each transaction. The collaboration harnesses Car IQ’s technology, known as Know Your MachineTM, which verifies a vehicle’s identity, enabling all types of vehicles to conduct direct transactions with merchants.
Veronica Fernandez, North America Head of Visa Business Solutions, emphasized the importance of cost management, transparency, and seamless experiences in commercial fleet payments, which currently exceed $80 billion across various payment methods. She expressed enthusiasm about driving the growth of vehicle-based payments through the collaboration with Car IQ, which offers enhanced data capabilities for real-time business decisions.
Car IQ CEO Sterling Pratz highlighted the significance of the collaboration with Visa, stating that it would accelerate the adoption of vehicle payments and seamlessly integrate them into fleet operations and, eventually, consumer experiences. Pratz described Car IQ’s vehicle wallet as a secure solution that allows banks and merchants to trust payments from vehicles and other Internet of Things (IoT) devices, leveraging the Visa network.
Mark Vena, CEO and Principal Analyst at SmartTech Research, commented on the emerging trend of «smart» vehicles seamlessly facilitating digital payments. He emphasized that Car IQ’s collaboration with Visa showcases the potential of this new ecosystem, which brings substantial productivity benefits to routine vehicle-related charges.
Additionally, Car IQ is working closely with auto Original Equipment Manufacturers (OEMs) to embed these payment capabilities directly into consumer vehicles. Recently unveiled at CES, the Car IQ Pay in-dash vehicle wallet establishes a connection between vehicles and merchants on the Visa network, enabling payments directly from the car’s infotainment system.
While the initial focus is on vehicle payments, Car IQ’s platform is designed to support payments from any IoT device effortlessly. The company has already received interest in connected «smart» city applications and anticipates expanding into connected home appliances. Car IQ’s CEO, Sterling Pratz, envisions a future where individuals have the option to link their cars, home appliances, and more directly to their bank accounts for seamless transactions.
The partnership between Car IQ and Visa marks a significant milestone in the evolution of in-car payments. By leveraging Car IQ Pay’s technology and incorporating vehicle data, this collaboration promises to deliver enhanced payment experiences and improve productivity in the realm of vehicle-related charges. With plans to expand beyond vehicles, Car IQ’s innovative platform has the potential to revolutionize the way IoT devices make payments.