In-Vehicle Payments Market Size, Share, By Product (Car and Vans), By Type (NFC based, APP based, QR code based, and Credit Card based), By Application (Parking Management, Drive-through Purchasing, and Toll Collection), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

In-Vehicle Payments Market Size was valued at US$ 7.2 billion in 2024 and is projected to grow at a CAGR of 19.2% to reach US$ 35.7 billion by 2034.

The in-vehicle payment solution is an electronic payment system that eliminates the need for extra payment devices by allowing people to pay for products and services directly from the vehicle. By removing operational bottlenecks at locations like gas stations, the payment system enables drivers to handle payment transactions efficiently. A smooth payment experience for the driver is also made possible by the integration of several in-vehicle payment systems with the infotainment system. As an illustration, specific systems automatically recognize when a motorist approaches a toll road or a parking garage and deduct the toll or parking immediately from the driver's associated account, saving them from having to do anything extra.

Utilizing the vehicle identification number (VIN) of the vehicle to start the payment process is another method in which an in-vehicle payment system encourages contactless payments. This removes the need for the driver always to have a physical device, such as a phone or smartwatch. The in-vehicle payment system encourages contactless purchases by giving drivers additional choices, convenience, and security. In addition to providing drivers the option to use their automobiles as a form of payment, in-vehicle payments are now developing at an incredibly rapid rate and offering the automotive industry a highly potential economic prospect. Customers' desire for in-vehicle payments is rising along with the convenience of in-vehicle commerce.

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

In-Vehicle Payments Market Drivers:

Technological advances

• The cutting-edge technologies that make the hyper-connected world possible also fuel in-vehicle payments. Technological developments have made it possible for customers to make safe payments while on the go, with linked automobiles becoming more common and cash purchases giving way to mobile payments using digital wallets and smartphone applications. To improve the payment experience, in-car payment systems use a number of cutting-edge technologies, including cloud token frameworks, telematics, near-field communication (NFC), and the Internet of Things (IoT).
• This cutting-edge technology has the power to change how drivers communicate with their cars entirely. Having real cash or credit cards is no longer necessary because drivers may approve payments by merely pressing a button. This lowers the possibility of theft or fraud and makes the experience smoother and more accessible. Additionally, drivers may use a variety of methods to make purchases using the contactless in-car payments system, including voice commands, wearables, and mobile apps.

Increased use of internet

• This market generates more revenue from increased automobile connectivity and high-speed Internet use, particularly at gas stations. The availability of the Internet, all stores, gas stations, and parking lots will greatly aid the market's expansion in the upcoming years. The demand for variable-type payment devices has grown due to rising smartphone usage and shorter payment processing times. Additionally, they will quicken the market's expansion in the following years.
• The market for these services is anticipated to expand along with the amount that developed and emerging countries are investing to support the expansion of the automotive sector. In the upcoming years, the industry will expand as a result of the government's increased number of programs to encourage digital payment solutions in both established and emerging nations.

In-Vehicle Payments Market Restrains:

High cost of equipment

• Compared to integrated systems, embedded in-vehicle systems are more expensive. This has an additional effect on the uptake of in-vehicle payment systems in developing nations or places with limited resources and infrastructure. The possibility of payment data leakage is another issue impeding the system's adoption. These factors are anticipated to impede the expansion of the worldwide market for in-vehicle payment services during the projected decade.

In-Vehicle Payments Market is segmented based on Product, Type, Application and region:

Product Insights:

• Car:

The greater integration of in-vehicle payment systems in cars is driven by the bigger customer base that uses cars. This also emphasizes the usage of in-vehicle payments in sophisticated entertainment systems.

• Vans:

This market sector serves ride-sharing services, delivery vehicles, and commercial fleets. By allowing cashless deliveries, tolls, and fuel purchases using in-car payment systems, these companies may operate more efficiently.

Among the segments mentioned above, the car segment dominates the market, as there are more cars than vans on the road, and linked car technologies are becoming increasingly popular. The expansion of this market is being driven by developments in mobile wallet integration and entertainment systems for cars.

Type Insights:

• NFC based:

Near-field communication (NFC) enables contactless payments by means of short-range radio transmission between an NFC reader at payment terminals and the car's embedded system. It delivers security and ease of use.

• APP based:

The In-Vehicle Payments App-Based system uses mobile wallet apps connected to the car's infotainment system. On the vehicle's display, users may use the app to start paying for parking, tolls, or drive-through sales. It provides adaptability and the opportunity for loyalty program integration.

• QR code based:

Payments may be made by scanning the QR codes at payment sites with the car's camera system. Provides a cheap option, but it might be less practical than app- or NFC-based techniques.

• Credit Card based:

Conventional in-car card scanners enable payments by swiping credit or debit cards. Although useful for those without NFC or app integration, their future expansion may be constrained by security issues and the popularity of contactless payment options.

Among the segments mentioned above, the one that dominated the market is the App-based segment as they are convenient, integrated with numerous features, and more secure than any other payment option.

Application Insights:

• Parking Management:

Using parking meters or mobile applications separately is optional for drivers to conveniently pay parking costs. Automated parking payments can be made upon entering or leaving a defined parking zone by integrating location services.

• Drive-through Purchasing:

By enabling consumers to place orders and make payments electronically from within their cars, drive-through restaurants and other similar businesses may profit from in-car purchases. This may benefit customer convenience and service speed.

• Toll Collection:

In-car payment systems can facilitate automatic payments made by cars as they pass toll booths. By eliminating the requirement to halt and make a cash payment, these systems ease traffic congestion and enhance flow.

Among the segments mentioned above the one that dominated the market is the Parking Management segment as Parking garages, lots, and on-street parking are just a few of the places where parking management solutions may be used. Compared to Drive-through Purchasing, which is restricted to particular locations, this expands the potential market.

In-Vehicle Payments Market Regional Insights

• North America's market is estimated to witness a significantly high revenue share over the forecast period because of the high adoption rate of connected automobiles. Additionally, with their capacity for innovation and ability to compete with the automotive firms, North American technology companies like Apple Inc. and Google Inc. have joined the automobile sector.
• Asia Pacific market is estimated to witness largest revenue share because of the strict legislation about data privacy and security. The presence of major vehicle manufacturers and the increasing prevalence of connected cars in the area all point to a promising market.
• Europe market finds lucrative market opportunities because of the stringent regulations regarding data privacy and security, presence of major automotive manufacturers and growing connected car penetration indicate promising market potential in the region.
• The Latin American market is growing gradually due to the growing middle class and rising internet penetration in the region.
• The Middle East and Africa market is an emerging market, driven by Africa's expanding economies and rising mobile phone usage.

In-Vehicle Payments Market Report Scope:

Attribute	Details
Market Size 2024	US$ 7.2 billion
Projected Market Size 2034	US$ 35.7 billion
CAGR Growth Rate	19.2%
Base year for estimation	2023
Forecast period	2024 – 2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Market Segmentation	By Product - Car and Vans. By Type - NFC based, APP based, QR code based, and Credit Card based. By Application - Parking Management, Drive-through Purchasing, and Toll Collection.
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the In-Vehicle Payments Market report based on Product, Type, Application and region:

In-Vehicle Payments Market, By Product:

• Car
• Vans

In-Vehicle Payments Market, By Type:

• NFC based
• APP based
• QR code based
• Credit Card based

In-Vehicle Payments Market, By Application:

• Parking Management
• Drive-through Purchasing
• Toll Collection

In-Vehicle Payments Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the In-Vehicle Payments Market include Mastercard Inc., Amazon, Royal Dutch Shell, Visa, IPS Group, CarPay-Diem, Mercedez Benz, Volkswagen Payments SA, Bosch, and Daimler.

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

• In January 2023, Car IQ Inc., the pioneering automobile payment network, declared that it will collaborate with BlackBerry Limited to showcase a novel in-dash vehicle wallet at the 2023 Consumer Electronics Show (CES). This wallet links automobiles to retailers and facilitates payments from the vehicle's dashboard. 
• In September 2023, Mercedes-Benz and Mastercard collaborated to launch integrated in-vehicle payments at the point of sale. In more than 3,600 service stations across Germany, customers will be able to make easy and secure digital payments using their car's fingerprint sensor. Using the fingerprint sensor included into the MBUX infotainment system, the native in-car payment service via Mercedes pay+ will convert the vehicle into a type of payment device that can be used to make payments at service stations.

• Mastercard Inc.*
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Amazon
• Royal Dutch Shell
• Visa
• IPS Group
• CarPay-Diem
• Mercedez Benz
• Volkswagen Payments SA
• Bosch
• Daimler

“*” marked represents similar segmentation in other categories in the respective section.