IN-VEHICLE PAYMENT SERVICES MARKET ANALYSIS

Market Challenges And Opportunities

Global In-Vehicle Payment Services Market Drivers:

Increasing adoption of mobile payments to fuel the market growth

Regular payment infrastructures are currently progressing. There is an infrastructure transformation in the payment industry, which is important for competing efficiently and to address progressing requirements of customers. Many countries are modernizing their infrastructure of payments. As the cost of infrastructure renovations can be high for both the bank and system, banks are finding ways to develop services and products on the infrastructure providing value to end users and accelerating the cash transactions in order to recover investments in infrastructure. Thus, growing adoption of mobile payments is increasing, and it is likely to boost growth of the global in-vehicle payment services market over the forecast period.

Rising technological innovation in automotive to fuel the market pace

Manufacturers are increasing focusing on development of inbuilt systems such as voice-based controls to enable safe shopping on the road for the drivers. For instance, General Motors and MasterCard entered into partnership for the development of a solution for in-vehicle payment. Thus, technological innovations in automotive such as connected and autonomous cars are expected to drive growth of the global in-vehicle payment services market over the forecast period.

Global In-Vehicle Payment Services Market Opportunities:

Advantages of in-vehicle payment services to create several growth opportunities in the global in-vehicle payment services market over the forecast period. The use of in-vehicle payment services can aid in ordering foods and making payments for foods and beverages along with gasoline and groceries for the drivers without them needing to get out of the call. It also helps to make payments for the parking and tolls. Thus, demand for these services is increasing rapidly, which in turn is creating growth opportunities in the global in-vehicle payment services market.

Growing need for hassle free payment systems at toll plazas, gas stations, and parking spaces is expected to bring multiple opportunities in the global in-vehicle payment services market over the forecast period. The adoption of digital payment technology such as debit card, mobile payment, credit cards is growing rapidly all over the world. Moreover, the availability of high speed connectivity of internet at fuel stations, the use of digital payment services is increasing. This in turn is creating growth opportunities in the market.

Global In-Vehicle Payment Services Market Restraints:

Security of payment data as well as driver to hinder market growth

The increasing adoption of in-vehicle payment services and connected cars is driving the concerns regarding data security and data storage. Hackers are capable of locating and tracking the payment information, due to which major financial losses can occur. Thus, security of payment data and drivers is a major factor expected to hinder growth of the global in-vehicle payment services market over the forecast period. However, adoption of cloud storage is likely to resolve the data storage and management issues, which in turn is likely to support the market growth.

High cost of systems to impede growth of the market

The cost embedded systems is comparatively high than integrated systems. This further impacts adoption of in-vehicle payment services in developing regions or regions with lack of infrastructure and low budget. Along with this, the risk of payment data being leaked is also hindering adoption of this system. These factors therefore are expected to hinder growth of the global in-vehicle payment services market over the forecast period.