The carriage – that steel horse which is the main means of getting where we need to go – is quickly becoming a vector of commerce.

And as this happens, Original Equipment Manufacturers (OEMs), or automakers in this case, have the opportunity to deepen their relationships with the consumers who buy their cars and find value in the lineup. Extensive functions available when seated behind the wheel, navigate the dashboard and get things done as you go.

JP Morgan Merchant Services CEO Max Neukirchen told Karen Webster that the car “becomes a device”, connecting us to payments, a wide range of services related to the maintenance of the vehicle itself and even, possibly. , banking services.

Currently, transport-related trade is a bit fragmented. There are apps to get gasoline, apps to (virtually) power parking meters and apps to pay tolls. The connected car experience, for lack of a better term, encounters speed bumps and even potholes. But the journey to an “Uber-like” experience, where payments are integrated, automatic and magically take place behind the scenes, is well underway.

PYMNTS research has shown that connected consumers who have become accustomed to the convenience of interacting with devices in their homes and offices now expect the same level of continuous service in their cars and trucks. Specifically, the average commuter has about 80% more connected devices than their non-commuting counterparts.

Read more: Do you remember the commuters? They always want to be connected while they are driving

And against this backdrop, JP Morgan said earlier this month that it had reached a deal with German automaker Volkswagen (VW) to purchase around 75% of its Volkswagen Payments SA.

See more : JP Morgan acquires 75% of Volkswagen’s Payments business

While financial terms of the deal were not disclosed at the time of the announcement, JP Morgan’s move precedes the automaker’s launch of on-board payment technology, which would allow users to automatically pay for fuel. and tolls.

Neukirchen told Webster that the overriding goal is to bring mobility-friendly payments beyond the boundaries of transport-related transactions – in other words, well beyond gas and tolls.

This is a marked departure from the efforts of automakers and big tech companies to develop their own operating systems to cement relationships with customers. The venture between VW and JP Morgan, he said, will feature cutting-edge technology that will fuel share-to-share use cases across the industry, giving OEMs a more direct connection to their end users, but without having to do the heavy lifting of the technological work to enable the payments and business aspects themselves. The joint venture will bring some standardization to automotive-related commerce, which in turn can be leveraged by other OEMs as they seek to expand their own connected commerce efforts.

Valuing convenience

Consumers appreciate the convenience that cars provide, said Neukirchen, “and now, more and more, the car is becoming a convenient method of payment.”

Sooner or later, he added, we won’t need separate devices or apps to get gasoline – the car will pay the price. Vehicles are also quickly becoming a way to download and consume content (these TVs can help kids stay reasonably complacent on long car journeys). There is no shortage of radio subscriptions.

“All of this is consumed by the car in the car and can be paid for via a connected car,” said Neukirchen, who added that integrating payments into telematics can help streamline and automate business related to the insurance and vehicle maintenance, improving the overall customer experience, across an unlimited number of endpoints (even in B2B, where service centers and their own suppliers can conduct seamless commerce).

There’s another angle to the business, Neukirchen said. The efforts that are crystallizing between VW and JP Morgan position the two companies well for a future of mobility that will be marked by the continued adoption of electric vehicles (EVs). Over the next few years, electric vehicles will represent a third of light vehicles sold in Europe, Asia-Pacific and North America. This means that charging stations will proliferate in cities, parking lots and homes, and along highways. Once that infrastructure is in place, the payments infrastructure must modernize to facilitate payments and ensure consumers can pay as they top up.

Looking to the future, he said, “we want to help automakers and utilities provide their consumers with a pleasant and frictionless experience. “



On: Eighty percent of consumers want to use non-traditional payment options like self-service, but only 35 percent were able to use them for their most recent purchases. Today’s Self-Service Shopping Journey, a PYMNTS and Toshiba Collaboration, analyzes more than 2,500 responses to find out how merchants can address availability and perception issues to meet demand for self-service kiosks.


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