The global market for in-vehicle payment services was valued at USD 5.36 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 12.1% between 2023 and 2030. These services enable drivers to conveniently pay for essentials such as food, beverages, fuel, groceries, parking, and tolls—all without leaving their vehicle. The expansion of the Internet of Things (IoT) and increasing efforts by car manufacturers to incorporate advanced infotainment systems into their vehicles are major contributors to the anticipated market growth. Additionally, the pandemic-driven shift towards contactless payments and ongoing advancements in smart automotive technologies further support this upward trend.

Key financial service providers such as MasterCard, Visa, and PayPal are collaborating with automobile companies to introduce integrated vehicle-based payment systems. Leading automakers, including Volkswagen AG, Honda Motor Co. Ltd., and Ford Motor Co., have already developed proprietary in-vehicle payment platforms. Although the COVID-19 pandemic disrupted global supply chains and temporarily halted manufacturing activities due to government-imposed lockdowns, the increased demand for contactless payment methods—encouraged by social distancing guidelines—has helped boost market momentum and is expected to continue doing so throughout the forecast period.

Car manufacturers are also prioritizing the development of built-in technologies, including voice control systems, that allow drivers to shop hands-free while driving, without violating traffic safety regulations. However, it's important to note that voice-activated features can still cause distraction. Research from the University of Utah has indicated that speech-to-text tools may cause considerable cognitive overload, as interacting with a dashboard system requires more mental effort than conversing with another person. In this context, innovations in autonomous and connected vehicle technologies are poised to play a significant role in advancing the in-vehicle payment services market.

The broader adoption of driver assistance systems is expected to further support market growth. These systems allow users to carry out tasks such as parking and purchasing directly via in-car interfaces, eliminating the need for separate devices or physical cards.

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Regional Insights

In 2022, North America held approximately 39.3% of the global market share, driven largely by its high concentration of connected vehicles. Additionally, major tech firms like Apple Inc. and Google Inc., headquartered in this region, are now leveraging their innovation capabilities to compete in the automotive sector.

The Asia Pacific region is expected to experience the fastest growth, with a forecasted CAGR of 13.4% from 2022 to 2030. Factors such as a growing population, increasing disposable income, and rapid adoption of cutting-edge technologies in payment systems are likely to propel the market in this region.

Leading Market Participants and Strategies

Key players in the market are focusing on innovation, partnerships, acquisitions, and strategic expansion to maintain their competitive edge. For instance, in June 2023, Mercedes-Benz introduced "Mercedes Pay," a payment feature that allows U.S. customers to use their vehicles to locate and pay for off-street parking. This function is integrated into the Mercedes-Benz User Experience (MBUX) infotainment system, enabling automatic booking and payment upon arrival at the selected parking location.

Prominent Companies in the In-Vehicle Payment Services Market:

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