Germany headquartered vehicle maker Daimler has announced that it will offer 'native' in-car payments as a result of a new global technology partnership between Daimler Mobility and Visa.
According to Daimler, entering passwords or relying on mobile devices for payment authentication may soon be a thing of the past as the vehicle itself becomes a biometrically enabled payments device, thanks to Visa’s Delegated Authentication technology.
From spring 2022 onwards, Mercedes-Benz customers in the UK and Germany will be able to make payments using a fingerprint sensor in the car, with other European markets to follow. Purchases can then be made directly through the car’s head unit or MBUX. The solution is anticipated to be available in other markets globally at a later stage.
In-car commerce has become an integral aspect of the luxury customer experience. For example, Daimler Mobility’s global payment platform called Mercedes pay enables customers to buy goods and services directly in their car, including Mercedes me services, as well as for other use cases such as fuelling and parking.
Mercedes pay is a component of Daimler’s mobility and digitalisation strategy and a business segment. According to a press release issued by Daimler Mobility, the OEM will be the first-ever automotive company in the world to incorporate the Visa Cloud Token Framework into its vehicles. Visa’s Cloud Token Framework is a cloud-based security technology that allows more flexibility across multiple devices as Visa Cloud Tokens protect and remove sensitive payment information by converting data and storing it securely. They also enable multiple device pairing in and beyond the car, directly integrated with the consumer’s bank credentials. This significantly improves the overall payment experience as consumers no longer need to enter long card numbers to complete a purchase or switch between devices to authenticate payments. The solution will be used to initiate a two-factor authentication.
In-car Digital Commerce
In the next two years alone, the number of connected cars is estimated to increase to more than 352 million worldwide, and the total volume of in-car payments is set to reach approximately $86 billion by 20253.
Mobility trends like electric vehicles, car sharing, autonomous driving and connected cars increase the demand for innovative payment methods within the vehicle itself.
Antony Cahill, Deputy CEO and Head of European Markets, Visa Europe, said, “We are excited to bring to life a native solution for in-car payments for the first time, together with our partner Daimler Mobility. It is significant that both the successful pilot testing and initial launch activities are taking place in Europe, a world-leading hub for payments and automotive innovation.”
Franz Reiner, Chief Executive Officer, Daimler Mobility, said, “Mercedes pay is our competence centre for in-car payment, through which we offer our customers worldwide digital services seamlessly integrated within the Mercedes-Benz ecosystem. There is nothing more convenient than authorising a payment with your fingerprint. A luxury customer experience of course includes the aspect of safety, and we fulfil that through native in-car payment. We offer our customers security not only when driving, but also when paying.”