Automotive Ecosystem Series — Chapter 6: Vision on Mobility Payments’ Future
Sharing Intellias vision on mobility payments and in-car commerce of the future is a logical roundup of all the technological innovations we’ve explored before. Discussing money and future mobility of payments is as good as any summary for everything that has already been said.
If you’ve missed our previous articles, you should get a full perspective and start reading from the beginning to:
- understand what digital transformation is,
- choose OEMs to improve your growth,
- get to know key features for success,
- investigate tactics to better your strategy,
- and go into the mobility platform specifics.
To start, let’s learn a fun fact about future car payments. Today, 66% of drivers who use smartphones to place orders would spend even more if they could use an in-car payment system. Through connected car secure commerce, OEMs already have an excellent avenue for generating additional income and even more so as the technology develops over the next decade. I encourage you to read a full article on this topic.
If you read through the article, you’ll better understand the drivers’ buying preferences and that in the US alone, for example, drivers had spent over $100 bn in 2018. Taking advantage of this, especially with the present and future payment technology developments, is key to any sizeable automotive enterprise’s success.
M2M economy of the future
Your car is becoming entangled by in-vehicle commerce as an extension to your credit card, just like the Apple Watch. There are even more robust economy engines to come. Welcome to the machine-to-machine (M2M) economy!
In the new realm, cars are autonomous units with their bank accounts or whatever is following. OEMs or mobility service providers can tap into these units and become major clients of a future mobility payment system. With the advent of IoT, inter-connectivity of cars, and minimized cost of managing micropayments, networked smart vehicles can operate in their mobility ecosystem. And here’s how it works:
Cars are literally talking to each other, passing critical info and payments, meaning that we are facing connected car commerce in a cooperative driving environment. All of these actions are done independently of the driver. Such a concept may sound strange for many to get their heads around. But over the years, I’ve figured that social and human reservations are the main barrier to technology development and proliferation. With the benefits of safer, faster, and more efficient driving that can even share parking space information between cars, I believe in the positive future of cooperative mobility.
Why is the M2M economy important? When smart cars are interconnected and become economic agents of connected commerce — vehicles can buy and sell on behalf of their owners becoming merchants. But how easy is it to “outsource your buying decision” to robots and be faced with a connected experience? Well, currently it’s not very appealing to your average Joe as the psychological implications of letting a machine take ownership of finances are quite intense.
On the other hand, we have whole economies that have been reliant on robots making economic decisions for years. Take High-Frequency Trading as an example where on a virtual platform, complex autonomous algorithms generate billions in revenue and an equal amount of losses. Therefore, I firmly believe that any psychological implications of letting your car having its bank account will be gone pretty soon.
With the development of FinTech in the automotive industry, we are entering a new economy model of cooperative mobility where machines are buying from other machines or humans. And you never know what else the future might hold :)
To Be Continued
In our next and final article of the series, we will sum up all of our findings of this article series on transforming the future of your OEM. It’s a privilege to help you decide on the key steps you’ll need to take to ensure that your business flourishes in the future and stays relevant throughout your digital transformation.
