Car IQ Inc. and Visa Inc. have teamed up for in-car transactions with merchants. The collaboration will bring Car IQ’s wallet, Car IQ Pay, along with their powerful technology into Visa’s global influencing network to enable vehicles to manage their own payment accounts and transact without the need for a physical card.
Sterling Pratz, CEO of Car IQ, expressed his excitement about accelerating the adoption of vehicle payments in a statement, saying in a Wednesday (July 12) press release: “Our collaboration with Visa allows us to accelerate the adoption of vehicle payments and make them a seamless part of the fleet experience today, and the consumer experience in the future. Our vehicle wallet allows banks and merchants to trust payments from vehicles, as well as any other IoT device, over the Visa network.”
This collaboration is expected to expand the reach of both Visa and Car IQ in the vast connected-vehicle payments market, which Ptolemus, an independent consulting firm, believes will reach a whopping $600 billion by 2030.
Veronica Fernandez, North America head of Visa Commercial Solutions, agreed with the sentiment, saying in a statement: “Cost management, transparency, and a seamless experience are more important than ever for commercial-fleet payments, with total spend reaching over $80 [billion] across cash, checks, [automated clearing house], and traditional fleet card payments. Through this collaboration with Car IQ, we’re excited to drive growth of vehicle-based payments that allow users to take control of their fleet business through enhanced and timely data capabilities that allow for real-time business decisions.”
Car IQ is also working with automotive-equipment manufacturers to enable payments from non-commercial vehicles through the Visa network using the vehicles’ infotainment system. With this, drivers can pay for fuel, tolls, parking, insurance, service, and repairs using the Car IQ wallet.
The Car IQ wallet also brings to the table the added benefit of pulling in-vehicle data into each transaction. This allows merchants to provide contextual-payment experiences such as real-time offers and personalized rewards for fleet operators and drivers.
Car IQ is the latest to tap into the potential of in-vehicle payments. Just last week, BP announced its In-Truck Connect program was expanding to more of the U.K. The program allows fleet managers and drivers to track fuel purchases.
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