From spring 2022, Visa technology will allow Mercedes-Benz customers in Europe to pay for goods and services using their fingerprints in the car.
Trends such as increased connectivity, environmental regulations, IoT, wireless solutions and increased customer expectations drive digitalisation investments in the automotive industry. Only a few years ago, the media presented autonomous vehicles as the disruptive phenomenon. Since then, the arrival of fully autonomous vehicles has been postponed. A Deloitte survey from 2020 showed that most consumers in Germany (67%) and Japan (61%) are not willing to pay more than $ 500 for technological options for self-driving vehicles on their cars.
In the next two years alone, the number of connected cars is expected to increase to more than 352 million worldwide, and the total volume of payments in vehicles is expected to reach approximately $ 86 billion by 2025. Mobility trends such as electric cars, shared cars, autonomous driving and connected cars are increasing the demand for innovative payment methods in vehicles. Today, when purchasing car-related services, many require the motorist to use a separate device to log in to an app or website.
Daimler and Visa’s ambition is to enable users to have a hassle-free payment experience via car, while expanding the range and quality of available experiences.
Following a new global technology partnership between Daimler Mobility and Visa, Daimler will offer “native” in-vehicle payments. This means that entering passwords or using mobile devices for payment authentication may soon be a thing of the past, as the vehicle itself will become a biometric payment device, thanks to delegated authentication technology from Visa. From spring 2022, Mercedes-Benz customers in the UK and Germany will be able to make payments using a fingerprint sensor in the car, and other European markets will follow suit. Purchases can then be made directly through the car’s main unit or MBUX. The solution should be available in other markets around the world at a later date.
In-car trading has become an integral part of the luxury customer experience. For example, Daimler Mobility’s global payment platform called Mercedes pay allows customers to purchase goods and services directly in their car, including Mercedes me services, as well as for other usage issues such as refueling and parking.
Mercedes pay is part of Daimler’s mobility and digitization strategy and a business segment of Daimler Mobility. Daimler becomes the first automaker in the world to integrate the Visa Cloud Token Framework into its vehicles. Visa Cloud Token Framework is a cloud-based security technology that provides more flexibility across multiple devices because Visa Cloud Tokens protect and delete sensitive payment information by converting data and storing it securely. They also allow pairing of multiple devices inside and outside the car, which are then integrated directly with the consumer’s bank details. This dramatically improves the overall payment experience, as consumers no longer have to enter long card numbers to make a purchase or switch between devices to authenticate payments.