User:Mj kim/Connected Car Commerce

Definition:

The terminology of connected car commerce comes from a combination of Connected car and Commerce word. It means vehicle becomes the platform where it enables the payment to order a service or product. It is called as connected car payments, in-vehicle payment, or in-car payment in other words.

Based on vehicle location and payment information, the vehicle can link payment and proceed the transaction without swiping or tagging a credit card to terminals.

A driver can enjoy vehicle-related O2O services by utilizing the wireless device. The service can be ordering fuel, drive-thru, pick up, parking and other O2O services through smartphone or vehicle infotainments.

Related area:

The biggest value-added activity for Connected Car Commerce is to enable the user to proceed the automatic payment without getting off his/her vehicle.

In the case of fuelling service, a network which links the vehicle to the gas station system acknowledges the user car as well as order details. Using the solution, it is unnecessary for the user to hand over the credit card to the staff nor getting out of the card to pay for the fuel.

It will significantly reduce the labor costs and increase the efficiency of the gas station which operates non-self-system in Asia Pacific regions. In North America, EU case, the solution will reduce the steps and time fuel the vehicle which increase the convince.

Moreover, the solution syncs with the existing membership and mileage programme through the connected car commerce platform which enables the user to use it without extra verification process.

In the case of pick-up service, it shares the vehicle location, order and payment details with the service providers so that the service providers can deliver the products and services when the vehicle arrives at the destination. Therefore, drivers don’t have to act additional activities including paying and getting off the cars to pick up the products or services.

In the case of parking service, the convenience and efficiency will rise because the solution will enable the vehicles to notify the available parking space and proceed the transaction of parking fees. Compare with the existing bill payment kiosks, the solution cuts off processes of the driver to stop by the bill payment kiosks or parking exists for paying the bills. When exiting the parking lot, it automatically links to the vehicle and pays for the amount that the vehicle was parked in the parking lot. Moreover, it permits the connected car commerce users to share their parking space with other users and get credits for the hours of parking. It cultivates a sharing-economy by allowing parking owners to share private parking spaces.

In the case of electronic toll collection and congestion charges, the implementation of electronic toll collection system at low costs is possible. Moreover, charging the vehicle considering various factors in real time is also possible.

Various services will be provided through connected car platform, including car maintenance, car wash, valet parking, designated driver, vehicle sharing, and carpooling.

Market forecast

• According to BI Intelligence, it is expected that 94 million connected cars will be shipped in 2021. Of those cars shipped in that year, 82% cars to be connected. The research represents that the compound annual growth rate would rise from 21% (2016) to 35% in 2021.

• Automakers have clearly seen a growing trend and a significant business opportunity in the connected car market. Business Insider forecasts that 381 million connected cars will on the road by 2020. Moreover, it also expects that connected cars will generate USD 8.1 trillion between 2015 and 2020.

• In North America, the data usage from connected car services will reach almost 3,000 petabytes, which is equivalent to the storage size of more than 90 million standard smartphones, by 2020.

• According to Juniper, connected car services are expected to generate more than USD 18 billion by 2017. In 2020, it will generate more than USD 49 billion worldwide. It is more than 1/3 (39%) of that will come from North America. Moreover, it is expected that consumer will spend more than USD 100 billion on connected car commerce platform.

• By 2022, it is expected that more than 35 million non-commercial vehicles will have the connectivity tools to communicate with other vehicles on the road. By the end of 2017, fewer than 150,000 cars will have that capability.

Market status & trends

• Visa Inc., Pizza Hut, andAccenture announced that they are working together to develop a proof-of-concept connected car to test mobile and online purchases on the go. The connected car is expected to feature Visa Checkout, Visa’s online payment service, cellular connectivity, Bluetooth Low Energy (BLE), as well as Beacon technology deployed at Pizza Hut restaurants to alert staff when the customer has arrived and is ready to pick up the order. The integration of these technologies is being managed by Accenture. And Visa will demonstrate connected car commerce at Mobile World Congress 2017 in Barcelona, Spain.

• Honda conducted the first proof-of-concept demonstration of in-vehicle payments with infrastructure parking and fueling partners at 2017 CES in Las Vegas as part of its ongoing partnership with Visa Inc. The demonstrations are done with fuel pumps from Gilbarco Veeder-Root and smart parking meters from IPS Group Inc.

• Jaguar and Shell announced the launch of world’s first in-car payment system in Feb 2017. New Shell app is part of a suite of new model year updates for Jaguar XE, XF, and F-Pace. Drivers can use PayPal or Apple Pay via their car’s touchscreen to pay for fuel at Shell service stations. Company car users can log journeys and receipts via the car’s touchscreen. Shell app is one of the several updates to Jaguar’s F-PACE, XF, and XE models designed to make customers’ lives simpler. New 18 Model Year line-up also gains the latest Ingenium engines delivering improved efficiency and performance. Shell app will become available across the entire Jaguar and Land Rover ranges. Future cashless tech research from Jaguar Land Rover includes parking and drive-through restaurants.

• OWiN, Korean start-up founded in 2015, created a device that lets drivers make payments without ever having to leave the car. The device, no bigger than a thumb, can be plugged into a cigarette lighter and connected to a payment method like a credit card, membership card or discount card. The device assigns a specific ID number to the car and communicates with nearby stores through a wireless signal to process payments. This means a driver could fill up gas, order coffee or shop for groceries from inside the car and then simply pull up to a window to pick up the order. Acknowledging the technology’s potential, conglomerates have been consecutively announcing partnerships with the fledgling start-up. Telecommunications provider LG U+, credit card company Shinhan Card and oil refiner GS Caltex have already signed partnerships with OWiN and began servicing the device since September 2017.