This means that 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.
Daimler will be the first car 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, which are then 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 the next two years, 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 US$86 billion by 2025.
Mobility trends like electric vehicles, car sharing, autonomous driving and connected cars are increasing the demand for innovative payment methods within the vehicle itself.
Today, when you buy car-related services, many require the motorist to use a separate device to log onto an app or website.
Daimler and Visa’s ambition is to enable users to have a hassle-free payments experience through the car, while also expanding the choice and quality of experiences available to them.
