The connected economy has taken to the road, transforming what happens and transforming all kinds of vehicles into mobile commerce terminals.
At the center of it all is the technology that underpins this transformation – as well as the partnerships between FIs, suppliers and OEMs in an effort to disrupt everything from payment at the pump to parking.
U.S. chipmaker Qualcomm said on Thursday its automotive business “pipeline” had reached $30 billion, up more than $10 billion since announcing its third-quarter results in late July, as reported by Reuters. A robust chip pipeline, it should be noted, indicates that the demand is there for automakers to build – as quickly as possible – the vehicles of the future.
For Qualcomm, the demand relates in part to the company’s Snapdragon Digital Chassis product which is, in turn, used in the production supply chain – by OEMs and suppliers – to improve vehicle connectivity. This connectivity enables everything from infotainment provided to passengers while they are in the vehicles to autonomous driving and automatic parking.
Partnerships between chipmakers and automakers abound. In Qualcomm’s case, it’s extending its existing partnership with Mercedes Benz, where the latter will use the Snapdragon Cockpit for its in-car infotainment system from next year.
The partnerships also extend beyond equipment and technology suppliers. The path to forging the connected economy on wheels involves all kinds of stakeholders.
JPMorgan has reached an agreement with German automaker Volkswagen to buy nearly 75% of its financial services unit, highlighting the appeal (and, we would say, the necessity) of in-vehicle payment technology.
Also Read: JPMorgan Acquires 75% of Volkswagen Payments Unit
Cars become devices
JPMorgan CEO of Merchant Services Max Neukirchen told Karen Webster that the car “became a device”, connecting us to a range of activities, including payments. And we’re moving beyond the fragmentation of apps that have separate functions – to pay tolls, pay parking meters, etc.
As is the case with the deal with VW, he told Webster the advanced technology would cement OEMs’ direct connection to their end users, but without having to do the heavy lifting of technology to enable payments and transactions. commercial aspects by themselves.
Read more: Beyond paying for gas and tolls, JP Morgan’s Max Neukirchen envisions a ‘delicious’ connected economy on wheels
Disruptions are also evident with other partnerships, which are using technology to turn vehicles into point-of-sale (POS) terminals. In July, Sunoco announced that it would link with fleet payment solutions platform Car IQ, which will enable secure fuel payments without a physical credit card. The initiative is deployed at nearly 5,000 Sunoco locations across the United States. In terms of mechanics, drivers using Car IQ Pay at Sunoco stations simply enter the pump number, fill up with fuel and drive away.
As the connected economy evolves, open innovation – and open collaboration – will secure and accelerate the future of mobility, said Kevin Mull, director of mobility solutions at Bosch in a recent conversation with PYMNTS CEO Karen Webster. In this context, the boundaries between equipment manufacturers and suppliers are blurring.
We are not so far from a future where the parking experience itself is automated, connected and completely contactless. Imagine the seamlessness when a driver arrives at a parking lot, parks in a designated drop zone, exits the vehicle, and presses “park” on a smartphone app. The self-driving car starts and finds its own parking spot while the consumer drives away. (Uber, in this case, could apparently be heading for some disintermediation, especially when it comes to getting to the airport.)
Read also: Large fleets, open innovation and payments will determine the future of mobility
As Webster herself noted in a recent column, there is cross-pollination in the work that will drive us to (literally) pilot these mobile endpoints – and connect commerce in the meantime. There is a positive ripple effect that has a deep reach. PYMNTS data showed that a 10% increase in the use of digital tools in transportation and mobility use cases drives activity in other use cases such as streaming and gaming and even ordering groceries.
We are always looking for partnership opportunities with innovators and disruptors.