Leading satellite radio provider SiriusXM is teaming up with Visa to develop the SiriusXM e-wallet for vehicle manufacturers who offer SiriusXM’s connected vehicle services.
The wallet the two companies develop together can be integrated into a car dashboard and motorists can use the wallet to place orders and to pay for coffee, find petrol pumps and prepay for fuel, locate and pay for parking, to buy movie tickets, pay tolls, and more in-vehicle services.
The wallet will be showcased to automakers this year, and it will be powered by APIs which the two companies will develop together and it will include the Visa Token Service for extra security.
Connected car commerce will provide a lot of scope for companies dealing with the payments segment. In the United States alone, there are 135 million commuters on a daily basis and the average communter spends between 15 minutes to over an hour travelling to and from work. About 83 percent of them would engage in commerce during their commute and firms can use this avenue to boost volume.
About 66 percent of commuters who ordered food ahead of time said that they would do it more often if in-vehicle commerce was available to them. This reveals that there is great opportunity for payment firms to come up with solutions for connected car payments and explore a new stream of revenue. Business Insider has reported that it expects the volume from connected car commerce to increase from just over USD 1 billion in 2017 to USD 16.4 billion in 2023.
In order to leverage this opportunity, companies need to make their solutions scalable so that they can reach the widest possible audience. Many companies have started working on connected car payments for multiple uses, like payments for fuel and mobile order-ahead at quick-service restaurants (QSRs).
Honda has announced that it has finalized a collaboration with the leading chain of petrol pumps, Phillips 66 so that drivers can use their infotainment screen to pay for their fuel. Mobile payments provider P97 teamed up with General Motors and Shell to set up a service that will make it possible for motorists to find petrol pumps and pay for fuel from inside their cars.
Many of these solutions are restricted to just one make or model of vehicles or one chain of gas stations. This is where the partnership between SiriusXM and Visa would be different as the solution they develop can reach many more users as the use of Sirius service is not limited to just one vehicle manufacturer. Currently, SiriusXM has more than 32 million subscribers.
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