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4 Minutes

The Revolution of Mobility As a Service (MaaS)

Until not so long ago, cars were simply a means of getting from point A to point B. But the industry's biggest innovators are constantly developing its user experience & mobility as a whole. And thanks to this latest connected car solution, Daimler drivers will be able to pay for gas, parking, and numerous goods and services from the convenience of their dashboard - a big step in the right direction of innovative mobility.

So what is this connected car innovation all about and how could mobility have advanced so far?

In-car commerce is still in its early stages, but we can clearly see that it is finally picking up steam and is expected to grow exponentially in the next 5 years as payment giants are partnering with leading car manufacturers to drive innovation in this sector.

north america in vehicle payment services market
North America In-Vehicle Payment Services Market. Source: Grand view research

Security of Daimler's in-car payments

When you hear about linking payments to your car dashboard, you might wonder: how secure is my payment data if someone else gets access to my car?

But your biometric payments authentication is actually required to complete a transaction.
On top of that, Visa's tokenization services play a big role in making this solution extra secure. 

Daimler is the first automaker to use Visa's Cloud Token Framework

A fun fact to mention, Daimler is the first automaker to use Visa's Cloud Token Framework, allowing customers to perform two-factor authentication without having to switch between multiple devices, like your mobile phone enabling this integrated experience.

The Mobility-as-a-Service revolution

Mobility-as-a-service actually goes back a long way, when public transportation providers innovated separately to make commuting more convenient. But today, instead of having to locate and pay for each mode of transportation separately, MaaS platforms allow you to book door-to-door rides in a single app. 

However, the challenge now is: how to create a network of different transport modes and providers under one roof.

Global drivers for Mobility as a Service

There are a number of drivers for the accelerated growth of MaaS. Let us start with perhaps the most pressing driver: sustainability. The 26th Climate Change Conference, held last week, emphasized the importance of taking action to combat climate change and the role mobility and financial solutions play in achieving that.

Aside from the increasing urgency to tackle climate change, today's technologies enable governments, transport providers, and payment platforms to introduce sustainable, user-friendly transport options that are accessible to the public.

One positive change is that the number of electric vehicles in the UK increased by nearly 18% in 2021, while the number of gasoline-powered vehicles decreased by over 30%.
car registrations summary
New Car Registration per fuel type. Source: SMMT

The urgency to act now

That being said, the urgency to reverse the effects of climate change is greater than ever, and sustainability is no longer a “passing trend”, but an important issue that needs to be addressed by all stakeholders.

That's why PaymentGenes is organizing a roundtable discussion with experts from around the world to delve deeper into combining sustainability and business growth, and to address complicated payments issues that stand in the way of Mobility-as-a-Service.

To learn more about this roundtable, sign up now and reserve a spot on November 17 at 4:30pm  Central European Time. 

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