HomeTechnologyGadgetsDemand for Chips Surge as Cars Become Ultimate Mobile Payments Device

Demand for Chips Surge as Cars Become Ultimate Mobile Payments Device

The connected economy is on the way, transforming what happens and turning vehicles of all kinds into mobile commerce endpoints.

Central to all of this is the technology to support that transformation – as well as the partnerships between FIs, carriers and OEMs to disrupt everything from paying at the pump to parking.

US chip designer Qualcomm said on Thursday that the auto industry “pipeline” has risen to $30 billion, up more than $10 billion since its third-quarter results were announced in late July. reported by Reuters. A robust chip pipeline, we note, indicates that there is demand for manufacturers to build the vehicles of the future – as quickly as possible.

For Qualcomm, the demand is partially tied to the company’s Snapdragon Digital Chassis product, which is in turn used in the manufacturing supply chain — by equipment manufacturers and suppliers — to improve vehicle connectivity. That connectivity enables everything from infotainment delivered to passengers while they are in the vehicles to autonomous driving and automatic parking.

Partnerships between the chipmakers and the automakers abound. In Qualcomm’s case, it is expanding its existing partnership with Mercedes Benz, where the latter will use the Snapdragon Cockpit for its in-car infotainment system early next year.

The partnerships also go beyond equipment and technology suppliers. The road to forging the connected economy on wheels has many stakeholders.

JPMorgan struck a deal with German automaker Volkswagen to buy nearly 75% of its financial services unit – highlighting the appeal of (and we would say the necessity) in-car payment technology.

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Also read: JPMorgan to acquire 75% of Volkswagen’s Payments Unit

Cars become devices

JPMorgan CEO of Merchant Services Max Neukirchen Karen Webster told us that the car will “become a device,” connecting us to a range of activities, including payments. And we’re going beyond the fragmentation of apps that have separate functions — paying tolls, paying parking meters, etc.

As relevant to the VW deal, he told Webster that the advanced technology will strengthen OEMs’ direct connection to their end users, but without having to do the heavy technical work to enable the payments and commercial aspects alone. .

read more: In addition to paying for gas and tolls, JP Morgan’s Max Neukirchen proposes a ‘delightful’ connected economy on wheels

The disruptions are also evident with other partnerships, which are using technology to convert vehicles into point of sale (POS) terminals. In July, Sunoco said: it would be linked to the fleet payment solutions platform Car IQ, which enables secure fuel payments without a physical credit card. The initiative is being rolled out at nearly 5,000 Sunoco locations in the US. Mechanically, drivers using Car IQ Pay at Sunoco stations only need to enter the pump number, refill their fuel and drive off.

As the connected economy evolves, open innovation and open collaboration will ensure and accelerate the future of mobility, said Kevin Mull, director of mobility solutions at Bosch in a recent conversation with Karen Webster, CEO of PYMNTS. Against this background, the dividing lines between original equipment manufacturers and suppliers are disappearing.

We are not that far from a future where the parking experience itself is automated, connected and completely contactless. Just imagine how seamlessly a driver arrives at a parking facility, enters a designated drop zone, exits the vehicle and taps “park” on a smartphone app. The autonomously driving car drives off and finds its own parking space while the consumer walks away. (Uber may seem to be heading for a disintermediation in this case, especially when it comes to getting to the airport.)

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Read also: Large fleets, open innovation and payments will drive the future of mobility

As Webster himself noted in a recent column, there is cross-fertilization in the making that will lead us to power (literally) these mobile endpoints – and connect commerce in the meantime. There is a positive ripple effect that has a wide range. PYMNTS data has shown that a 10% increase in the use of digital tools in transportation and mobility applications drives activities in other use cases, such as streaming and gaming and even grocery ordering.

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers found that while two-thirds of consumers have used FinTechs for some aspect of banking services, only 9.3% call them their primary bank.

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We are always looking for opportunities to collaborate with innovators and disruptors.

Learn more

https://www.pymnts.com/digital-payments/2022/payments-platform-facepay-debuts-guaranteed-text-to-pay-for-auto-repair-shops/partial/

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