- Vehicle payment platform Car IQ partnered with Visa to power its in-vehicle merchant payments solution, Car IQ Pay Vehicle Wallet.
- The partnership will enable wallet users to pay for fuel, tools, parking, insurance, service, and repairs without requiring a physical card.
- Analysts expect the connected vehicle market to reach $600 billion by 2030.
Payment platform for vehicles, Car IQ, has partnered with Visa. The San Francisco-based company is working with the payments and credit card giant to power its in-vehicle merchant payments solution, Car IQ Pay Vehicle Wallet. The partnership will enable vehicles to transact directly with Visa’s global merchant and bank network. The Car IQ Pay Vehicle Wallet can then be used to pay for fuel, tools, parking, insurance, service, EV charging, and repairs.
“Our collaboration with Visa allows us to accelerate the adoption of vehicle payments and make them a seamless part of the fleet experience today, and the consumer experience of the future,” Car IQ CEO Sterling Pratz said. “Our vehicle wallet allows banks and merchants to trust payments from vehicles as well as any other IoT device, over the Visa network.”
The addition of vehicle data is a key component of the partnership. This data supports new contextual payment experiences including real-time offers and personalized rewards for drivers, merchants, or even entire fleets. Car IQ’s Know Your Machine technology authenticates a machine’s identity in order to enable vehicles of all types to transact directly with merchants.
A recent study from Ptolemus Consulting Group noted that the connected vehicle payment market could reach $600 billion by 2030. In a statement, Veronica Fernandez, North American Head of Visa Business Solutions, added that the total spend for commercial fleet payments is more than $80 billion. This sum includes cash, checks, ACH, as well as traditional fleet car payments. Fernandez said that the collaboration with Car IQ will help “drive growth of vehicle-based payments that allow users to take control of their fleet business through enhanced and timely data capabilities that allow for real-time business decisions.”
Car IQ is also partnering with automobile OEMs to embed payments within consumer vehicles. The company’s Car IQ Pay in-dash vehicle wallet, for example, connects to merchants on Visa’s network, enabling payments directly from the car’s infotainment system. Pratz noted that while its efforts are focused on vehicles, there’s more to the Car IQ platform than making payments from cars. “Our platform is designed to easily support any IoT device payment, and we are already seeing interest for connected ‘smart’ city applications and believe the connected home will be next,” Pratz said.
More than 25,000 fuel stations in the U.S accept the company’s Car IQ Pay solution. In June, Car IQ announced a partnership with PDI Technologies to process commercial fleet transactions. In March, the company worked with the United States Auto Club (USAC) to sponsor the “The Fab Four” racing competition for female drivers.
Founded in 2017, Car IQ has raised $42 million in funding, according to Crunchbase. In February, the company secured $15 million in an oversubscribed Series B round. Car IQ began the year teaming up with BlackBerry IVY to launch its in-dash vehicle wallet.