AutoNavi, a navigation and location-based service provider owned by Alibaba is joining in a partnership with Honda to develop a new service for connected cars.
The companies are planning to develop a service that allows drivers to make reservations using AutoNavi and Alipay for payments. Alipay is a Chinese mobile wallet platform owned by Alibaba.
Back in 2015, the two companies had an initial partnership. They worked on multipurpose car navigation systems but haven't specified if Honda models will be equipped with the same connected service or when it will be available.
This new service gives payment players an entirely new platform for their connected cars.
In-car payments are expected to popularize along with connected cars. The number of connected cars on the road will triple by 2025. With this rise in cars equipped with internet access, a subsequent rise in consumers who seek value-added options (car-based payments, for example). Because of the rise in connected cars, a rise in the need for in-car payment platforms is expected to increase within the coming years.
Firms are starting to form partnerships to take advantage of this opportunity. Honda had partnered with Visa, working with smart parking meter developers and fuel dispenser suppliers to allow drivers to make parking and gas payments from their cars. Several other manufacturers have also partnered with payments companies to create connected car capabilities.
Connected Cars are becoming more popular, and with that popularity, there will likely be more partnerships between automakers, payments providers, and tech companies.