Cars are at the center of a technology arms race as the source of future financial services growth.
Research giant Gartner predicts the market penetration of connected cars will increase from 39% in 2018 to more than 80% by 2022. This means consumers could rely on in-car infotainment systems as much as their mobile devices, creating a new multi-billion-dollar revenue market.
A report from Juniper Research estimates that 775 million consumer vehicles will be connected via telematics or by in-vehicle apps by 2023, rising from 330 million vehicles in 2018.
Its connected cars report forecasts that automotive OEMs will continue to enable in-vehicle infotainment systems to be accessible to third-party developers.
In turn, this will accelerate expansion of new technologies and services that allow transactions, meaning drivers will more frequently use their cars to search and pay for services and goods, creating a $265 billion connected car e-commerce market by 2023, the research found, accounting for 1% of mobile and online transactions globally.
This requires collaboration between automotive OEMs, network operators and payment solutions providers, with the provision of APIs and development platforms that enable third party-providers to offer payment-capable in-vehicle apps.
Read more here