Daimler and Visa allow in-car fingerprint payment

In-car payment is taking on a new dimension with the partnership signed between Daimler and Visa. European Mercedes-Benz drivers will be able to pay for purchases from the main screen of their vehicle with their fingertips, thanks to a new fingerprint scanning device. The initiative highlights the value of linking biometrics to in-car payment systems.

FACTS

• The MBUX main unit in Mercedes vehicles will soon host a new feature to make it easier to validate in-car payments for multimedia options, music, parking or certain system-authorized online orders.

• UK and German drivers of Mercedes-Benz vehicles will be able to simply touch the main MBUX screen to authorize a payment using fingerprint recognition.

• The new feature was developed by Daimler in partnership with payment giant Visa. It will be rolled out from spring 2022.

• While the UK and Germany are initially targeted for the rollout of this new service, the technology will later be available in other European markets.

CHALLENGES

• A new authentication medium for payment: Daimler and Visa emphasize their commitment to transforming the motor vehicle into a new, fully-fledged payment authentication medium. Mercedes-Benz vehicles are presented as biometric payment devices that support Visa's Delegated Authentication Technology on their own.

• Open Visa Technology: The new payment functionality will use the Visa Cloud Token Framework security technology dedicated to connected objects. This is the first time this technology will be embedded in an automotive vehicle.

• Participate in the excitement of a new market: According to two studies by Capgemini and Juniper, the number of connected cars is expected to exceed 352 million worldwide in the next two years. The total volume of in-car payments is expected to reach approximately $86 billion by 2025.

MARKET PERSPECTIVE

• Daimler is working hard to make in-car payments as simple as possible. Last March, the group presented "Fuel & Pay", another simplified payment solution for German drivers, to enable them to pay for their gasoline fill-ups more quickly and easily.

• This new initiative presented today by Daimler and Visa underlines its commitment to democratize this type of service, as it is also open to British drivers.

• Daimler is also opting for an alternative biometric solution, whereas the majority of biometric initiatives related to in-car payment have relied mainly on voice until now.