The news: Volvo and Mastercard are trialing the US’s first in-car toll payment pilot program, per a press release from the North Carolina Turnpike Authority. Google will supply payments-enabled in-car infotainment systems for the limited 100 Volvo participants.
Why this matters: Payments providers have long tried to integrate payments tech into car hardware. While efforts to pay for gas and EV charging through connected car technology have failed to take off, toll-specific ventures are an untapped volume opportunity.
- Toll roads comprise 8.2%, or 25,500 lane miles, of US limited-access highways, per the Reason Foundation.
- New York City alone generated $2.4 billion in toll revenues in 2023, per a press release.
Payments providers can cash in on the intractable cost of many US adults’ transportation journeys, especially when payments are streamlined through a connected car.
Our first take: Payment-enabled cars will have to focus on value and ease to break into the mainstream. Many US drivers already use E-ZPasses, which effectively deliver the same results of an in-car payment as a car accessory. These passes are in high circulation, with 59 million in use across 20 states, per E-ZPass Group.
If E-ZPass payment technology gets shifted onto Google’s platform, E-ZPass Group no longer has to worry about the cost of their transponders and can receive payments automatically for those who don’t have a transponder, instead of waiting for a billing period. If Google becomes a permanent partner for toll payments, the tech mammoth stands to reap the windfall of multi-state toll volumes from certain commuters likely loyal to toll routes. It could also make other services like Google Maps stickier with an exclusive toll-paying interface.
This is our immediate perspective. We’re actively developing this story throughout the day with more research and data from the EMARKETER database. Our in-depth analysis will be included in our client-only Briefings. Non-clients can click here to get a demo of our full platform and coverage.
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