The news: Volvo and Mastercard are trialing the US’ 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.

Sticking power: If the test trial succeeds, E-ZPass has an easy pathway to further expansion with Google, if it could integrate into Google Maps or Waze. Google Maps and Waze have 2 billion and 50 million monthly global users, respectively. 

Our take: Payment-enabled cars will have to focus on value and ease to break into the mainstream. About 59 million divers in use across 20 states already have transponders, per E-ZPass Group. But embedding the tolls in an app like Google Maps could make it easier to manage the accounts, especially if users don’t have to wait to be mailed a transponder. 

If E-ZPass payment technology gets shifted onto Google’s platform, E-ZPass Group no longer has to worry about the cost of 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 multistate 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.  

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