Mercedes-Benz Customers in Europe Will Soon Be Able Pay for Goods & Services in Their Vehicles Using a Secure Fingerprint Scanner
【Summary】Luxury automaker Mercedes-Benz announced a new global partnership with Visa, in which drivers can scan their fingerprint to buy a cup of coffee or pay for gas right from the vehicle’s infotainment screen. The new technology partnership between Daimler Mobility and Visa will offer “native” in-car payments, meaning that the vehicle itself will become a biometric-enabled payments device.
Luxury automaker Mercedes Benz announced a new global partnership with Visa, in which drivers can scan their fingerprint to buy a cup of coffee or pay for gas right from the vehicle's infotainment screen.
The new technology partnership between Daimler Mobility and Visa will offer "native" in-car payments, meaning that the vehicle itself will become a biometrically enabled payments device, using Visa's secure Delegated Authentication technology. It eliminates having to use a cell phone or password to authenticate payments for goods and services.
Purchases can be made directly through the automaker's AI-Powered Mercedes-Benz User Experience (MBUX) head unit. Most in-car payments today require the driver to use a separate device to log onto an app or website. Daimler and Visa's goal is to enable users to have a hassle-free, in-car payment experience.
Daimler's use of Visa's Delegated Authentication Service, makes it possible to apply Strong Customer Authentication (SCA) on behalf of the issuer.
Initially, the fingerprint payment feature will be offered to Mercedes Benz customers in Ireland and the UK starting in Spring 2022. Expansion to other European markets, as well as globally, will come at a later stage.
According to Mercedes Benz, in-car commerce is becoming an integral aspect of the luxury customer experience. Daimler Mobility's global payment platform called "Mercedes pay" already allows customers to buy goods and services directly in their car, such as fueling and parking, including Mercedes me services.
"Mercedes pay is our competence centre for in-car payment, through which we offer our customers worldwide digital services seamlessly integrated within the Mercedes-Benz ecosystem,'' said Franz Reiner, Chief Executive Officer, Daimler Mobility. "In partnership with Visa, Daimler aims to offer native in-car payments that meets the requirements of two-factor authentication in a secure and user-friendly way."
Mercedes pay is part of Daimler's mobility and digitalization strategy, which includes software defined vehicles that can be updated via OTA updates.
Mercedes-Benz drivers will soon be able to pay for goods and services in their vehicles using their fingerprint.
With the rollout of the fingerprint authentication feature, Daimler will be the first ever automaker in the world to incorporate the "Visa Cloud Token Framework" into its vehicles. The security technology from Visa is cloud-based and allows more flexibility across devices. Visa's Cloud Tokens protect and remove sensitive payment information by converting data and then storing it securely in the cloud.
Visa's Cloud Token Framework enables multiple device pairing both in and outside of the vehicle, which is integrated with a consumer's bank credentials. It's used to initiate a two-factor authentication. The technology makes the payment process much easier, as consumers no longer need to enter their card numbers to make a purchase or switch between devices such as a smartphone to authenticate payments.
In the next two years alone, the number of connected cars on the road is expected to increase to more than 352 million worldwide, according to a 2020 study by French consulting firm Capgemini Invent. The total volume of in-car payments is set to reach approximately $86 billion by 2025, according to the report.
The rollout of this technology is expected to be further boosted by electric and connected vehicles, car sharing services, autonomous driving and vehicle-to-infrastructure (V2X) communications, which is expected to increase demand for easier payment options for drivers or passengers.
Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.
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