Vehicle payment startup Car IQ and digital payments giant Visa have teamed up to enable Car IQ’s in-dash vehicle wallet for purchases of fuel, tolls, parking, insurance, service, and repairs from merchants on the Visa network.
The deal allows vehicles to transact directly with Visa’s global network of merchants and banks. This technology enables purchases to be made directly through a vehicle’s infotainment system, meaning customers no longer need to pull out their own wallets to pay for gas, parking, and more.
Car IQ has created a fully-automated vehicle payment system using its patented machine identity verification process, known as Know Your Machine. The system tracks spending, cross-references, and authenticates purchases. Additionally, it provides actionable insights into the health and activity of every vehicle in your fleet.
The Future of Connected Vehicle Payments
Through this collaboration, the companies will target a significant share of the connected vehicle payment market, projected to reach $600 billion by 2030, according to Ptolemus Consulting Group.
Car IQ is currently accepted at over 25,000 fueling locations nationwide at retailers including Shell, Sunoco, Circle K, Kum & Go, and Sinclair. It has recently partnered with EverWash, the nation’s leading car wash membership platform, providing access to over 800 locations across the country.
The announcement comes less than six months after Car IQ secured an additional $15 million in its Series B funding round, which Visa participated in, alongside prominent investors like State Farm Ventures, Bridgestone, Navistar, and Circle K. This funding round surpassed its target, bringing the total funding to $42 million to date.
In February, Car IQ announced that the funds would be allocated to accelerate the expansion of its payment platform and introduce new commerce categories, such as electric vehicle charging, repairs, registration, and insurance.
Beyond Vehicles: A Broader Vision
“Our vehicle wallet allows banks and merchants to trust payments from vehicles, as well as any other IoT device, over the Visa network,” said Car IQ CEO Sterling Pratz. He emphasized his larger vision for the company, stating that while their initial wallet initiative focuses on vehicles, the platform is designed to easily support any IoT device payment.
Pratz expressed optimism for future applications, noting, “We are already seeing interest for connected ‘smart’ city applications and anticipate that the connected home will be next. In the future, I believe everyone will have the choice of adding their cars, home appliances, and more directly to their bank accounts for transactions.”
