The connected economy started by transforming what’s happening and is turning all kinds of tools into mobile commerce endpoints.
At the heart of it all is the technology to support this transformation, as well as partnerships between FIs, vendors and OEMs to disrupt everything from paying at the pump to parking.
US chip designer Qualcomm said on Thursday that its automotive business “pipeline” has grown to $30 billion, up more than $10 billion since third-quarter results were announced in late July, as reported by Reuters. A solid chip pipeline shows that there is demand for manufacturers to build the vehicles of the future as soon as possible.
For Qualcomm, demand is in part dependent on the Snapdragon Digital Chassis product used in the company’s manufacturing supply chain – by equipment manufacturers and suppliers – to improve the connectivity of vehicles. This connectivity enables everything from the infotainment system offered to passengers while they are in the vehicles, to autonomous driving and automatic parking.
Partnerships between chip manufacturers and automakers abound. In Qualcomm’s case, it is expanding its existing partnership with Mercedes Benz, and Mercedes Benz will use the Snapdragon Cockpit for its in-car infotainment system from next year.
Partnerships also go beyond equipment and technology providers. The way to shape the connected economy on wheels has all kinds of stakeholders.
JPMorgan has entered into an agreement with German automaker Volkswagen to buy almost 75% of its financial services business, highlighting the appeal (and we think the necessity) of in-car payment technology.
Also Read: JPMorgan Acquires 75% of Volkswagen’s Payments Unit
Cars Become Devices
Max Neukirchen, CEO of JPMorgan Merchant Services, told Karen Webster that the car “has become a device” that connects us to a range of activities, including payments. And we go beyond the fragmentation of apps with separate functions – paying tolls, paying parking meters, etc.
As with the VW deal, he told Webster that advanced technology will strengthen OEMs’ direct connection with their end-users, but does not have to do the heavy tech lifting in enabling the payments and trading aspects on their own.
Read More: JP Morgan’s Max Neukirchen Envisions a Traveling ‘Enjoyable’ Connected Economy Beyond Paying Gas and Highway Tolls
Other partnerships that use technology to turn vehicles into point-of-sale (POS) terminals are also seeing cuts. In July, Sunoco said it would connect with Car IQ, a fleet payment solutions platform that will allow secure fuel payments without a physical credit card. The initiative is implemented at approximately 5,000 Sunoco locations across the US Mechanically, drivers using Car IQ Pay at Sunoco stations simply need to enter the pump number, refuel, and hit the road.
Kevin Mull, director of mobility solutions at Bosch, said in a recent conversation with Karen Webster, CEO of PYMNTS, that as the connected economy evolves, open innovation and open collaboration will secure and accelerate the future of mobility. In this framework, the lines between original equipment manufacturers and suppliers are blurring.
We’re not that far from a future where the parking experience itself is automated, connected and completely contactless. Imagine the perfection when a driver arrives at a parking facility, enters a designated landing area, gets out of the vehicle, and taps the “park” button on a smartphone app. The autonomously driving car moves away as the consumer moves away and finds its own parking spot. (In this case, Uber may be tempted to eliminate some middlemen, especially when it comes to getting to the airport.)
Also Read: Large Fleets, Open Innovation and Payments Will Drive the Future of Mobility
As Webster points out in a recent column, there is cross-pollination in the works that will push us to (literally) drive these mobile endpoints and interconnect commerce in the meantime. It has a positive ripple effect with deep reach. PYMNTS data showed that a 10% increase in the use of digital gadgets in the transport and mobility use cases stimulates activities in other use cases such as streaming and playing games and even ordering groceries.
We are always looking for opportunities to partner with innovators and disruptors.