#637

In-Vehicle Commerce

CONTABLE OF CONTENTS
Introduction

Connected &Mobility Services

For the majority of drivers, commercial transactions have traditionally formed a key part of the ownershipexperience. Today, these transactions serve a variety of purposes outside the vehicle – from gas and petrol
payments to service and maintenance costs. In the future, connectivity services will continue to develop alongside
new automotive technologies and systems – allowing for greater commerce opportunities inside the vehicle.

Executive SummaryMotivations

OEMs, suppliers, and even tech giants like Amazon have only recently begun to leverage infotainment systems tocarry out in-vehicle payments. While some key players in the EV ecosystem have provided similar solutions, manyare investigating the commerce opportunities of autonomous vehicles. The increased adoption of automateddriving systems has already raised the potential for new service types, including gaming and video streaming, andnew revenue streams as more OEMs conceptualize the vehicle as a third living space.

Success Factors
TechnologyEcosystem

The In-Vehicle Commerce report presents the most important use cases from the ecosystem for in-vehiclecommerce and highlights the role tech giants are expected play within it. Also highlighted are the OEMs andsuppliers offering commerce solutions in their vehicles today. A five-year forecast further understands how theecosystem for in-vehicle transactions is expected to grow and identifies the factors that could influence this growth.

Market Outlook
Recommendations

RELATED SBD REPORTS
6 3 6 – T h e S oftware-Defined V eh icle
SBD Automotive’s Car IT Team has created TheSoftware-Defined Vehicle report to support OEMsand suppliers.
It identifies the Software-Defined Vehicle andoutlines how OEMs can utilize platforms and services
to build cars that can be continually updated, andprogressively maintained, by cross-platform
software.

COVERAGE

FREQUENCY

PUBLICATION FORMAT

PAGES

1NACHINAEUROPEANNUALLYQUARTERLY

ONE-OFFPD F

POWERPOINT

EXCEL

ONLINE

55+

#637/In-Vehicle Commerce

Key questions answered> What new use cases areemerging for in vehiclecommerce?

> What role are Tech Giants
like Amazon likely toplay?

This research supports

Do I have access?

> How is the eco-system for invehicle commerce evolving?
PRODUCT PLANNERS

C- S UITEM A R K E T I NG

UX> How fast will in-vehiclecommerce grow?

Portal access

Request a quote for
In-Vehicle Commerce
One-Off Report for 2022

637 – In-vehicle Commerce
GlobalContents
In-Vehicle Commerce
Introduction ≫4

Executive Summary ≫6

Motivations ≫12

Success Factors ≫19

Technology ≫28

Ecosystem ≫39

Market Outlook ≫49

Recommendations ≫53

Go Deeper ≫56

Introduction

Introduction

Introduction
The vehicle has traditionally been at the center of various commercial
transactions, such as gas and parking payments. But only recently have OEMsand other players (e.g., Amazon) attempted to facilitate in-car payments via IVI
systems. As vehicles become more autonomous, other in-vehicle commerce
opportunities are emerging, such as gaming and video streaming. This reportanalyses the market opportunity and trends for in-vehicle commerce.
The report outlines strategies for commercializing third-party content and services
and is broken down into six main sections, shown to the right. These examine key
motivators for stakeholders, six success factors, a deeper dive into the technology
stack, consideration of some leading use cases, a forecast roadmap and finallysummary recommendations.
The broad scope of in-vehicle commerce covers all financial transactions carriedout within or via the vehicle, for example via the IVI or via the OEM companion
app. The scope of this report excludes smartphone-based transactions andFaaS/SaaS transactions.
SBD would like to extend our sincere thanks to the five companies that agreed totake part in interviews which helped to inform and guide this report:

SectionContentMotivations

Key motivators for each of the leading in-vehicle commerce
stakeholder groups.

Success Factors

Identification of six success factors which recur throughout
the report.

TechnologyAnalysis of different parts of the technology stack required
to enable in-vehicle commerce.

Ecosystem

Eight use cases with example implementations, obstacles,
high-level ecosystem diagram and minimum requirements
for success.

Market Outlook

Roadmap and five-year forecast for adoption and revenue
opportunity.

Recommendations

Stakeholder-specific recommendations on how to succeed
at in-vehicle commerce.

66

Example slides
from the reportExecutive Summary

What are the critical factors for a successful implementation?

High visibility offerings
increase userawareness and build
loyalty to promote use

Predictive suggestions
rely on a deep
understanding of theuser to drive
transactions

8

Effective interfaces streamline
user touchpoints to provide thebest possible user experience8Motivations

Motivations: Automotive-linked tech giants
Automotive tech giants are defined as those that have a mobility andautomotive focus, are broad in their products and services and are very big,
globally or within the China market.

Tesla

Offering an in-vehicle commerce facility, particularly as part of a widerinfotainment offering, can provide tangible benefits to automotive-linked
tech giants, including:•Introducing new customers: automatic buy-in to the tech giant’s
ecosystem for new customers purchasing a relevant vehicle.

•Increasing reach and intelligence: increased touchpoints across existingcustomer-base leads to deeper knowledge of customer behaviour andinteractions.

•More attractive offering for OEMs: in-vehicle commerce functionality canadd value to a wider embedded offering, potentially making it a more
attractive option for OEMs.

BaiduAmazonMicrosoftTencent

Alibaba

HuaweiAlphabet

Apple

9

Motivated by Scale9

Success Factors

Success factors: Effective interfaces

Effective interfaces are critical for a pleasing,
low distraction and frictionless user experience.
Historically, poor implementations havecontributed to low penetration and eventual
failure of in-vehicle payment solutions.
The interface must be optimized for the simplest possible interactions at every step including:• Installation (if required)• Initial user authentication and payment setup• Merchant payment authorization (including allowing passive payments)• Ongoing transactions

10In-vehicle payments will be conducted primarily via voice, on-screen interactions or a combination. The method ofinteraction should be appropriate for the task in hand, for example choosing from a restaurant menu is likely to require avisual element, whereas ordering a daily coffee should be possible using voice alone.
10

Technology

Data flow of in-car commerce service
The flow chart below describes the high-level process for end customers to use IVC, covering the operation and actions of the complete cycle todemonstrate the data flow.

Merchant

IVC

Payment provider

HMI
3rd party payment

Order Request

CP/SPCheckproviderVehicleinformation/accountinformation

TSP

Authentication?

HMI

Requirement checkYes

Use cases

Fuel price

Location

Parking info

Numberplate

ServicenoticeContent
preference

Data
Exchange

Customized
content

Shopping
preference

Customized
products…

…

Place check
Service or content
information

Authentication requirement

SpecificMerchant

HMINo

HMI

Authentication

Fuel type

Merchants

Payment succeed/fail information
Smartphone/ biometricmethodDefinition:
IVC-related operation end
IVC non-related operation end
Data FlowAction1111

Ecosystem

Use case 7: Repair & maintenance
Description

Ecosystem diagram
Authentication

Paymentprovider

IVCOEM

Repair and maintenance requirements are most likely to be linked torecommended service interval or triggered by a diagnostics or prognostics
system detecting a potential issue with the vehicle. When the system istriggered, the customer will be given the option to book a fixed priceservice or visit a service center for diagnostics/repair of a detected issue.
The fixed price service payment can be completed at the time of booking,while other payments may be completed later via in-vehicle payments or inperson at the service center. Alternatively, a third-party service center may
be used.
Example implementations
Tesla supports service booking in the companion app and payment
can be made via Tesla account using the app on completion of theservice.

Servicecenter
A 3rd party service center may optionallybe used instead of the OEM

Minimum requirements for success

Many OEMs in the China market offer in-vehicle purchase ofmaintenance packages, including BMW, Tesla

Deep
integration
5Obstacles•

This use case works well for known-value payments but is less effectivefor unknown outcomes, which may still be more effectively handled byconventional payment methods.

High visibility
offering

3In-vehicle
authentication

2Conclusion

1

This is expected to be an infrequent transaction; therefore, it may be best
triggered by an event rather than permanently available in the IVI.

124

Predictive
suggestions

This solution requires deep integration fordiagnostics. Effective interfaces are as ever, critical.
All other factors score 4 due to being less importantas this is likely to be an infrequent transaction.

Frictionlesstransactions

Effectiveinterfaces
12Request the priceContact Us

Contact SBD Automotive

Do you have any questions?
If you have any questions or feedback about thisresearch report or SBD Automotive’s consulting services,
you can email us at info@sbdautomotive.com or discusswith your local account manager below.

info@sbdautomotive.com

Book a meeting

USAGarren Carr
North America
garrencarr@sbdautomotive.com+1 734 619 7969

14UK

Germany

Luigi Bisbiglia
UK, South & West Europe
luigibisbiglia@sbdautomotive.com+44 1908 305102

Andrea Sroczynski
Germany, North & East Europe
andreasroczynski@sbdautomotive.com+49 211 9753153-1

India

China

Japan

SBD China Sales TeamChina
salesChina@sbdautomotive.com+86 18516653761

SBD Japan Sales TeamJapan, South Korea & Australia
postbox@sbdautomotive.com+81 52 253 6201
14