How Innovative Fintech is Helping the Automotive Sector

Lester D'Souza, Auto Tech Outlook | Tuesday, January 05, 2021

The fintech sector helps the automotive industry by allowing flexible transactions of payment for the customers.

FREMONT, CA: In the past few years, fintech has become an essential part of every industry because it can make things easier, faster, and cheaper for companies and their customers. According to market research, most of the consumers have two or more fintech services or platforms. Specialists predict that the sector will witness more growth in the future. Therefore, presently the fintech industry is booming.

The specialists are also predicting the fintech will restructure the legacy-dominated financial services and open its doors to new sectors. The next important thing in fintech will be the auto finance industry due to the increasing digitalization of devices. When more devices start connecting and communicating with each other digitally, it will develop immense opportunities to exchange data, and the automotive sector is also involved in this trend. The cars can send and receive data across the internet to improve customer experience.

In-car payments

The in-car payments are one of the most precise methods in which fintech can impact the automotive industry. The popularity of in-car payments is also increasing due to the merge of OEMs solutions with payment solutions. The in-car technologies can be described as offering consumers the chance to purchase from the car's dashboard's convenience.

The in-car payments partners with the payment platform so that the customers can pay for fuel with a smartphone at the gas station. People do not have to get out of the car to pay for filling the tanks.

New models of in-car payment solutions have been developed recently. These solutions revolve around three pillars: IoT integrated with a mobile wallet and personal POS, IoT that interfaces with the merchant devices, IoT platforms, and an integrated mobile wallet.

Car rental and ride-sharing platforms

As the demand for car-sharing increases, the fintech sector has also found immense opportunities in the trend of people avoiding car ownership and choosing car rental or ride-sharing solutions. This new process of the transport-sharing industry has changed conventional car ownership. The fintech organizations are obtaining momentum in the transport-sharing economy. They are helping this sector by allowing digital transaction due to which payment options has become flexible for the customers.

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