Mercedes cars are transforming into payment devices ๐๐; One of the smartest decisions from Revolut ๐; Goldman Sachs is in advanced talks to sell GreenSky ๐ค
FinTech is Eating the World, 25 September
Hey Everyone,
Happy Monday! Hope you managed to recharge over the weekend as today weโre looking at Mercedes Benz whose cars are transforming into payment devices (what itโs all about & why it matters), one of the smartest decisions from Revolut (yet thereโs one big BUT), and Goldman Sachs thatโs in advanced talks to sell GreenSky (this was inevitable). Letโs jump straight into the cool stuff ๐ถ
Mercedes cars are transforming into payment devices ๐๐
The news ๐๏ธ Auto giant Mercedes-Benz has partnered with finance behemoth Mastercard MA 0.00%โ to introduce embedded in-car payments at the point of sale.
Letโs unpack this and see why itโs a pretty big deal.
More on this ๐ Now live with Mastercard debit and credit cards in recent Mercedes-Benz models, the German auto giant has become the world's first carmaker to integrate Mastercard Secure Card on File for Commerce Platforms technology for online payments into its vehicles.ย
Under the partnership, customers can now use a fingerprint sensor in their car to make secure digital payments at more than 3,600 service stations in Germany.
The USP ๐ฅ After refueling, the driver will see the amount of fuel refueled and the invoice amount to their Mastercard debit or credit cards on the in-car MBUX dashboard display.
Payment will be made automatically, and the driver will be able to leave the gas station without having to walk to the checkout area. The invoice is then sent to the customer by e-mail.ย
โ๏ธ THE TAKEAWAY
Looking ahead ๐ This is the first such implementation globally, and MB plans to extend it to other in-car services and European markets. Obviously, this is not 100% new as it builds on previous work with Visa V 0.00%โ for in-car payments using their tokenization technology. Zooming out, this transforms the car into a payment device and enhances convenience through fingerprint-based authentication. But more importantly, it demonstrates the potential for cars to become transaction platforms. And the potential is definitely there - research shows a growing demand for in-car payments, with 60% interested in paying for gas this way.
ICYMI: In-car payments are on the rise ๐๐ณ [+some more bonus reads]