Payment Solutions Automotive Industry Part 1

For this year’s Automobile Symposium Wildau, our colleagues Klaus Schöpflin, Lukas Zühlke and Christina Schöpflin have brought their contribution on the topic of digitalisation and payment solutions in the automobile industry. Their article entitled Payment solutions for digital business models in the automobile industry has also been published in the AKWI-Journal for applications and concepts in business informatics.

In the next weeks we shall gradually publish the article on our website as well.

PAYMENT SOLUTIONS FOR DIGITAL BUSINESS MODELS IN THE AUTOMOBILE INDUSTRY – OVERVIEW

BY KLAUS SCHÖPFLIN, LUKAS ZÜHLKE, CHRISTINA SCHÖPFLIN

In an interconnected world with extensive, innovative digital services throughout all industry sectors – especially in the sector of interconnected mobility – the question of appropriate “payment solutions” keeps gaining on significance.

Exemplary applications are:

Figure 1: Typical applications of payment solutions concerning the topic “mobility”

Suitable payment solutions have to be modern, highly scalable and secure as well as need to connect all required Customer Touch Points (Car, Online, Mobile, Vending Machine, Shop). Therefore, in the following, we will talk about multi-channel compatible payment solutions.

From a payment expert’s perspective, scalable and user-friendly payment solutions are a “missing link” in the usability of digital mobility services, that could be used for the realization of

  • ID-Management
  • Personalisation
  • Loyalty and Advertising

instead of proprietary solutions.

The regulatory and market specific barriers for the success of proprietary payment solutions are quite high. On the market, successful payment solutions have always arisen from a combination of user mobilization, simple use and concrete additional values for the purchasing process. Furthermore, as of 2018, new EU-guidelines strengthen the requirements concerning the security of personal data and the accountability for unauthorised transfer of this type of data.

A promising approach for coping with initial difficulties regarding the rollout of payment solutions for digital offerings and business models can be a cross manufacturer approach. This enables automobile manufacturers to focus on the individual configuration of the important Customer Front Ends (Online, Mobil, Auto, Shop). The actual payment solution – including the connection to these Front Ends and all functionalities – fades into the background, as a scalable “solution for everyone”.

Even though the effort for the design and implementation of such a solution is higher, there are significant advantages regarding economies of scale as well as managing regulatory requirements. Particularly when developing overall mobility solutions, such an approach offers strategic advantages.

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