Payment Solutions Automotive Industry Part 3

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 PAYMENT – AN “INDIVIDUAL” WORLD

BY KLAUS SCHÖPFLIN, LUKAS ZÜHLKE, CHRISTINA SCHÖPFLIN

“Paying” is an individual world with its own rules and success factors. The most important ones are:

  • User Experience
  • User mobilisation
  • Scaling

New entrants in the payment industry are facing various obstacles and challenges when it comes to the design, implementation and the successful rollout of their own, proprietary payment solutions:

  • Regulation and licensing requirements for providers, processors, payment methods and acceptance solutions are strong market entry barriers (time, knowhow, costs)
  • Nationally varying legal requirements and a variety of proprietary, national payment solutions (e.g. Girocard or Carte Bleue)
  • The few available solutions on the market, that enable data processing for all customer touchpoints (Shop, vending machine, Online, Mobile).

Furthermore, the market is saturated with payment methods. There is only a very small need for entirely new payment methods. But the need for payment solutions that fulfil the mentioned requirements is even higher.

After analysing the world’s most successful payment methods, one can clearly derive that they all arose from a combination of the following success factors.

Figure 3: worldwide most successful payment methods and basic success factors

The diffusion of already existing solutions in the automobile industry is additionally impeded by new EU-guidelines for relevant payment and loyalty solutions.

Figure 4: New EU-guidelines for payment methods and data privacy in 2018

With these new guidelines becoming legally binding in 2018, the complexity and liability risk for providers of proprietary payment solutions increases significantly.

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