Daimler and Visa form global technology partnership to integrate digital commerce into the cars

As a result of a new global technology partnership between Daimler Mobility and Visa, Daimler will offer “native” in-car payments. This means that entering passwords or relying on mobile devices for payment authentication may soon be a thing of the past as the vehicle itself becomes a biometrically enabled payments device, thanks to Visa’s Delegated Authentication technology.

From spring 2022 onwards, Mercedes-Benz customers in the UK and Germany will be able to make payments using a fingerprint sensor in the car, with other European markets to follow.  Purchases can then be made directly through the car’s head unit, or MBUX. The solution is anticipated to be available in other markets globally at a later stage.

Antony Cahill, Deputy CEO and Head of European Markets, at Visa in Europe: “We are excited to bring to life a native solution for in-car payments for the first time, together with our partner Daimler Mobility. It is significant that both the successful pilot testing and initial launch activities are taking place in Europe, a world-leading hub for payments and automotive innovation. This is a powerful example of how the world’s leader in digital payments and the inventor of the automobile are able to combine their technologies to create the next generation of smart solutions for the automobility sector, providing the driver and passengers with a completely new in-car connected commerce experience.”

Franz Reiner, Chief Executive Officer, Daimler Mobility: “Mercedes pay is our competence centre for in-car payment, through which we offer our customers worldwide digital services seamlessly integrated within the Mercedes-Benz ecosystem. In partnership with Visa, Daimler aims to offer native in-car payments that meets the requirements of two-factor authentication in a secure and user-friendly way. There is nothing more convenient than authorising a payment with your fingerprint. A luxury customer experience of course includes the aspect of safety, and we fulfil that through native in-car payment. We offer our customers security not only when driving, but also when paying.”

Mercedes pay is a component of Daimler’s mobility and digitalization strategy, and a business segment of Daimler Mobility. Daimler will be the first ever automotive company in the world to incorporate the Visa Cloud Token Framework into its vehicles. Visa’s Cloud Token Framework is a cloud-based security technology that allows more flexibility across multiple devices as Visa Cloud Tokens protect and remove sensitive payment information by converting data and storing it securely. They also enable multiple device pairing in and beyond the car, which are then directly integrated with the consumer’s bank credentials. This significantly improves the overall payment experience as consumers no longer need to enter long card numbers to complete a purchase or switch between devices to authenticate payments. The solution will be used to initiate a two-factor authentication.

In the next two years alone, the number of connected cars is estimated to increase to more than 352 million worldwide and the total volume of in-car payments is set to reach approximately $86 billion by 2025.