Connected Cars Unlock New Fleet Payments Use Cases

The pandemic may have slowed the global connected truck market, but as restrictions wane and supply chains recover, that market alone is expected to have a compound annual growth rate (CAGR) of 16% through 2031. At the same time, the global automotive software market is predicted to grow to $57 billion by 2030 with a 15% CAGR.

As businesses look to update their fleets, the benefits of connected vehicles are likely to make such technology the new normal for fleet operations. Already, 86% of surveyed operators of connected fleets reported receiving a return on their investment within one year due to reduced operational costs.

The “B2B And Digital Payments Tracker®” explores the potential opportunities for B2B software and services related to connected vehicles.

Around the B2B and Digital Payments Space

Connected fleets can offer several benefits in terms of managing and maintaining vehicles. One recent study demonstrated a 13% reduction in fuel costs for surveyed businesses as well as improvements to preventive maintenance. The same study showed a 40% reduction in hard braking, indicating changes to driving habits that could both contribute to parts longevity and improve driver safety.

As B2B services providers look to offer connected vehicle technology for fleets, small fleets are an important market to recognize. Nearly 92% of all fleets operate six or fewer vehicles, which has spurred efforts such as the partnership between Driver Technologies and fleet management solution provider Fleetr to offer those businesses telematics and other connected vehicle functionalities.

For more on these and other stories, visit the Tracker’s News and Trends section.

The Changing Relationship Between Customers and Vehicles

Connected vehicles are making it simpler for manufacturers to understand how their customers use vehicles and offer the features and capabilities that fit those needs. At the same time, connected technology also takes customization to the next level by permitting settings and options to be set through an app for such use cases as rental companies and vehicle-sharing businesses.

Some of the biggest changes of having a more connected world will come from a more connected car-buying experience, and that opens up significant opportunities for automotive companies and dealerships to make it easier for buyers to identify the options and features that suit their needs.

To learn more about how connected vehicles are revolutionizing fleet operations and car buying, PYMNTS spoke with Alain Nana-Sinkam, senior vice president of business development at TrueCar.

Connected Fleets Are Becoming the New Normal

Since the first connected vehicle technology was introduced by GM with OnStar, technology has gradually become more and more integrated into everything about how individuals use their vehicles — from navigation to knowing when their tire pressure is low. In the case of businesses, connected vehicles have gone even further, offering the ability to track vehicles and locations,  predict maintenance issues and communicate with drivers.

Now 72% of surveyed fleet operators say that vehicle connectivity is a priority even just for the cost savings involved, and that offers significant B2B opportunities for providing services and functionality as connected fleets become the prevailing trend.

To learn more about the B2B potential of the connected vehicle space, read the Tracker’s PYMNTS Intelligence.

About the Tracker

The “B2B And Digital Payments Tracker®,” a collaboration with American Express, examines how connected vehicles are permanently changing how businesses manage fleets.