Understanding Connected Cars
A connected car is simply any car that is linked to the internet with the intention of making life easier—linking people and services. The level of this connectivity is increasing daily, and now that cars are connected, manufacturers must decide what we want them to do. The fully connected car will consist of four main components: telematics (the integration of info technology and telecommunication), safety, consumer services and commerce—allowing drivers to interact with their route, their money and the people around them.
Over the last few decades, payments have evolved from a magnet strip on our bank cards to chips to Wi-Fi card capabilities to payments using our mobile devices. The automotive industry has also revolutionized how we will pay for goods and services in the future.
J.P. Morgan Payments has recently purchased a payments platform that will allow automotive manufacturers to design features that will connect using 5G mobility to allow payments to be made using our vehicles. The platform is currently available in Europe and is coming to the United States in the near future.
Telematics
Telematics are a starting point for the connected car. The more information that can be collected onboard, the greater possibility that it could help to create scalable mobility solutions. Analyzing data, such as seat belt usage, braking habits, acceleration speeds and odometer readings, increases safety and efficiency. Capturing the right data delivers enhanced vehicle intelligence and maximizes the driver’s experience—turning information into actionable solutions.
Safety and Environment
Drivers have become accustomed to connected vehicle features, such as OnStar, for more than two decades, but the true potential of connected cars is only limited to how far our imaginations can take us. Connected car data enables city authorities and first responders to enhance traffic patterns and response times by understanding how people move through the city. Vehicle telematics help mobility companies optimize products and design an infrastructure to provide more safe, efficient and sustainable commerce.
Areas that will benefit from improved safety and environmental analytics:
Fleet managementEmergency vehicles (police, fire and ambulances)Logistics companies (e. g. , UPS/FedEx)Delivery vehiclesShipping logistics
Consumer Services
Consumers are more connected now than ever before. Connected cars add a new level of enhanced mobility in a digital ecosystem in which consumers are already comfortable operating. Vehicles and their digital capabilities offer real-time feedback and analytics. These analytics can be used to offer insurance discounts to safe drivers, notify drivers when routine maintenance is needed and offer the ability to order car parts directly from the vehicle’s original equipment manufacturer (OEM) specifications using the car’s dashboard.
Ways to use analytics for consumer services are:
InsuranceRideshareVehicle paymentsOil change and repairsOrdering and paying for vehicle partsPaying for parking and tolls
Commerce
Financial, mobile and automotive industries have taken mobile payments to the next level—and the process continues to evolve. Just as we have accepted buying a cup of coffee with a wave of our phones, consumer acceptance and usage of invisible payments is growing. Imagine combining your mobile device and your vehicle to purchase concert tickets and then using your vehicle’s navigation to take you as far in the journey as it can, paying for parking, then purchasing subway tickets and navigating you to the nearest station.
This new thought process is less about using your car or mobile device and more about using them together to create the perfect balance of mobility. While you are on your trip, in-route merchants can offer contextual advertising, extending special deals and incentives along your course. Vehicle analytics can hone in on what radio station drivers listen to on a specific route, using digitization to customize marketing to drivers based on the information collected. Here are a few examples of contextual advertising along your route, available on your car’s dashboard:
Fast foodEntertainmentRestaurantsConvenience store discounts for items inside while pumping gasHotels
Money20/20
J.P. Morgan Payments executives Takis Georgakopoulos, Brad Brodigan and Adit Gadgil, spoke at Money20/20 USA in Las Vegas earlier this month about the future of connected cars, the shift to invisible payments and J.P. Morgan’s vision for how it will use telematics to improve consumer experiences and payments in the automotive industry. Using advanced payment alternatives, J.P. Morgan Payments will create digital solutions that will allow consumers to have an improved experience from anywhere in the world.
Newsweek spoke to Ali Almakky, global head of payments solutions for mobility for J.P. Morgan Payments. He said of J.P. Morgan’s role, “We want to facilitate use cases for higher consumer acceptance and demand, to be part of every possible use case and support, so we can grow with it.” He continued, “Our goal is to be ahead of the curve in each industry sub-vertical within mobility so that we can help to shape and define it.”
What Is Next?
Vehicle connectivity is a continual evolution. Mobile 5G technology is the foundation of connected cars today, and it opens the door to the future of the automotive industry. Connectivity technology is the rudiment of autonomous vehicles. The first truly self-driving vehicle will be revolutionary, allowing drivers to unlock newfound freedom while on the road. With this connected infrastructure in place, the possibilities for automotive technology are limitless.
