The days of fumbling for coins at parking meters or struggling with payment booths are fading fast. Thanks to advancements in digital payment technology, paying for services from your car is becoming seamless. Imagine a world where your vehicle acts as your wallet, simplifying everyday transactions.
This vision is the driving force behind Mercedes Pay, an innovative in-car e-commerce platform designed to streamline purchases of Mercedes-Benz products and services. Now, through a strategic partnership with Mastercard, Mercedes Pay is enhancing the security and convenience of in-car payments even further. Starting in Germany with 3,600 service stations, drivers can now utilize a fingerprint sensor within their vehicle to effortlessly pay for fuel. This eliminates the need for PIN codes at the pump or mobile device authentication, marking a significant leap in payment convenience. This collaboration marks a pivotal moment, transforming the car dashboard into a secure and efficient point-of-sale system, fundamentally changing how we interact with “Mercedes Moto” and in-car commerce.
To delve deeper into this payment evolution, Mastercard Newsroom engaged in a conversation with Nico Kersten, CEO of Mercedes Pay. Their discussion explored the platform’s journey, the hurdles overcome, and the exciting trajectory of in-car payments in the age of “mercedes moto” innovation.
Mercedes Pay+ launched in 2018. How has the rapid pace of digitalization, particularly intensified by the pandemic, influenced its development and the concept of “mercedes moto” within the automotive space?
Kersten: The automotive landscape has undergone a dramatic transformation in the last decade. Vehicles, both in terms of software and hardware, have reached unprecedented levels of sophistication. The same evolution is true for payment systems. When I joined Mercedes-Benz two decades ago, the idea of a car as a payment device was still in its infancy. However, the automotive business model is expanding beyond traditional sales and maintenance. Our comprehensive Mercedes-Benz ecosystem is focused on simplifying our customers’ lives, encompassing all aspects related to their vehicles. Digitalization unlocks entirely new possibilities. For instance, we provide effortless access to everyday services like charging, parking, and fueling through seamless integration with third-party providers. The convergence of automotive and fintech innovations allows us to elevate the in-car payment experience, especially within the context of “mercedes moto” and the future of automotive technology.
What were the primary challenges Mercedes-Benz encountered in ensuring secure authentication for payments and other digital in-car services, especially as it relates to “mercedes moto” and user security?
Kersten: Mercedes-Benz vehicles are synonymous with safety, and this principle extends to our payment systems. We prioritize the secure storage of card data and adhere to all relevant payment authentication regulations. Europe has implemented stringent customer authentication rules designed to protect consumers, but these regulations aren’t always optimized for user experience. This was the core challenge we aimed to address. By collaborating with Mastercard, we’ve streamlined the authentication process, particularly in the “mercedes moto” payment environment. This partnership has enabled us to introduce biometric authentication within the car, significantly enhancing both security and user-friendliness.
“We are dedicated to continuously providing our customers with the most valuable asset: their time,” emphasizes Nico Kersten, highlighting the core mission behind Mercedes Pay and its commitment to “mercedes moto” efficiency.
Considering the enhanced payment experience directly from the car, how quickly do you anticipate drivers embracing digital in-car payments as part of their daily routines, and how does this align with the “mercedes moto” vision of seamless mobility?
Kersten: I am very optimistic about the adoption rate. We are continuously expanding our customer offerings with innovative and convenient services that will quickly become integral to their daily lives. Just last month, while driving in the Netherlands, I experienced this firsthand. Upon entering a parking lot, a message appeared on my dashboard: “Do you want to pay for parking?” It was that simple and intuitive. The more people experience this level of ease, the more they will come to rely on and appreciate it. This seamless integration is central to the “mercedes moto” philosophy of effortless mobility.
Was there a sensor in the parking lot that automatically facilitated that connection, enabling this “mercedes moto” style automated payment?
Kersten: Exactly. In this era of connected vehicles, we leverage precise vehicle geopositioning to offer localized services, such as utilizing on-street parking spots and initiating payments automatically. This interconnectedness is a key feature of the “mercedes moto” ecosystem.
Self-driving car technology promises to transform vehicles into multi-functional spaces for shopping, work, and entertainment. How is Mercedes Pay innovating to prepare for this future, and how does “mercedes moto” fit into this vision of future mobility?
Kersten: While self-driving vehicles will undoubtedly expand the driver’s capabilities, even current Mercedes-Benz vehicles are equipped with built-in tablets for passengers, enabling entertainment options like movies and games. As technology advances, we have numerous ideas regarding the services drivers and passengers will find valuable. Our ongoing commitment is to save our customers time, offering them the most precious commodity. This focus on time-saving convenience is at the heart of both Mercedes Pay and the broader “mercedes moto” concept, ensuring a future of seamless and efficient mobility.
