Honda, Visa work to digitize common driving payments

Automakers are rushing to embed payment capabilities and web-enabled features in their cars, with Honda being the latest to make tasks such as parking and fueling an automated part of the driving experience.

The automaker is partnering with Visa to execute payments, IPS Group for parking transactions and Gilbarco Veeder-Root for fuel payments. The four companies are offering a proof of concept demonstration at the annual Consumer Electronics Show.

The new payment services were built in the Honda Developer Studio and provide notifications for drivers that they can pay for fuel or parking when near a web-connected parking meter or pump. The purchase amount is displayed on the dashboard and drivers confirm payment by touching a button. Honda is discussing further use cases with other companies to order and pay for items beyond parking and gas.

"Turning the car into a platform for payments offers a nearly endless array or ways for automakers, drivers, merchants and other infrastructure companies to completely transform task that are tied to cars in some shape or form," said Avin Arumugam, senior vice president of Internet of Things for Visa.

Visa has long sought to place preordering and payment technology inside cars. Honda is among a growing market of automakers that see an opportunity to use the web connectivity of newer car models to generate added revenue.

For example, GM uses Onstar's web connectivity to help drivers determine distance to fueling stations. And Mastercard is part of a collaboration with GM and IBM to embed voice-controlled payments inside of cars.

David Paul Morris/Bloomberg