At the Mobile World Congress in Barcelona this week, Visa will debut prototypes of its new connected car apps, which use the Internet of Things and Visa mobile payments to help drivers pay for things like gas and parking from the driver’s seat.
Partnering with Honda, Visa built an app located in a car’s dashboard that uses the brand’s Visa Token Service to make payments outside the car. Tokens are linked to bank accounts and much harder to scam or steal than credit card information. These tokens are also exclusively for car-related purchases through the app.
So how does it work? When your tank is low, the app notifies you and knows just how much gas the car needs to fill up. When you arrive at a gas station, Bluetooth allows you to pay for the fuel with tokens through the app, without leaving the car.
Similarly, a second Visa car app can pay parking meters by calculating how much a spot costs. This is done through a partnership with booking app ParkWhizz and is only accessible at one of the partner’s locations.
This is just the start of Visa’s vision for the Internet of Things and Tokens:
So what does it mean for brands? Coffee or other gas-station related brands could potentially tap into the car app to offer exclusive discoutns and offers to customers who use the technology to buy their products. If this technology sticks, it could be used for other types of vendors and stores, further opening the possibility for brands to connect with consumers using mobile payment apps.
The car apps will be tested in the spring, but there are still a lot of bugs to work through before this kind of car-payment technology becomes a widespread reality. It also has huge cost implications, since gas pumps and stations will need to be equipped with the proper technology. Not to mention, there will need to be standard protocol and procedures for the token payment methods.
Why It’s Hot: Cash and credit cards are slowly being phased out thanks to apps like Venmo and even social options such as Snapchat pay. With Visa’s new app, drive-thrus and gas stations could be totally cash and credit free. It will be interesting to see how secure this technology is and how many will be willing to completely ditch old ways for this alternative way to pay.