JJ Eden, executive director of North Carolina Turnpike Authority, gives his insight into the importance for toll operators to manage new payment systems that are coming, including in-vehicle payments
In the age of digital transactions, the customer is at the forefront of every market. Merchants must prioritize and personalize the customer experience, making them an integral part of the current and future product use. As in-vehicle services regarding vehicle maintenance evolve into in-vehicle payments, from toll roads to fuel stops, every part of the journey must be personalized and secure, ensuring the customer feels valued and integral to the industry’s success.
Personalizing payments means defined personas that allow customers to select pre-determined partnerships related to the vehicle. This also provides flexibility to adapt to millions of customer patterns, commutes, and vehicle types. By reducing the friction for the customer, merchants can connect with customers, capture the sale immediately, and build loyalty.
As top-down payment card options are being diluted from consumer demand to use mobile phone-based payment rails, the race to reduce friction across the payment channels is picking up pace. As a result we can expect to see additional payment rails become more prominent as merchants meet the customer where they are and do not require conformance to limited channels. In-vehicle payments expand opportunities to bundle services in transportation such as maintenance and vehicle charging.
“It is crucial that merchants design a secure network that allows the customer only to share data they deem necessary”
With the power of data-sharing shifting to first-party consent, it is crucial that merchants design a secure network that allows the customer only to share data they deem necessary. As connected vehicles evolve with new standards for sharing data, and more redundancy to increase safety, adherence to these standards becomes vital. Ensuring the confidentiality of personal information during payment transactions, whether it’s for road user charging, fast food purchases or car services, is essential for maintaining trust and protecting individual privacy. Class action lawsuits on the use of customer data are emerging now and they stem from the lack of transparency and understanding of the market by consumers. So, unfortunately, like most other innovations, courts will decide, at least initially, how the vehicle industry will use, disclose, and share data.
Imagine in-vehicle services where convenience meets privacy. Customers can seamlessly pay for tolls, fuel a vehicle, grab a quick bite, and access vehicle information without compromising sensitive information. This balance between efficiency and privacy will create more efficient transportation networks and become an economic engine that optimizes capital markets. As we embrace technological advancements in the transportation sector, we must advocate for robust privacy protocols and transparency in collecting, storing, and utilizing payment data.
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This article first appeared in the December 2024 edition of TTi magazine
