Waymo launched a transit rewards program Sept. 22 that lets San Francisco Bay Area riders link a Visa card to the Waymo app. When riders use that card for a Waymo trip and public transit within two hours of each other, they automatically receive $2.85 in Waymo Cash. The program applies to all 27 Bay Area transit agencies that accept contactless Visa payments and begins with Waymo employees before rolling out to the public.
The program points toward a broader role for payments inside connected transportation. Customers can use a credential to connect activity across a journey rather than simply paying for each piece separately. The program uses the linked Visa card to determine whether qualifying Waymo and transit activity occurred within the two-hour window and then issues the reward.
One Credential, More of the Trip
Other mobility payment systems are assembling more of these formerly isolated actions.
In March, Paythru Visa developed a white-label fleet wallet through which drivers can pay at Visa-accepting electric vehicle chargers and make employer-approved payments for parking and tolls PYMNTS reported March 19. Fleet operators can control permitted spending and view payment data in one place.
Mastercard and mobility technology company ryd launched a European fleet payment system in May that can handle fuel, charging, car washes and other fleet expenses. Payments can be initiated through an app or the vehicle’s infotainment system, while the app can record receipts, odometer readings and trip details at the point of use.
The individual purchases are familiar. What is changing is the ability to organize them around the driver, vehicle and trip. The commerce opportunity broadens because the vehicle and the services connected to it can have information that a conventional checkout does not, including location, route and vehicle status such as fuel or battery level.
Consider what that could mean, in one scenario, for a gas station.
A connected vehicle could identify that its fuel level is low while the navigation system knows the route. Instead of merely identifying nearby stations, the system could eventually present an eligible offer to stop at a participating station, pay with a particular linked credential and receive a discount on a convenience store purchase.
The offer could influence three decisions at once, including where to stop, what else to buy and which payment method to use.
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The PYMNTS Intelligence report “Embedded Offers: The Billion-Dollar Opportunity Inside Recent Consumer Spending” found that 81% of the 2,754 consumers surveyed said embedded offers would influence where they shop, and 77% said real-time savings would be at least somewhat influential in making a payment method their default.
The research also revealed that payment-linked offers have room to become more visible. Only 10% to 17% of shoppers noticed payment-linked offers during their most recent grocery, restaurant or retail purchase, depending on the category. Yet 43% of consumers who redeemed an offer changed their payment method to do so.
For connected cars, timing is part of the opportunity. Instead of discovering a discount at checkout, the driver could receive it while deciding where to stop.
Fuel loyalty programs already demonstrate how rewards can steer that decision outside the vehicle. In July, Amazon Prime members could link their accounts with bp’s earnify program and participate in a limited-time offer at bp, Amoco, ampm and Thorntons locations, PYMNTS reported June 30. Bringing that type of offer into the connected car environment could move the incentive closer to the moment the driver decides where to refuel.
A fuel offer could bring the driver to the station, while a convenience store reward could give the merchant a reason to extend the transaction beyond the pump. Electric vehicle charging provides another example. A driver who needs to spend time charging could receive offers from restaurants or retailers near the charger. Parking could work similarly, with nearby merchants presenting offers around the destination.
Who Controls the Credential?
Control of the payment credential is divided among several parties. The bank issues the underlying card account, while payment networks can tokenize card credentials for use in digital environments. A wallet, mobility service or connected car platform can provide the interface through which the driver enrolls or selects a card, subject to the arrangements among the issuer, network and digital payment provider. The merchant controls whether it accepts the payment method and can fund offers tied to a purchase.
That division makes control of the customer interface valuable without giving the automaker or mobility platform control of the underlying card account. An automaker determines what appears on its dashboard, while a navigation service may know which merchants are along the route. A fuel retailer or restaurant can fund an incentive. Issuers, networks and payment providers can support the credential and payment-linked rewards. The precise transaction data available to each participant depends on how the service and payment arrangement are structured.
The commercial continuum extends beyond whether a car can pay for fuel, charging, parking or a toll. It also concerns who controls the interface where a credential is selected, which parties can connect activity across transactions and who gets the opportunity to present an offer before the driver’s next purchase.
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