‘Drive-through’ Payment

The service named “Connected cars” to be launched by Shinhan Card is a smart payment service that gives vehicles a unique ID (ID) to make cars a payment instrument which makes . “My car” soon become a “credit card.”
The service named “Connected cars” to be launched by Shinhan Card is a smart payment service that gives vehicles a unique ID (ID) to make cars a payment instrument which makes . “My car” soon become a “credit card.”

 

There comes a "drive-through" payment era. In this era, you can buy things in your car even if you do not carry your credit card. Shinhan Card said that the company will launch a test for commercialization of the “connected car” service this month and start the service in the Gangnam area of Seoul and some parts of Gyeonggi Province during the first half of next year. The service named “Connected cars” is a smart payment service that gives vehicles a unique ID (ID) to make cars a payment instrument. “My car” soon becomes a “credit card.”

To use this service, you first need to register your Shinhan Card in “Pick”' App of Owin, a fintech company for automobiles that developed the technology. "In the second half of the year, some Peugeot models will come with this system. They will be able to function as credit cards," said Kim Gyu-tae, general manager of Owin "In addition to buying things, we plan to expand our services to unmanned parking lots among others." The connected car service is generally convenient, but a user has to install a receiver in his or her car and carry a smartphone.

Shinhan Card and Owin are also discussing collaboration with gas stations such as GS Caltex, food and beverage companies such as Starbucks, McDonald's and large marts. When the connected car service is commercialized, companies can provide quick service and solve customers’ parking problem at the same time.

Experts regard the connected car service as an intermediate step towards an era of autonomous driving vehicles. It is now in its toddler stage. But as the service evolves in the future, drivers will be able to pay for things in the car, and even wirelessly communicate with nearby vehicles or buildings. According to PricewaterhouseCoopers (PwC), a global consulting firm, the global connected car market is expected to reach US$133.5 billion by 2021.

"Stores are able to accumulate big data such as vehicle locations and utilize them for their marketing," said Lee Yong-yong, manager of the Business Tie Team at Shinhan Card. "If drive information is accumulated via this service, this service will be able to change purchase pattern, surrounding commercial zones and road conditions a great deal.”

 

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