Those small devices stuck to the inside windshield of most cars can now do more than just pay for tolls. Technology firm Verdeva has teamed up with Alltown convenience stores in the Boston area to use the toll transponder as a remote payment device when tanking up the car. This sets up other mobile pay opportunities that Verdeva is pursuing as well, including C-stores and QSR drive-thrus. Cars are becoming de facto mobile pay devices and it’s no surprise that many players including software developers, payment card issuers, smartphone makers, and auto firms are looking to gain a piece of the connected car market.
A Traffic Technology Today article discusses more on this topic which is excerpted below.
A breakthrough in-vehicle payment system that lets drivers use tolling transponders to simplify and speed-up non-toll transactions has been launched at a gas station in Massachusetts.
Developed by Boston-based in-vehicle payment innovator Verdeva, the PaybyCar system enables drivers to purchase gas from their car without taking out cash, a credit card or a mobile app. PayByCar is ‘frictionless’, with drivers opting-in to the program and choosing the payment method, such as credit or debit card or e-wallet, that they will be using for non-toll charges. Purchases through PayByCar do not go through a regular E-Z Pass toll account, but are charged directly to the chosen payment method.
When a member drives up to a participating retailer, a PayByCar RFID (Radio Frequency Identification) reader recognizes the toll transponder on the car and the presence of the driver’s cell phone. The system sends an SMS text message to the user’s smartphone, and they reply with just the pump number. PayByCar automatically turns that pump on, registers the transaction in the non-tolling account, charges the card and sends an email receipt with retail offers for that visit.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group