New mobility, new payment perspectives
International regulations for the implementation of alternative energies present both challenges and opportunities for various players in the evolving mobility landscape. MobilityPlaza explores insights from suppliers to understand how this is influencing the development of new equipment and solutions to shape the future of transactions.
The fuels of the future will shape not only how vehicles are powered but also how customers interact with service stations beyond refueling. The length of their visit, the range of services available, and even payment methods are undergoing significant changes as a result of the mobility revolution. While new technologies are accelerating this transformation, regulations also play an important part on how these are implemented on roads worldwide, ultimately impacting how customer trends will develop in the future.
Both the European Union’s Alternative Fuels Infrastructure Regulation (AFIR) and the United States’ National Electric Vehicle Infrastructure (NEVI) Formula Program establish minimum standards for payment operations at charging facilities. These regulations are influencing transactional operations across continents and requiring charging point operators (CPOs) to invest in compliance with the new requirements. What is their impact on equipment and service providers? How are these companies adapting to align with the evolving standards of the new mobility landscape?
Harnessing the power of compliance
Key mandatory standards include acceptance of major credit and debit cards, contactless payment options, and accessibility features for people with disabilities. While these requirements are essential for ensuring a uniform and inclusive charging experience, they may result in increased investment and operational challenges for mid-sized and smaller players. This situation is especially exacerbated amidst the fragmented e-mobility landscape.
“Providing different means of authentication and payment is an essential component to respond to the accelerated democratization of electric vehicles and, consequently, the increasingly diverse profile of users of electric charging points,” explains José Taledo, Chief Commercial Officer at MADIC.
The expert emphasizes that familiarity is crucial for achieving a seamless experience. While hydrogen's similarity to traditional fuel offers an advantage, EVs present a more complex framework. E-mobility encompasses various factors, including power availability, charging time, charger interfaces, and more, making standardization a challenging task in such a diverse landscape.
“We learned that launching a new site with in-person payments created a huge bottleneck for our partners from an operational perspective,” states Patrik Trelsmo, Product Manager for Payments at Spirii. The company is helping partners such as Audi and Circle K to streamline operations and reduce the time from site commissioning to accepting the first payment. As the EV race continues, a more focused approach is required to tackle this increasingly fragmented context.
Taledo highlights the importance of agnosticism for seamless vertical integration, staying informed about evolving regulations, and maintaining strong customer relationships as key strategies for staying ahead during this transitional period. The level of multitasking required to develop and establish a charging site can be quite challenging for a single company, given the multilateral approach needed to create a convenient and engaging experience for drivers.
Fixed standards in a diverse landscape
You don’t need to travel from one country to another for the EV charging experience to change drastically. Simply switching from one charging location to another can result in a completely different process for completing a charging session. The lack of regulations tackling interoperability issues creates a confusing experience for drivers, as each becomes inconveniently unique.
“The main challenge for EV drivers today is the fragmented state of the market. There are many ways of authenticating and paying for charging, all with their specific nuances and user journeys. This makes every charging session at a new site a learning experience,” describes Trelsmo.
Regulations and government-fund initiatives supporting the adoption of EVs may also trigger the emergence of new e-mobility Service Providers (eMSP). While technology remains at the forefront of the next generation of mobility, suppliers and manufacturers are still prioritizing delivering real value to their customers. Redundancy looms on the horizon in a sector that continues to face significant challenges.
Both Taledo and Treslmo emphasize pricing transparency as a crucial factor in designing payment solutions within this evolving landscape. This encourages CPOs to develop charging strategies rooted in transparency, enabling them to offer more flexible services as a wider range of options becomes available. Factors such as the ability to offer dynamic prices, implement storage systems, and ensure traceability and Level 3 data capabilities are expected to become increasingly important in the future.
The emergence of new eMSP alongside established players underscores the need for adaptability and innovation in an increasingly diverse and complex sector. By prioritizing versatility, pricing transparency and embracing a customer-centric approach, suppliers can navigate the challenges of this fragmented market and keep evolving amidst the energy transition.
