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Insights and Expertise

• Credit and debit card payments: Many charging Balancing efficiency, security and convenience
stations now include contactless card readers for
payments, eliminating the need for apps or mem- CPOs and payment providers can streamline EV charging
berships. This method mimics traditional fuel pay- payments by focusing on the following initiatives:
ment systems, making it especially appealing to • Partnering with full-stack payment providers:
new EV drivers.
Working with comprehensive payment service pro-
For instance, the UK required all public charge viders (PSPs) that manage multiple payment func-
points offering 50kW or more to support contactless tions helps reduce complexity while enhancing ef-
payments by November 2024. Similar requirements ficiency.
have been set by the EU under the Alternative Fuels
Infrastructure Regulation (AFIR). • Enhancing driver convenience: Features like one-
click payments through apps and contactless op-
• Account-to-account payments: Emerging in Eu- tions at charging stations can significantly improve
rope, this system bypasses card networks altogeth- the user experience.
er, enabling direct bank transfers. While still in their
early stages, initiatives like WERO are driving its
adoption within EV charging.

Additionally, mobile wallets (such as Apple Pay and EVs: From 19th-century innovation
Google Pay) are gaining popularity. These wallets al- to 21st-century adoption
low quick and secure payments, though they still rely on
linked credit or debit cards. In the 1830s, Scottish inventor Robert Anderson
developed one of the first crude electric carriages,
Other innovative solutions, like Plug & Charge technol- marking the inception of electric mobility. By the
ogy, offer automated communication between EVs and late 1800s, EVs gained popularity due to their quiet
charging stations. Here, payments are processed directly, operation and ease of use compared to steam and
often using a pre-registered card. gasoline vehicles.

Enhancing user experience and security However, with the advent of mass production by
Henry Ford and the discovery of vast petroleum
Payment processes must be designed to offer convenience reserves, internal combustion engine vehicles be-
without sacrificing security. Here are key factors CPOs came more affordable and convenient, leading to a
must address to ensure a hassle-free experience: decline in EV popularity by the 1930s.

• Payments in outdoor environments: Many charging The oil crises of the 1970s and growing environ-
stations are located outdoors, where entering payment mental concerns reignited interest in electric
information can be challenging due to poor weather transportation. Technological advancements in
conditions. Contactless card readers and pre-saved battery storage and a push for sustainable energy
payment preferences in apps can alleviate this frustra- sources further propelled EV development. But it
tion. wasn't until the 21st century that EVs began to gain
significant market traction.
• Reliability of payment systems: Payment failures or
processing delays can disrupt drivers' plans, causing According to the International Energy Agency,
unnecessary inconvenience. Payment systems need to electric car sales reached nearly 14 million in 2023,
operate smoothly and consistently to maintain user accounting for approximately 18 percent of all car
trust. sales that year. This growth is concentrated in
China, Europe, and the United States. China alone
• Security and compliance: Safeguarding user data is accounted for nearly 60 percent of new electric
critical as EV charging payments become increasingly car registrations in 2023, with over 8 million units
digital. Charging networks must comply with secu- sold. Europe followed with approximately 3.2 mil-
rity and privacy standards such as the Payment Card lion sales, while the U.S. registered around 1.4 mil-
Industry Data Security Standard (PCI DSS) and Gen- lion new electric cars.
eral Data Protection Regulation (GDPR).
This rapid growth underscores the shifting dy-
AFIR further mandates secure communication proto- namics in the automotive industry. Those who
cols like ISO 15118, as well as the adoption of 5G tech- eliminate friction at payment stations and at other
nology to bolster both speed and security. pain points for EV drivers will be well-positioned
to prosper in this market.

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