Shining a light on payment trends in the electric vehicle charging industry

Photo: Maxim Hopman

Written by Max Nurse-Bosley, GTM Analyst, Worldpay

Worldpay is the world’s global leading acquirer with 30+ years of experience in payments across 146 countries. As a Platinum Sponsor at MOVE America 2023, their team of vertical experts examines the trends and drivers for growth impacting the world of urban mobility today and identifies how an effective payment strategy can generate more revenue for businesses across the globe.

The highlighted insights below give us a sneak preview from their latest Future of EVC Payments white paper and upcoming Urban Mobility Payments Report. The report is based on their recent study conducted in the US and U.K. to understand the payment habits and preferences of 2000+ regular and frequent transport users across multiple forms of transport.

 

Industry Growth

Electric vehicle (EV) sales are estimated to rise to 20% of total car sales globally by 2025, with a staggering 59% projected by 2035. The rapid growth of the EV market has fuelled an equally rapid expansion of electric vehicle charging (EVC) infrastructure, with its global market value reaching $26 billion in 2022 and further expected to soar to an impressive $222 billion by 2030. This growth has been largely triggered by the escalating global environmental crisis putting an increased focus on sustainability across various industries. This is particularly important in the automotive sector, which despite its historical contribution to pollution is now positioning itself as a leader in driving positive change. EVs and the subsequent development of EVC infrastructure are at the forefront of this transformation.

 

Regulatory Change

In addition to environmental concerns, the growth of the EVC industry is also propelled by legislative measures aiming to promote EV adoption. For instance, several North American states and EU member countries have committed to prohibiting the sale of new fossil fuel vehicles by 2035. Additionally, numerous governments in the EU and US have implemented initiatives to enhance the accessibility of EVCs for customers and improve the overall customer experience provided by EVC suppliers. For example, the US government has promised to implement 500,000 EV chargers before 2030. Another notable initiative involves the implementation of card-present terminals throughout Europe. This initiative seeks to address one of the major barriers to public EVC usage, which is the inconsistency and unreliability of payment methods, by establishing a standardized payment experience across the market for users.

 

Consumer Expectations

In a highly competitive market with numerous mobility service alternatives, delivering a seamless user experience is paramount for operators looking to drive demand and foster customer loyalty. The payment process holds significant importance in the customer journey and Worldpay’s recent study strongly indicates that ‘convenience’ is the top priority for consumers when it comes to their payment experience. It was also found that 43% of US consumers and 50% of UK consumers have at times chosen not to charge their vehicles due to the lengthiness of the payment process. This highlights the damage that is caused to EVC businesses when their payment experience does not match their customer expectations.

 

A Lack of Brand Loyalty

The research also examined the preferences of customers regarding their choice of EVC brand. When asked whether they opted for a specific EVC brand, it was revealed that the vast majority, 77% US consumers and 88% UK consumers, leaned towards using whatever brand was available (these findings exclude Tesla drivers). For EVC suppliers, this absence of brand loyalty poses challenges such as unpredictable demand and a higher likelihood of customer churn. However, it also presents an opportunity for EVC suppliers to break this pattern by addressing customer pain points, such as lengthy payment processes, by providing a seamless and consistent payment experience.

 

To learn more about EVC trends and how your business can seize the opportunities these create, read our latest insights on The Future of EV Charging Payments here.

Want to keep seeing which stories are sparking the mobility community? Sign up to our MOVEMNT newsletter for weekly updates every Thursday 8am