Leading the charge: How to simplify plug and pay for EVs

In the U.S., some say that the electric vehicle boom is over. But new data from last month’s Detroit Auto Show tells us a different story: Global EV sales jumped 25.6% year-on-year for fully-electric and plug-in hybrids, and even in the U.S. and Canada, EV sales rose nearly 9%, although macroeconomic factors could slow momentum going forward.

This seismic shift is supported by the growth of public charge points, improved battery performance, more models that can go 300 miles or more on a single charge, and in some countries like Norway, where in January nearly 96% of new cars sold were electric, policies like tax incentives and perks like free parking and access to bus lanes. But challenges remain — among them critical payment experiences, which today are inconsistent as car manufacturers and charge point operators steer experiences through their own platforms in an effort to own the consumer journey.

That’s why Mastercard is working with the EV ecosystem to advance the technology and establish common payment standards to address this fragmentation. This includes upgrading legacy infrastructure, foregoing closed systems and embracing a simple, interoperable paradigm. It’s similar transformation to how public transit embraced tap-to-ride payments in markets across the world, enabling contactless payments from cards, digital wallets or wearables — no bespoke ticketing required, no additional app to download.

“Today, the global language is digital, but a lack of common digital standards can hinder innovation and counteract efforts to build a stronger, more inclusive global economy,” says Jennifer Marriner, executive vice president for Global Acceptance Solutions at Mastercard.

Making EV charging payments open loop is a critical initial step to achieving real interoperability and ubiquitous access for drivers, she says. “Our vision goes even further as we look to deliver an exceptional in-car experience from start to finish — from storing payment credentials in-car to connecting vehicles to EV charging stations, making seamless Plug & Charge a reality.”

For years, Mastercard has worked to leverage its technology and global acceptance network to provide embedded digital payments and unlock access across a range of mobility experiences, including EV charging. This includes forging partnerships across the payments and connected car ecosystem to expand the contactless charge point footprint, advocacy to support global, open-loop Plug & Charge standardization, and developing of a new platform to support seamless digital payments for EV charging.