BlackBerry and Car IQ partner look to transform cars into mobiles “wallets”

OTTAWA — A Canadian software company, BlackBerry, is teaming up with a U.S.-based firm to transform cars into “wallets,” which will pay for parking fees and bridge tolls as well collect payment for ride-sharing or parcel delivery.

The agreement was announced Wednesday by Car IQ, Oakland, Calif. It aims to tap into a connected vehicle payments market, which Waterloo-based BlackBerry estimates will reach billions in a decade.

This system will connect Car IQ’s financial program with in-vehicle computing from BlackBerry’s IVY and allow for direct access to vehicle sensors. Edge computing is where data are processed locally and not transmitted to another location.

In a press release, Peter Virk, BlackBerry vice president and President said that “access to sensor data will allow for an extremely secure in-vehicle payment solution.”

Automakers have tried for years to develop systems that can mimic smartphone-based mobile-payment technology. BlackBerry stated that the complex processes required multiple apps or legacy banking tools such as physical credit cards, to connect with service providers and merchants.

The companies stated that the embedded Car IQ software creates a digital fingerprint which allows vehicles to connect quickly to a bank’s network to validate and pay items autonomously, from fuel to tolls to maintenance.

Nicolas Drachoussoff, a financial tech analyst says that vehicle-based mobile wallets can even make money for car owners. For example, the carmaker and the owner could share the revenue from traffic sales and any other vehicle data. Amazon and Audi have tested an arrangement in which parcel-transporting drivers receive a payment.

Drachoussoff stated that “Ultimately turning cars into wallets might increase the public’s interest in car sharing” in an Initio report. This is partly due to the simplicity of sharing costs.

The financial terms of the agreement weren’t disclosed.

Publiated at Thu, 12 August 2021 16:08.09 +0000

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