Sirius XM (SIRI - Free Report) and Visa (V - Free Report) announced their plan to introduce an in-vehicle payment solution at the recent Consumer Telematics Show in Las Vegas.
The companies noted that this service, once deployed on the dashboard, will allow car users to easily make and manage purchases such as paying for coffee, parking and movie tickets among others. Notably, users can “activate and authenticate” payments with their Visa accounts by using biometric authentication like touchscreen commands and voice.
Additionally, the in-vehicle payment solution will allow safe and secure transactions with the help of technologies such as Visa Token Service. Sirius XM noted that the service will be presented to automobile manufacturers during 2019.
Partnerships with OEMs to Boost Services Reach
Sirius XM, which has strong relationships with automobile OEMs, is looking to provide real-time vehicle services to its users.
Earlier, the company introduced an aftermarket solution to enable smart services at a few dealership locations. Notably, the dealers will offer car buyers three years of free crash alert as well as free premium services like roadside assistance for six months.
With Sirius XM-enabled radio vehicles increasing on the road, we believe the adoption of its other connected services may also increase owing to agreements with OEMs. Notably, over 113 million vehicles on road were equipped with Sirius XM-enabled radios, up 13% year over year in third-quarter 2018.
Additionally, Sirius XM’s penetration into the connected vehicle services business with OEMs like Nissan, Fiat Chrysler and Toyota has been increasing. Moreover, the company extended agreements with OEMs like Audi, Mazda, Land Rover, Mercedes-Benz, Jaguar and Volvo in third-quarter 2018.
Sirius XM Holdings Inc. Revenue (TTM)