Mastercard Incorporated (NYSE:MA) has joined forces with Germany’s municipal utility consortium, Thuga, and the specialist in electric vehicle (EV) charging billing, SMART/LAB, to create a user-friendly solution for facilitating card payments at EV charging stations. On September 28, Mastercard shares saw a 1% increase in value.
The SMART/LAB solution empowers charging station operators to seamlessly integrate a hybrid payment terminal utilizing open-loop technology into their existing charging station infrastructure or new installations. The purpose-built payment gateway, designed for plug-and-play integration, simplifies the setup process of the payment terminal.
Consequently, EV charging station operators can accept popular contactless payment and authorization methods while adhering to the new European Alternative Fuels Infrastructure Regulation requirements. They can also accommodate closed payment systems, including municipal utility charging cards and offerings from other electric mobility providers.
Fast-charging stations, accessible to the public and operating with a capacity of 50 kW or more, are mandated to provide at least one contactless payment method (debit or credit cards) starting from July 1 of the next year. EV drivers can use NFC technology to make secure and seamless contactless payments using Mastercard-branded debit or credit cards, potentially increasing revenues for the tech giant through its payment network.
Eligible EV charging stations will also accept cashless payments through digital wallets like Apple Pay and Google Pay, as well as charging and fleet cards from well-known providers.
This recent partnership underscores Mastercard’s commitment to providing enhanced convenience, flexibility, and secure payment options for EV drivers throughout Europe. It also underscores the company’s long-standing efforts to promote the widespread adoption of digital payments. The presence of a globally trusted company like MA, known for its digital offerings supported by robust fraud prevention services, may attract a broader customer base to utilize the newly launched solution.
SMART/LAB appears to be a fitting partner to complement Mastercard’s efforts, as it boasts a leading backend system responsible for authorizing and billing charging processes across Germany.
Furthermore, this recent collaboration appears to be well-timed for Mastercard, considering the booming EV market. Technological advancements, growing environmental awareness, and favorable government policies have led to increased EV adoption. According to MarketsandMarkets, the industry is expected to witness a compound annual growth rate (CAGR) of 13.7% between 2023 and 2030.
Over the past year, shares of Mastercard have gained 40.5%, outperforming the industry’s growth of 24%.
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