Easing EV driver payment anxiety

Paythru’s Keith Brown discusses the need for familiarity and simplicity in EV charging payments

There are many viable ways to make cashless payments. But, while it’s always good to have options, we believe that simplifying the payment process is the best approach for electric vehicle (EV) charging. Some 82% of EV drivers say there are already too many apps, according to the RAC Report on Motoring 2023.

Paythru’s Overcoming Payment Anxiety survey found that only 13% of respondents use a single payment option 100% of the time. It seems unlikely this is out of choice.

As surveys show, most EV drivers prefer simple payment methods they are familiar with at the petrol pump, such as the ability to pay contactlessly by tapping their debit or credit card.

There is no harm in launching new options – as long as they are options, not requirements, and are offered on top of simple and transparent card payments. After all, people have become accustomed to smooth transactions – whether at petrol pumps, shopping online, or buying lunch on an aeroplane at 30,000 feet. They expect a fast and frictionless experience.

The success of online retailers like Amazon illustrates how frictionless payments can enhance customer satisfaction. Features like single-click purchases and instant confirmation demonstrate that payment innovations which simplify the payment process see widespread adoption. Furthermore, because consumers tend to prefer familiar payment methods, introducing new options can be challenging. For instance, when mobile wallets first emerged in 2011 with services like Google Wallet, they required users to have special phones equipped with NFC (Near Field Communications) technology, stores to upgrade their payment terminals, and everyone to navigate complex setup processes. While some early adopters were eager to try paying with their phones, most people preferred the convenience of simply swiping a card.

The challenge wasn’t that people couldn’t pay with their phones; rather, using a phone wasn’t really any faster or simpler than using a credit card. Everything changed in 2014 with the introduction of Apple Pay. Apple streamlined the whole process with fingerprint logins, integrating it with apps that people already used, and making sure it worked at a wide range of payment terminals.

As an industry, we should learn from these events and consider how to provide the best possible user experience. In addition to simplifying the payment process, we should address some of the real problems that users currently face. Right now the big one is pre-authorisation. Four out of five drivers report experiencing at least one issue with it, including being unclear about what they were committing to, and multiple pre-authorisation fees on their card for a single charge. A recent investigation by The Times indicated that some charging networks deduct upfront payments of up to £80, even for a short charge costing £5 or less. In our survey, nearly half of the respondents had waited more than a day for a pre-authorisation fee to be refunded – and some waited weeks. Solving that would be a good use of the industry’s time.

Things may not change without business drivers, of course. So it is also incumbent on parking operators – from councils to supermarkets – to ask: ‘What do people who leave their cars in my car park actually want?’ And then ask their EV charging partners to deliver that desired experience.

Keith Brown is founder and managing director of Paythru
paythru.com