What is pay-in-car? | Trade Standard News



Thanks to FASTag, we no longer need to carry money or cards with us to pay tolls on the motorways. It is the first and most successful example of in-vehicle payment service in India.


The next step now is to enable in-car payments for many other services such as fuel, parking, maintenance, insurance, etc. Before discussing its pros and cons, let’s understand how the pay-in-car system works.





The easiest and most common way to activate a car payment system is to use radio frequency identification (RFID) tags.


For the uninitiated, the RFID tag is a short-range wireless system that uses radio waves to communicate. These tags store a range of information, read by a specific device called a reader. The beauty of the RFID tag is that it requires no power or internet connection to operate and can send data over the air.


The other method to implement an in-vehicle payment system is to use an integrated Bluetooth Low Energy (BLE) module. These modules are expensive and require an operating unit to operate.


But they can transmit data at a higher range, which, in turn, reduces the risk of payment failure. Unlike embedded systems such as RFID tags, this embedded system requires energy to operate.


Another way to implement a pay-in-car system is to use application programming interfaces (APIs). This is an advanced and the most secure way among the methods available to enable in-car payments, but it is expensive and complicated due to hardware and software compatibility issues. It requires both power and an internet connection to operate.


When it comes to the challenges of in-vehicle payment systems, security is paramount as your personal and financial information can be compromised due to a cyberattack no matter which system is used – embedded like RFID tags or embedded like BLE module /API – – to enable payments.


Connectivity is another challenge, especially in embedded systems, as there is still a large geographical area in the country where the internet has yet to reach.


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