The road to seamless EV charging is paved with open-loop payments
With the number of electric vehicles in Europe projected to top 40 million by 2030, and the European Parliament recently authorizing a law banning sales of new internal combustion vehicles in the EU by 2035, e-mobility is on the cusp of a golden age. But a reliance on closed-loop payments among EV charge point operators (CPOs) could see many of them fall by the wayside.
Setting the pace for adoption of open-loop payments in EV charging
As of 1 July 2023, all new EV charge points in Germany must offer open-loop payments, allowing drivers to pay with debit and credit cards. Given the notorious inconvenience of closed-loop payments, it’s fair to assume that when an open-loop charge point appears, it will quickly draw business away from nearby closed-loop facilities.
If CPOs want to remain relevant, they must upgrade their existing infrastructure to offer open-loop payments.
And it’s in their long-term interest to do so. By adopting open-loop payments, CPOs encourage a steady supply of new customers, since car buyers are more likely to go electric if they know recharging is as easy as refuelling.
Deploying open-loop payments doesn’t have to be painful
Critics of open-loop payment adoption often point to the cost and complexity of upgrading existing hardware. However, with the right software solution, CPOs can implement contactless bank card payments (cEMV) with minimal outlay.
Advantages for EV drivers
- A transparent, straightforward, and secure payment experience
- Speed and convenience – pull up, tap your bank card, charge
- Less anxiety and time spent looking for the ‘right’ charge point
Advantages for CPOs
- Sustainable growth thanks to increased traffic and revenue
- Increased operating efficiencies and reduced upkeep costs
- Robust data exchanges and loyalty program deployment
Switchio develops a comprehensive platform for fast, easy deployment of cEMV payments at public charging stations. The solution provides the sleek digital payment experience EV drivers want.