Discover: Connecting commercial fleets via IoT
Jason Hanson, SVP of global business development and acceptance at Discover, spoke with Efma’s Boris Plantier about his company’s unique new partnership with Car IQ.
What led you to creating this partnership with Car IQ?
Discover is always looking for unique and exciting fintechs developing new mobility solutions and platforms. We were introduced to the CEO of Car IQ who shared a vision for a new payments gateway built for automotive. From there, Discover and Car IQ worked collaboratively to realize that vision and co-developed the technology that enables cars to transact directly over the Discover Global Network for payments.
Could you provide an overview of this connected automotive fleet payments solution?
Discover® and Car IQ partnered to launch the first payment network for vehicles and co-developed the technology that enables cars to transact directly over the Discover Global Network. Discover provides the payment processing services over the Discover Global Network using virtual prepaid and credit card services for Car IQ’s product, which enables vehicles to autonomously initiate and complete payments for services.
Car IQ developed a new and proprietary identification verification technology called “Know Your Machine™” (KYM) process. This technology prevents friendly fraud by enabling vehicles to autonomously validate their needs, authorize payment requests, and re-validate delivery. This rule-based architecture empowers fleet operators to set custom purchase controls ensuring all transactions are within fleet policy.
Who are your target customers?
Commercial fleets and service providers.
What is the main challenge/opportunity in developing this offer?
Today, nearly $650B is spent on vehicle services using credit cards, debit cards, and ACH where people have to perform and manage the transaction. Our partnership with Car IQ simplifies payments by enabling vehicles to connect directly to financial institutions. Our solution removes the need for human-operated payments. Human-centered payments can be flawed and can result in costly fraud. For example, billing disputes submitted by humans cannot verify the actual vehicle, verify the service needs of the vehicle or validate that the vehicle received the service paid. This solution shifts the security and fraud risk onto the fleet operator, merchant and Discover Global Network.
How do you envision this service developing over the next five years? What is your vision of mobility in the commercial fleet industry?
As mentioned, the future for IoT machines connecting and transacting looks bright but it will ultimately be driven by what makes the most sense for the consumer. We’re certainly keeping an eye on these other areas and ensuring we have the right technology in place to implement if that’s something our customers are demanding.