Car IQ Teams Up with ExxonMobil for Contactless Gas Payments
ExxonMobil Corp. has expanded its contactless fueling options by joining the Car IQ Inc. payment network for fleet vehicles. Car IQ allows fleet companies to use its mobile payment platform to more efficiently buy fuel and other services.
Car IQ Pay, which works with Visa Fleet, is accepted at more than 12,000 Exxon and Mobil stations. Its services focus on fueling large and small truck fleets, available at more than 8,200 locations with retail diesel pumps and another 800 with commercial truck diesel pumps.
ExxonMobil has been growing within this space for some time now. In 2020, the company announced that it had introduced a dual function pay option via NFC (near field communication) or a QR code. That technology allows a driver to transact fuel payments through a smartphone.
ExxonMobil also teamed up with Fiserv to initiate gasoline payments through Alexa and Amazon Pay. For vehicles equipped with Alexa, drivers can give voice commands to select a gas station pump and authorize a payment. The “Alexa, pay for gas” program went live in September 2020. In addition, Android and iOS users can scan a QR code or tap their device to the Google Pay tag at ExxonMobil stations.
Challenges for Car IQ
The alliance with Car IQ Pay is a logical extension of this strategy. With Car IQ Pay, fleet members can connect their vehicle directly to the pump without needing a credit card, PIN number or vehicle odometer reading. As the Car IQ website describes, the payment app uses vehicle data to create a unique ID that connects directly to the merchant to initiate transactions. The Car IQ wallet adds vehicle data to the transaction, enabling merchants to provide real-time offers and personalized rewards for fleet operators and drivers.
Analysts say that while Car IQ has done a good job of expanding its network, it still has a long way to go to compete with major credit card issuers.
“In order to compete with the major providers, Car IQ will need to continue to expand its acceptance network,” said Ben Danner, Senior Analyst of Credit & Commercial at Javelin Strategy & Research. “Bringing on titans like ExxonMobil is a great addition and will give drivers the added flexibility of contactless payments with a big opportunity to reduce fraud and disputes. However, traditional fleet cards have significant rewards perks and rebates, which may be enough to keep fleets from ditching their plastic cards.”