Innovation

Discover, Car IQ launch automotive fleet payments solution

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August 26, 2020

Discover Financial Services and California-based financial technology startup, Car IQ, are partnering to create a payment platform for machine-initiated payments beginning with automotive fleets.

Fleet vehicles connected to the Car IQ platform will be able to pay for services autonomously through the Discover Global Network infrastructure, according to a press release.

Car IQ's touchless machine payment platform turns the vehicle into a payment mechanism enabling it to automatically initiate and complete payments for automotive services such as repairs, tolls, fuel, insurance, parking and more.

Once the service is complete, the vehicle generates a payment file for Discover via a virtual card transaction over the Discover Commercial Payments Network.

The collaboration will simplify payment management for any vehicle, according to the release. In addition to enabling payments, it has a regulatory and security element, creating a comprehensive banking and risk management solution specifically designed for vehicles.

"Discover is continually exploring new ways to connect cars and all types of IoT machines directly to the Discover Global Network," Bill Dulin, vice president of network solutions at Discover, said in the release. "Machine-initiated payments is an expanding frontier that will increase volume over our network and simplify the payment management and accounting processes for fleet customers. Car IQ's perspective on machine identity will support an emerging payment category in machine-to-machine or IoT payments, and coupled with the Discover payment and blockchain expertise, we are creating solutions with emerging technology that will redefine the customer's expectations."