The banking and payments industry continues to be a hotbed of innovation owing to ever changing consumer expectations. The rapid technological developments in the areas of banking and payments that aim to offer seamless experience to consumers are now becoming even more vital for industry participants as competitors leverage new technologies such as artificial intelligence, Internet of Things, cybersecurity, and embedded finance as they compete to stay relevant and grow in the market. In the last three years alone, there have been over 92,000 patents filed and granted in the banking industry, according to GlobalData’s report on Internet of Things in Banking: in-vehicle payments.

However, not all innovations are equal and nor do they follow a constant upward trend. Instead, their evolution takes the form of an S-shaped curve that reflects their typical lifecycle from early emergence to accelerating adoption, before finally stabilising and reaching maturity.

Identifying where a particular innovation is on this journey, especially those that are in the emerging and accelerating stages, is essential for understanding their current level of adoption and the likely future trajectory and impact they will have.

60+ innovations will shape the banking industry

According to GlobalData’s Technology Foresights, which plots the S-curve for the banking industry using innovation intensity models built on over 195,000 patents, there are 60+ innovation areas that will shape the future of the industry.

Automated toll payments, payment actuated vending, and contactless card scanners are some of the accelerating innovation areas, where adoption has been steadily increasing. Among maturing innovation areas are near field communication (NFC) payments and contactless payments, which are now well established in the industry. 

Innovation S-curve for internet of things in the banking industry

In-vehicle payments is a key innovation area in internet of things

The in-vehicle payment solution is an electronic payment technology that enables individuals to make payments for goods and services from the vehicle itself eliminating the need for any additional payment devices. The payment solution allows drivers to effectively manage payment transactions, thereby eliminating operational inefficiencies at outlets such as fuel stations.

GlobalData’s analysis also uncovers the companies at the forefront of each innovation area and assesses the potential reach and impact of their patenting activity across different applications and geographies. According to GlobalData, there are 10+ companies, spanning technology vendors, established banking companies, and up-and-coming start-ups engaged in the development and application of in-vehicle payments.

Key players in in-vehicle payments – a disruptive innovation in the banking industry

‘Application diversity’ measures the number of different applications identified for each relevant patent and broadly splits companies into either ‘niche’ or ‘diversified’ innovators.

‘Geographic reach’ refers to the number of different countries each relevant patent is registered in and reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.

Patent volumes related to in-vehicle payments

Company Total patents (2010 - 2021) Premium intelligence on the world's largest companies
Headwater Research 191 Unlock company profile
Nuro 113 Unlock company profile
INRIX 83 Unlock company profile
Stream 57 Unlock company profile
Proxense 17 Unlock company profile
Mastercard 14 Unlock company profile
Hitachi 11 Unlock company profile
SoftBank Group 9 Unlock company profile
Samuel Garfield 9 Unlock company profile
Zwipe 8 Unlock company profile
Visa 7 Unlock company profile
Alphabet 7 Unlock company profile
Instrumentmail 6 Unlock company profile
Verizon Communications 6 Unlock company profile
Kapsch TrafficCom 5 Unlock company profile
Stryker 5 Unlock company profile
Samsung Group 5 Unlock company profile
Live Nation Entertainment 5 Unlock company profile

Source: GlobalData Patent Analytics

Headwater Research is one of the leading patent filers in in-vehicle payment services. Other key patent filers in the in-vehicle payment solutions include Nuro, INRIX, Stream, Proxense, and Mastercard.

In terms of application diversity, Verizon Communications leads the pack, while INRIX and Stryker stood in the second and third positions, respectively. By means of geographic reach, Samuel Garfield holds the top position, followed by Zwipe and Hitachi.

To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Internet of Things (IoT) in Banking.

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData’s Patent Analytics tracks patent filings and grants from official offices around the world. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.