How to create a payments strategy to accelerate EV adoption

As EV charging becomes more widespread in Singapore, customers want the flexibility to pay with a payment method that they know and trust. A flexible payments journey covers a range of potential scenarios including (but not limited to) using their mobile wallet, credit card, or local payment method, and paying with a subscription, in app, or with a QR code. 

Offering all possible payment methods and channels can be overwhelming for the customer, and complex for businesses to manage. EV charging and other mobility providers in Singapore should invest in understanding how their customers pay, and work with a fintech platform that can provide the right mix of payment methods and channels.

Pre-authorization is a payment feature where a temporary hold is placed on a specific amount on a credit or debit card. For EV charging providers, it means you can be certain that there are sufficient funds available in your customer’s account to make their purchase. 

However, since pre-auths generally reserve the estimated amount to recharge, the feature comes with a risk, too. Some customers may not have the full amount of funds available, and the transaction is declined, even if the customer doesn’t intend to use the full amount to charge. 

That’s where a partial authorization feature can help. As the name suggests, partial auths ensure that transactions are partially approved (within the limit of available funds), resulting in reduced declines due to insufficient funds.

After charging, the authorized amount is adjusted in real time to reflect the actual amount incurred, with no risk of the transaction amount going above the customer’s limit. 

Unified commerce ensures that data from all your channels and systems feed into one centralized platform for a more unified view of your customers and their payments data. The data enables EV charging and mobility providers to analyze customer journeys, and real-time payment behavior enables companies to tailor their offerings and optimize performance. A centralized payments platform can give EV charging and mobility providers access to valuable insights, such as authorization rates, risk trends, and payment preferences.

For instance, a mobility provider operating in Singapore can use this data to identify market-specific payment patterns, reduce friction, and improve the overall customer experience. By integrating payments data with user journey histories, enterprises can experiment with different pricing strategies and service offerings based on real-time feedback.

Network tokenization is a security technique that replaces sensitive payment information, such as a credit card number, with a non-sensitive reference called a network token. This token is used in place of card numbers and other sensitive information to keep real payment data safe during transactions, helping to drive down fraud.  

For EV charging and mobility providers, tokenization also improves the customer experience, since customers can authenticate their payment method once and reuse it without having to re-enter their details. Further, it ensures that customers can pay using their mobile wallets – like Apple Pay and Google Pay™ – without needing to register for an account with the mobility provider. Network tokens are updated automatically by card networks, meaning mobility providers can continue to process payments without interruptions, even if the user’s card details change.

Network tokenization offers several key benefits:

• No involuntary churn: Card details remain up to date, reducing the risk of payment failures due to expired cards.

• Increased revenue: Higher authorization rates from automatic card updates result in fewer false declines, maximizing potential transactions.

• Future-proof: Adopt tomorrow’s EMVCo-based token standard today, with no integration effort for you.

These benefits are especially important for companies that rely on fast onboarding processes, such as EV charging or ride-hailing services, where every extra step in the payment process can lead to higher drop-off rates.

For EV charging and mobility providers looking to expand into new markets, having a single payments platform is a big advantage. It simplifies the process of setting up payments in unfamiliar regions, and offers the ability to integrate local payment methods seamlessly. This reduces the need for extra development resources and lowers operational costs. 

Further, by consolidating reporting and payment processes into a single platform, mobility providers can focus on delivering exceptional services without the overhead of managing multiple payment providers. This approach allows businesses to enter new markets with confidence, knowing that their payments infrastructure is both scalable and adaptable.

The Singapore EV charging market is projected to reach US$651 million by 2030, while Malaysia’s EV market is projected to hit US$38 billion by 2029. As well as changing consumer preferences and new technologies, the growth of EVs and sustainable transportation is driven by national sustainability goals. Singapore’s Green Plan 2030 aims to build 60,000 charging points by 2030, with EVs playing a central role in reducing carbon emissions. Similarly, Malaysia has committed to achieving carbon neutrality by 2050. Seamless, secure, and flexible payments solutions that leverage payments data and technologies such as tokenization, will help EV charging and mobility providers accelerate into this growth. 

Adyen’s single platform supports a wide range of payment methods, leverages the latest in tokenization technology, and offers a smart fraud system that combines rule-based components with the latest in machine learning. Our platform ensures you will be able to deliver the optimal customer experience and reach the highest authorization rates whether you’re in one market, or expanding internationally.