Mainstream automotive brands join push for in-car microtransactions

Some of the world’s biggest car makers are firing up new technology to make your life easier all in the pursuit of extra cash.

Nissan, Ford and Volkswagen are gearing up for a new world of in-car payments and services, joining luxury brands such as BMW, Mercedes-Benz and Tesla in the pursuit of extra cash.

BMW came under fire in July by announcing that “digital after-sales” in new models would allow drivers to pay to “access the vehicle’s existing hardware and software, such as certain comfort functions or driver assistance systems”.

Rather than paying upfront for active high-beam headlights or active cruise control, BMW said some owners can trial the services for a month before paying a subscription fee for continued access.

BMW wants drivers to pay to access features within their cars.

Microtransactions give car makers a new income stream, one stretching beyond the original buyer to subsequent owners. Mercedes flagged a similar idea in 2018, telling Australian reporters customers might be able to pay to unlock features such as heated seats.

The German brand has also partnered with third-party companies such as Yelp in the US to direct hungry drivers toward preferred restaurants.

Tesla offered a bolder example when the original Model S launched, artificially limiting the car’s battery capacity unless owners paid more to unlock its full potential.

The electric vehicle specialist currently charges Australian customers $9.99 per month to access live traffic information, satellite map imagery, an internet browser and music streaming services such as Spotify.

European examples of Volkswagen’s eighth-generation Golf already allow customers to buy features on demand such as in-car Wi-Fi and active cruise control. The car arrives in Australia next year.

Volkswagen’s next-gen Golf allows buyers to add features after they purchase a car.

Speaking with Australian reporters this week, Ford Australia representatives said a new “FordPass” connectivity suite would eventually allow the blue oval to provide subscription services in new cars. The system initially allows owners of car such as the 2021 Ford Ranger to check fuel levels, track a car’s whereabouts or remotely lock or unlock their car using an app.

FordPass gives owners access to live traffic data for three years, but the brand hasn’t decided whether to charge after that. US customers with FordPass can use their car to pay for minor transactions such as coffee or fuel, but that isn’t available in Australia yet.

Ford is introducing a new smartphone app for the Ranger ute.

Christine Wagner, mobility and connectivity manager for Ford Australia, said if there was demand for pay-to-play updates or services, “we would certainly look at offering those”.

Chris Clarke, connectivity user experience lead for the brand, said the changes were “laying down the groundwork” for what buyers expect in the future.

Similarly, Nissan unveiled its new Ariya electric car this week.

The striking SUV features Amazon’s Alexa virtual assistant in the dashboard, and the ability to upgrade features in the future.

Nissan’s senior vice president for product planning, Ivan Espinosa, said there are “attributes of the car to be upgraded” when it goes on sale.

Nissan’s Ariya electric SUV features upgradeable infotainment features.

“We have the ability to upgrade and do specific things around powertrain and braking management, on the graphic user interface, navigation and graphic user interfaces that we have,” he said.

“You could expect some of those services, when we start putting them out there … they could be subscription based.

“This is not a no for now. It’s something that we are looking at.”

Espinosa said “many of the technologies in the Nissan Aria today will be incorporated into other cars,” suggesting next-gen connectivity could also be on the way for conventional models such as the Navara and X-Trail.