A significant obstacle has emerged as Europe rushes towards the era of electric vehicles: the unpleasant paying experience at charging stations. On the other hand, new regulations throughout the continent are expected to change this.

In order to promote the use of electric vehicles, the EU introduced the Alternative Fuels Infrastructure Regulation (AFIR), which required all charging stations inside EU member states to provide more practical payment methods.

It's time for charging station operators to reconsider their payment infrastructure because new EU regulations are scheduled to go into effect on April 13, 2024, and the UK is currently considering enacting its own laws.

More information is provided by Fiserv's Head of Enterprise and Digital Commerce, Peter O'Halloran.

The difficulty with payments for EV drivers

Customers are choosing more and more to charge their vehicles at stores and supermarkets that have electric vehicle charging stations in their parking lots. Convenience—being able to charge while shopping—is the lure. Drivers, however, have taken issue with the way that payments are now made at EV charging stations.

"Drivers are required to register for and utilize a range of apps for each charging point provider to manage their payments, depending on where they want to charge that day,” claims O'Halloran. "These closed-loop payment options force drivers to commit to higher prices and subscriptions in addition to adding friction to the car charging process."

The regulator's new charging point payment policy was largely motivated by this.

EU and UK payment policies have changed

To standardize the consumer experience, the new EV charging payment regulations stated in the AFIR require more practical and recognizable card and contactless payment methods.

To standardize the consumer experience, the new EV charging payment regulations stated in the AFIR require more practical and recognizable card and contactless payment methods.

He continues, "Payment with cards or contactless devices must be simple for owners of electric vehicles, and most importantly, it must not require a subscription." The goal is to enable drivers to use convenient, barrier-free payment methods that they are accustomed to. Although only EU members are subject to these regulations, others are expected to abide by them.

In July of last year, the UK published its own draft law. In the event that the bill is passed, charging station owners would also have to make sure that, within a year of its implementation, customers may make payments using contactless means.

According to O'Halloran, "this presents a big project for any retailer that is hosting a charging point." "A newly constructed store is required by European regulation to provide an EV charging point if there are more than ten parking spaces."

If an existing branch has more than 30 parking spaces, it will also need to be retrofitted starting in 2026.

According to O'Halloran, "payment providers have a crucial role here to help retailers capitalize on the opportunity ahead while also easing the burden on them."

How value may be added by payment providers

Retailers are trying to streamline the customer payment experience while navigating regulatory and technological limitations. They are searching for solutions that are simple to deploy.

Retailers can gain a competitive edge and monetize their parking space by providing a superior payment experience at charging terminals.

O'Halloran says, "Those who offer the simplest experience and a wide choice of payment options can draw in more business by increasing dwell time in-store and attracting new customers."

One other important topic under investigation is loyalty programs. Retailers can enhance customer loyalty by providing EV drivers with a price advantage through credits or discounts when they charge and make purchases in-store during their visit.

The importance that EV charging payments play for stores in the pursuit of greater sales and customer loyalty can be effectively elevated, according to O'Halloran, by payment providers who can offer readily integrated, user-friendly solutions.