The rapid adoption of electric vehicles (EVs) is transforming the global transportation landscape. Many governments worldwide are rolling out ambitious policies to reduce carbon emissions, automakers are pushing the boundaries of EV design and performance, and consumers are becoming increasingly environmentally conscious. Yet, beneath this extraordinary growth, a key hurdle persists and must be addressed to enable sustainable growth in the EV market: the complexity and inconsistency of EV Charging payments, often leading to “payment anxiety” for drivers.
Payment Anxiety in the EV Landscape
For many EV drivers, the growing accessibility to public charging stations is overshadowed by the inconsistent and convoluted payment methods required to use them. Unlike the familiar simplicity of refuelling at a petrol station, where a credit card payment suffices, EV Charging can demand a range of apps, accounts, and memberships. It’s an experience that too often leaves drivers frustrated, discouraging wider EV adoption.
Why EV Charging Payments Must Evolve
The demand for establishing streamlined payment solutions is threefold.
First, the public expects a frictionless experience that mirrors other facets of modern commerce. Whether refuelling with a credit card, buying a coffee on a smartphone or tapping a contactless card on public transport, simplicity has become non-negotiable.
Second, tackling inconsistent payment models is critical to trust within the EV community. The lack of standardisation across charging networks risks alienating potential EV adopters, who may perceive the system as unnecessarily complicated.
Finally, as EV adoption surges and infrastructure expands, scalability must remain central. Payment systems need to be future-proof, capable of integrating evolving payment methods, handling higher demand, and supporting a broader consumer base without buckling under strain.
All of this begs a question that must be answered sooner rather than later by CPOs, and solution providers alike: How do we engineer a payment ecosystem that is intuitive, scalable, and inclusive?
The Key Components of Card-based Payments
There are three main components in a card-based payment scheme. In the EV Charging industry, all these components are contributing to making payments possible.
- Acceptance solutions – The Acceptance solutions are hardware and software components in charge of “Accepting” card payments. There are two kinds of acceptance: card-present, when the cardholder presents their physical credit or debit card to the business at the point of sale and card-not-present when the card holder provides their credit or debit card information over phone, mail or Internet.
- Gateways – Acting as middlemen, gateways are software solutions that sit behind payment terminals and eCommerce pages. They are in charge of managing the life cycle of the payment terminals (Card-present gateway) as well as managing the 1st steps of eCommerce payment transactions (eCommerce gateway).
- Acquirers – These are financial institutions responsible for processing card payment transactions on behalf of the merchants. They route transactions towards the payment schemes like VISA or Mastercard for example. They ensure that the funds are credited into the merchant’s (CPO’s) account and debited from the card holder.
Solutions overview in EV Payment Systems
1. Subscription Model with fobs (eCommerce)
Today, that’s by far the most used payment method by EV Drivers. Roughly 80% of the charges in Europe are paid like this. Drivers get a fob from their preferred CPO (one or several) or from an eMSP, and associate this fob to an account where they enter their credit or debit card details for payment. Payments are made for each charge or on a monthly basis just as for Netflix or Spotify. This is defined as eCommerce payment. QR-Code “payment” also fits into this category. Static or dynamic QR-Codes are simply a way to routing the card holder towards an App or a web site.
2. Card payment (Contact / Contactless proximity payment)
The integration of Credit and Debit card readers at charging stations is growing. By eliminating the need for additional apps or subscriptions, card payment mimics the petrol station experience, making it user-friendly for EV newcomers. A UK regulation requires that all new public charge points 8kW and above deployed after 24 November 2024 and all public charge points of 50kW and above must offer contactless payment either per public charge point or per charging site. Similar regulation called AFIR has been issue by the EU Commission.
3. Account-to-account based payments
Account-to-Account based payment is a payment method not related to card schemes. It’s based on wire transfer and is getting more and more popular in Europe through the deployment of WERO. It has not yet emerged as a payment method in EV Charging.
Mobile wallets, such as Apple Pay and Google Pay, are being adopted as viable payment options for EV chargers. They can be considered as payment methods, but they are based on credit or debit cards, emulated on Smartphones.
Plug & Charge is not a payment method. Plug & Charge enables automated communication and payment processes between the Electric Vehicle and the charging station without any need external identification such as a fob / card etc… The payment method remains a debit or credit card that is associated to the driver’s account.
Improving the User Experience and Ensuring Security
For drivers, this intricate backend process must be entirely invisible. Their priority is convenience. Drivers expect to pay in the quickest and easiest way available, whether through a contactless card, an app, or other digital methods. But this expectation poses several challenges:
1. Simplified Payments in Outdoor Environments
EV charging often occurs outdoors, where weather conditions can complicate interactions with mobile apps or payment terminals. Entering card details in the rain or under bright sunlight can frustrate users, leading to dissatisfaction. Opting for methods like contact or contactless terminals, pre-saved payment details in Apps, can streamline the experience.
2. Reliability is Key
Charging stops often coincide with a driver’s travel schedule, so any delay in payments due to faulty terminals or unreliable Apps is unacceptable. Payment systems must be robust, ensuring uninterrupted transactions regardless of time or location.
3. The Importance of Security
Given the increasing digitalisation of EV payments, safeguarding user data is paramount. EV Charging systems must comply with rigorous industry standards like PCI DSS (Payment Card Industry Data Security Standard) and GDPR (General Data Protection Regulation) to protect personal and financial details. A lack of adherence to these frameworks risks user trust and could lead to damaging reputational and financial consequences. The AFIR regulation sets crucial interoperability and security requirements for charging stations, ensuring that all electric vehicles can communicate with any compliant charging point through standardized protocols like ISO 15118. Additionally, it mandates security measures based on ISO/SAE 16883 to protect user data during communications, while promoting advanced technologies, such as 5G, to enhance efficiency and reliability.
Balancing Efficiency, Security, and Convenience
For CPOs, the challenge is to ensure a seamless integration of these complex components while offering a frictionless experience to drivers.
Below are some of the key initiatives to help streamline this ecosystem:
- Consolidate Providers – Partnering with a full-stack payment provider that combines the roles of PSPs, gateways, and acquirers can reduce redundancy and enhance efficiency.
- Focus on Driver Convenience – Utilise user-friendly interfaces like one-click payments on Apps or contactless solutions at terminals.
- Invest in Cutting-Edge Security – Advanced encryption technologies, two-factor authentication, and regular security audits can fortify systems to meet compliance standards.
As EV adoption accelerates globally, an optimised payment ecosystem becomes indispensable for enhancing customer satisfaction and supporting the scaling of charging infrastructure. Charge Point Operators, in collaboration with payment providers, must take a proactive approach to simplifying transactions, prioritising both convenience and security.
