By Yair Nechmad, CEO & Co-founder of Nayax, the leading cashless solution provider
Electric vehicle adoption is growing, but not as fast as many policymakers would like. While ambitious infrastructure bills in the US and bans on the sale of new CO2-emitting cars in the European Union starting in 2035 are trying to push wider adoption, it is still lagging behind. This is where technology comes in, and why it is important to invest in EV technology in order to meet the goals set out by governing bodies around the world.
While there is certainly a global government push towards EV vehicles, the U.S. currently lacks the appropriate charging infrastructure to make consumers feel more comfortable converting. According to Gartner, shipments of electric cars are estimated to increase 19% in 2024, to a total of 17.9 million units. Given the strong government push towards EVs and anticipated consumer uptick, now is the time for investors to start thinking about how they can get involved in the space.
Investing in EV charging technology will help us build more robust and long-lasting infrastructure, including fast-charging stations at commercial areas throughout the country. The U.S.’s latest Infrastructure Investment and Jobs Act has set aside $1.5 billion to help states build and expand their EV charging networks, highlighting the need for investment in chargers and charging technology. Creating a network of charging stations is no small feat, and the following needs to be taken into consideration: equal distribution of access to public charging stations in both urban and rural areas and a seamless payment solution for these public chargers.
These are two of the biggest impediments to EV adoption. Lack of infrastructure, especially in more remote areas, creates range anxiety and prevents many people who otherwise would purchase EVs from taking the leap. Not being sure when you can next charge your phone can be worrisome, so just imagine how people would feel if they got stranded with no EV charging station nearby. Without substantial investment in infrastructure: both installing accessible charging stations and rectifying underlying issues with the electrical grid, there is no way to combat this impediment.
That being said, installing charging stations will only help reach the widest possible audience if the charging stations that are installed have embedded open cashless payment systems. Recent research by Mastercard showed that 65% of drivers in the EU would prefer to use a physical debit or credit card. Open cashless payment systems make EV charging as easy as getting gas. With a simple tap and go payment experience, which empowers EV drivers to choose the way they pay, whether it be via debit or credit card, prepaid card, QR code, or digital wallet, EV adoption will grow substantially. The added convenience of seamless payments, and the security of knowing that you can pay at any EV charging station without having to download a proprietary app or to pay a monthly membership fee simplifies the process and removes another obstacle to EV adoption.
Research suggests that by 2030, the proportion of electric vehicles sold will be 60% of total car sales. Investing in EV infrastructure, both in charging stations with embedded open cashless payment systems and in the electrical grid, are crucial for the United States if they want to meet their goals. The projected industry growth should be enough to pique any smart investor’s interest. As investment in the space continues to increase, this will not only encourage EV adoption, but will be the first big step that the US can take toward net zero carbon emissions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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