Startup Verdeva/PayByCar has received a contract from the E-ZPass Group to offer consumers PayByCar—Driven by E-ZPass, a mobile payment option at participating convenience store/gasoline retailers that will leverage their existing transponders. A pilot test is scheduled in Massachusetts for the second quarter of this year. Consumers will link a credit, debit, or prepaid Visa, Mastercard, American Express, or Discover card to their PayByCar account for purchases at the pump and any items inside the site’s convenience store.
Verdeva says all PayByCar accounts will involve tokenized transactions. Proprietary Verdeva reader devices at the pump will connect to a vehicle’s transponder to initiate transactions. Security includes two-factor authentication to a user’s mobile phone through a text message, which can also be used to deliver a marketing message from the station’s owner. Authorization, clearing, and settlement of PayByCar transactions will be handled by the station’s existing acquirer. More details are available in The Nilson Report.