Seamless electric vehicle charging will soon be the norm
Hassle-free ‘Plug & Charge’ will soon become the future of electric vehicle charging. Plug & Charge method connects vehicles and charging stations automatically, making it the most seamless charging method. While consumers welcome the approach, interoperability issues stand in the way of further adoption.
No need to tap a card or use an app: Plug & Charge is a new standard that enables electric vehicle (EV) owners to connect their vehicles to charging stations and securely exchange information, including payment and authorization details. The vehicle itself holds the owner’s payment details – just like a digital wallet – and authenticates when it is plugged into a charging station.
EV owners are looking forward to innovations in the way they pay to charge their vehicles. According to a whitepaper from consultancy PaymentGenes, most consumers were anticipating physical debit or credit payments and Plug & Charge.
The study found that Plug & Charge is likely to be the dominant EV charging payment model in the 2030s. The reality now, however, is that it only makes up a small fraction of charging sessions, mostly because not all EVs and charging points support this method.
As of now, the vast majority of EV drivers in the Netherlands, for example, pay for charging using a charge card. That can be in the form of RFID-based cards that users tap on a terminal, or through tokens, both of which record transactions and later charge the user, usually at the end of the month.
In order for Plug & Charge to become more widespread, it needs to be embraced by both drivers and OEMs. This method of charging requires the entire ecosystem – from car to CPO to billing method – to be aligned and integrated with Plug & Charge standards.
Europe is home to a large number of public, high-power EV charging stations that are already equipped with Plug & Charge capabilities. The problem is that the vehicles lag behind: Right now, there are millions of EVs on the road that were not equipped with the technology when they left the factory.
There are around 3 million EVs enabled with Plug & Charge capabilities on the road in Europe currently. At the current rate of adoption (and considering the growing demand), it is estimated that by 2030, 100% of EVs will be equipped with it.
Indeed, EV manufacturers have been getting on board with Plug & Charge: Right now, manufacturers producing vehicles with this capability include Audi, BMW, Ford, Hyundai, Mercedes Benz, and Volkswagen, among others. Nissan and Scania are among a few manufacturers that are currently onboarding.
A legislative push from the European Union will also play a part in the further expansion of Plug & Charge. In 2023, the European Commission published a proposal for an expanded public-private charging ecosystem that would enable more interoperability between different charging networks.
“Plug & Charge represents a major leap forward for the EV charging experience – simplifying payments, improving security, and driving interoperability across the ecosystem,” said Bas van Donselaar, head of consulting at PaymentGenes.
“If you’re part of the EV ecosystem – whether as a fleet manager, OEM, charging network operator, or payment provider – it’s time to get ready for Plug & Charge. The road to seamless, secure EV charging is plugged in and charging ahead.”
