Dive Brief:
- Kum & Go will start accepting fleet fueling payments without the use of a credit card at more than 400 locations across the Midwest this fall.
- Kum & Go has launched the program with Car IQ, whose proprietary technology lets fleet vehicles connect directly to Kum & Go’s fuel pumps, eliminating the need to swipe a credit card, enter a PIN or add an odometer reading.
- As credit card fraud at the pump continues to worry fuel retailers consumers, Kum & Go’s frictionless program could be a sign of things to come not just for fleet payments, but for general gas trips as well.
Dive Insight:
Launching frictionless fleet pay continues Kum & Go’s efforts to become more inclusive for its customers, whether it be for the fuel they need or how they pay for it, said Jacob Maass, commercial fuel manager for Kum & Go, in a press release.
For fleet drivers that stop to fill up at Kum & Go stations, Car IQ validates their vehicle using the same technology retailers utilize for mobile payments, approves the source of funds and unlocks the pump without entering a credit card. Once drivers are done fueling, Car IQ enables the vehicle to pay for gas and verify the fuel was received. The payment receipt is then sent to the driver and fleet operator.
Sterling Pratz, Car IQ’s CEO, said Kum & Go was interested in the opportunity to gather additional data on fleet drivers and eventually push rewards and other loyalty offers to them. Pratz said that around 65% of fleet drivers go into convenience stores when they stop to fuel up, making them a prime target for retailers like Kum & Go to deepen their engagement.
Pratz said Car IQ is working with Kum & Go on being able to send rewards to drivers within their fleet management apps. Car IQ, which also streamlines payment for vehicle-based activities like repairs, parking and road tolls, hopes to eventually enable payment inside Kum & Go stores using its vehicle-recognition system. It can also enable payment for car washes run by c-store operators.
As fleet owners look for more ways to boost their driver ranks, Pratz said they’re looking at programs that can simplify payments, cut down on fraud and offer ways to accumulate rewards while they work.
“The fleet guys are looking for more ways to incentivize and complement the drivers,” he said.
This isn’t Car IQ’s first integration in the c-store industry. In July, the company brought its frictionless fleet payments to nearly 5,000 Sunoco-operated sites nationwide.
Credit card fraud at the pump is a major worry among consumers, with 83% saying they are concerned about it, according to a 2022 report from Bluedot. In many cases, the majority of consumers prefer to skip swiping or inserting their credit card when paying at the pump entirely, the report said.
Kum & Go’s and Sunoco’s moves to frictionless fleet payments may signal an operational shift to come in the fueling industry — not just for fleet drivers, but for regular gas trips, too.
