Flagship has observed a surge of interest in the B2B mobility space over the past year, driven by several factors: the growing popularity of EVs, the introduction of Visa Fleet 2.0, the lack of product differentiation amongst traditional providers paving the way for new entrants, and the rising adoption of embedded payments in verticalized SaaS and fleet management software.

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A Complex and Rapidly Evolving Sector

The mobility and transportation needs of corporate customers have always been more intricate than those of private drivers. Businesses often need a diverse fleet that includes passenger cars, as well as light commercial vehicles and trucks. Additionally, they might require specialized items such as fuel cards, telematics systems, fleet management software, and tax services. 

These multifaceted needs have led to the development of an advanced mobility payments ecosystem, featuring fuel and energy cards, financial solutions, and a range of mobility services (such as, field scheduling, driver and fuel management, and route planning). Other services are emerging and disrupting the B2B mobility sector; for example, autonomous vehicles, mobility operating systems, smart parking, and Mobility-as-a-Service.

B2B M0bility Providers are Diverse and Evolving 
 
B2B mobility providers play within a dynamic and sophisticated ecosystem that is rapidly evolving and expanding:

• Fuel retailers supply fuel and gift cards, along with value-added services (e.g., vehicle services, fleet management, and data services) though some product gaps remain.
• Auto Manufacturers (OEMs) provide leasing, vehicle services, and EV solutions. However, only a few OEMs excel in offering robust analytics, telematics, and assistance services.
• Leasing companies give customers the option to integrate various products and services into the leasing contract (e.g., tax services, EV solutions and consulting, and data services and software).
• Payment providers offer a bundle of services as one product: different types of cards, detailed reporting and analytics services, fraud management, expense management, and others depending on the geography and size of the fleet.
• Technology providers offer a range of services, such as fleet management software, data analytics, telematics and route planning, often bundled together. 
• Emerging providers, like those in parking, EV solutions, and AV solutions, are entering the market with innovative solutions that can be seamlessly integrated with other products (e.g., fuel card, telematics software, fuel retailers mobile app).

While payment providers have successfully expanded into close adjacencies and B2B payments, fuel retailers are still refining their offerings, often hindered by legacy tech and complex systems. On the other hand, auto manufacturers have teamed up with payment providers to start offering in-vehicle payments. Moreover, emerging mobility providers, characterized by diverse business models, segment focuses, geographies and technologies, are rapidly gaining market share. We observe several key trends poised to shape the future for the B2B mobility sector (EV adoption, spend management, embedded payments, integration of fuel and EV charging payments, integrated ecosystems).

• Increased EV adoption will need comprehensive solutions beyond just EV charging
• Integrated ecosystems through APIs to bring together providers across the value chain with an integration layer
• Embedded payments into verticalized SaaS and fleet management software
• Integration of fuel and EV charging payments will be key in the future
• Spend management for SMB, low-frequency, B2B use of personal vehicles, etc.

In such a rapidly evolving market, all major players (fuel retailers, OEMs, technology providers in particular) must be prepared to address and capitalize on the opportunities presented by new technologies and emerging trends.

Please do not hesitate to contact Erik Howell at Erik@FlagshipAP.com and Emilia Cavallini at  Emilia@FlagshipAP.com with comments or questions.