Volvo and North Carolina Test In-Car Toll Payments Without Transponders

Drivers in North Carolina will soon be able to pay tolls directly from their car dashboards—no transponder required, reports Payments Dive. Volvo Car USA and the North Carolina Turnpike Authority (NCTA) are launching a “pay-by-car” pilot on November 20 that lets up to 100 Volvo drivers cover tolls using embedded payment technology in the vehicle’s Google infotainment system.

Drivers simply enter a tokenized payment card, and tolls are automatically paid as the car passes through. Mastercard handles payment processing, while Microsoft, Red Hat, and Cognizant support the project.

The system uses the car’s geolocation and identity instead of physical sensors or gantries, which could save millions in toll infrastructure costs.“This car knows who it is and where it is,” said NCTA Executive Director J.J. Eden. “In-car payments simplify operations and free up funds for better highways.”

Volvo’s Jim Nichols said the app will be open to other automakers using Google systems—like Ford, GM, Honda, and Nissan—to ensure consistency and scalability.

While this pilot focuses on tolling, the same system could soon handle payments at parking lots, car washes, and even drive-thrus.Mastercard envisions an AI-powered future where your car can order and pay for coffee ahead of arrival.

“You just pull up—your car has already taken care of the order and the payment,” said Mastercard’s Chapin Flynn.

In-car payments could transform vehicles into secure digital wallets on wheels—reducing friction, cutting costs, and redefining how we interact with the world on the move.