JJ Eden, executive director of North Carolina Turnpike, argues that by integrating AI-driven telematics directly with payment infrastructure, we can eliminate costly roadside equipment, streamline toll collection, and deliver seamless, real-time transactions. But will the toll sector embrace this interoperable future, or cling to legacy systems built for a different era?
Telematic solutions are now ubiquitous, including vehicle fleet management, which enables tracking of vehicle movements, optimization of routes, monitoring of vehicle speeds, provision of real-time crash notifications, and remote diagnosis of vehicle issues.
Vehicles are becoming more intelligent and more connected natively through in-vehicle software or driver-assisted applications, enabling all businesses to manage fleets more efficiently in near real-time, which effectively reduces delays, provides safer fleets, and maximizes a company’s bottom line.
However, telematics is more about collecting behavioral information and driver preferences than it is about providing information for businesses to improve transportation systems. In the past year, with the increased use of AI we have seen a convergence of telematic products being developed for a broader range of applications, including accident prevention. Instead of just reporting what happened, telematic solutions can analyze driver behavior, vehicle conditions, and operations to predict situations that may lead to an accident.
Similar to safety use cases, the use of AI enables fleets to identify other friction points in transportation, like the payment of tolls or diversions around major congestion points. By using AI to determine driver preferences, route history, and other vehicle data, this data could help telematics become the next in-vehicle payment solutions for the transportation industry, utilizing technology within the vehicles, and allowing toll operators to reduce or even eliminate millions of dollars in roadside equipment costs. By connecting vehicles directly to payment systems, telematics can minimize friction and administrative expenses needed for billing or invoicing and allow for near real-time payments to the toll operator for all customers. These customers will not need a toll account and will be able to utilize existing in-vehicle connectivity to pay for different services including insurance, fleet management, parking and even aftermarket infotainment apps. Toll payments will be collected from the vehicle for any designated priced facility.
Imagine a telematic system that has a simple interface to vehicle manufacturer information, insurance, Department of Motor Vehicle information, driver demographics, behaviors and driving preferences including favorite destination on time every time; adding the toll payment is just one more interface and could eliminate reliance on roadside infrastructure and potentially reduce the need for large call centers as payments will be made in real time and no invoices are required while providing safety and traveler information to the driver using their existing preferred applications.
JJ Eden
“By connecting vehicles directly to payment systems, telematics can minimize friction and administrative expense”
Drivers would only need to manage a small number of their preferred payment methods across various locations, resulting in less confusion and friction in the payment process, as well as an increase in payment rates, as payments could be collected in real time without expensive invoice and billing systems.
So, the real question is: Should the toll industry’s priorities continue to be expanding its closed, single-purpose toll systems to be interoperable within the toll industry, or should it focus on being interoperable with existing telematic platforms that connect across multiple vertical markets? This could potentially eliminating the need for single-purpose toll systems and making everyone a customer using their payment method of choice.
Tom has edited Traffic Technology International (TTi) magazine and its Traffic Technology Today website since May 2014. During his time at the title, he has interviewed some of the top transportation chiefs at public agencies around the world as well as CEOs of leading multinationals and ground-breaking start-ups. Tom's earlier career saw him working on some the UK's leading consumer magazine titles. He has a law degree from the London School of Economics (LSE).
