EU Regulators Anticipate Tech Evolution to Stay Ahead of Data Privacy Trends
German automaker Mercedes-Benz and Visa recently announced the rolling out of in-car payments technology, a move that is poised to usher in the next frontier of digital payments.
Read more: Why Mercedes Benz Is Building the Operating System for In-Car Payments
In an interview with PYMNTS discussing the deal, Hamid Zarghampour, chief strategist at the Swedish Transport Administration, said the collaboration not only aligns with developments in the connected car space, but adds one more option to the “many well-established methods of payment available today.”
Asked about concerns around the threat connected vehicles pose to customer data and privacy, Zarghampour expressed optimism in the ability of strong brands like Mercedes and Visa in safeguarding consumer data. “I’m sure Mercedes has calculated all those safety risks, and together with Visa, which has a strong track record of enabling safe transactions, it shouldn’t be a problem,” he told PYMNTS.
What is of primary concern, however, is how the collected data is going to be used, especially as an increasing number of consumers embrace connected devices and opt to — knowingly or unknowingly — share their data with companies.
“Can I trust a company to use my data to offer me tailored services or is there a risk of abuse in how they will use my data?” he asked.
Fortunately, he said clear rules and regulations that protect consumers in the case of abuse already exist, especially in Europe, where General Data Protection Regulation (GDPR) rules are strongly upheld.
“Sharing data is an important issue and, of course, there is a threat to it, but the rules are working well, and it’s going to get more safe and secure,” he remarked.
He added that contrary to popular opinion, regulators are not behind on technological innovation and are constantly developing new regulatory frameworks to handle evolving privacy and cybersecurity issues and enable safe data interactions across industries.
At the end of the day, Zarghampour said how a user chooses to share their data comes down to the trust they have in a brand: “I have been in the transport sector for many years now, and while I know that I can trust Mercedes with my data, my neighbor might not know that.”
Beyond trust, the benefits customers derive from connected vehicles, from predictive maintenance and repair to the ability to customize vehicle preferences and enhance their driving experience, is what will make the difference, he added.
And when it comes to areas where there are still gaps in connected-car data-sharing, he said “regulation will be there to fix it.”
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