EV Charging Payments Are a Huge Problem

This week, Ford, Honda, GM, and others announced cutbacks to their EV rollout plans. The EV revolution is suffering growing pains due to many factors. In the United States and around the globe, electric vehicles (EVs), EV chargers, and all of the related technology grew organically out of the free market economy without much-needed standardization and nationwide planning. This caused a wide variety of EV adoption barriers that still exist today. Some of these barriers are being addressed, but a glaring example of one of the most significant barriers is payments at charging stations. Currently, this creates a need for EV drivers to install multiple EV charging apps on their smartphones. Payments are just one of the many problems with EV charging. For many stations, credit card payments are not accepted at the point of sale (POS).

Refueling gas vehicles is much easier

Drivers of gas-powered, internal combustion engine (ICE) vehicles are accustomed to an easy and fast refueling experience. Drivers pull up to the station and pay with a debit or credit card or cash. The only delay drivers experience may be long lines at the pump. This kind of convenience is sorely needed by EV drivers, who have yet to experience it due to a variety of reasons.

Tesla has the best EV charging ecosystem

On the Tesla app or the dashboard screen, a list of nearby Superchargers is available, providing reliable information on the availability and functionality of the stations. Experts attribute much of Tesla’s success to its control and ownership of the entire ecosystem, including the cars, chargers, payments, and all related data. If something breaks at the station, Tesla is responsible for its repair, removing all ambiguity about responsibility. One other reason for Tesla’s success is that they have a fantastic maintenance program for their network. 

In contrast, the public charging system for other non-Tesla networks involves many actors, like automakers, charging network operators, route-finding tools, and more. No one from this multitude has assumed the level of responsibility that Tesla has, and it remains uncertain whether anyone will.

Credit card readers do not exist on all EV charging stations

As the EV charging industry grew, companies were not required to include credit or debit card readers, with the exception of Electrify America. Companies followed the easiest and most cost-effective solution, which was to handle complete control of payments through their apps. A cash discount is offered at most gas stations, while most EV charging stations almost always require an app payment. EV charging payments cannot be completed with cash, except in rare cases.

A whole lot of EV charging apps exist

Many personal EV and professional fleet drivers have complained about needing to install dozens or more EV charging apps on their smartphones. This can result in an inconvenient and confusing experience for the user, who must juggle multiple apps, each with its unique interface, pricing structure, and payment methods. Furthermore, the need to install and manage several apps can take up valuable storage space on users’ devices and consume more data. This lack of a unified platform for charging services impedes the user experience, deterring prospective EV buyers and slowing the industry’s overall growth.

EV charging manufacturers have their own apps

Public EV charging stations feature EV charging infrastructure built by a wide variety of companies. Some leading companies in the United States are ABB, Siemens, Tritum, EVBox, Wallbox, Webasto, Eaton, and many more. All of these companies have their own EV charging apps.

CPOs also have their own EV charging apps

Electrical Vehicle Charge Point Operators (EV CPOs) own, operate, and manage the EV charging infrastructure they install. Their responsibilities extend beyond just installing and maintaining public and private charging stations. They handle the hardware and software systems that facilitate efficient management of these points. This includes apps for billing and real-time status updates. CPOs are typically regional, so as EV drivers cross state lines on long trips, the need to install more EV charging apps increases.

Automakers have their own EV charging apps

Original equipment manufacturers (OEMs) that produce EVs also have their own EV charging apps, or they have partnered with charging companies to use apps from those companies. One example is Rivian, which not only has its own app, but also its own charging network.

Bill Ferro, Founder, EVSession, said: “I have over a dozen apps on my phone for EV charging, station rating, trip planning, vehicle control, and even one for my home charging unit. It’s really an untenable situation. The solutions are one universal EV app, and credit card readers on every station.”

The solutions are one universal EV charging app, and credit card readers on every station

Since smartphones are now ubiquitous, and EV charging apps are expected to stay for a while, a way to manage the multitude of apps is sorely needed. EVinfo.net suggests one universal, open-source EV charging app. The open-source technology exists to allow one universal app that all drivers would download and then choose the companies they need from a menu inside that one app. Company apps would be given a framework for functionality, removing the barrier of users having to figure out different interfaces.

Credit card readers at every EV charging station would eliminate the barrier of the driver not having or not wanting to use the required app. Experts disagree on whether the government should mandate these solutions or if companies should get together and create the solutions through a professional agreement.

Joshua Goldman, VP of Mobility at Xendee, said: “The primary issues are ease and reliability of charging. The simplest solution is to plug in your car and it starts charging, like Tesla does today. Other Car makers are and will be catching on to this. With OCPP 2.0b it will be simple for any modern EV owner with NACS or CCS to have their payment information stored with the automaker or any of a number of CPO software companies, and regulation for NEVI and CARB public stations will require OCPP and Open Payment systems to ensure a seamless charge either by a tap credit card payment or a backend cloud connection. Unfortunately this will take time to work out, and those closed charging ecosystems like Chargepoint will lose favor to the ease of other systems.”

About OCPP

The Open Charge Point Protocol (OCPP), developed by the Open Charge Alliance (OCA), provides a universal solution for the communication between charging stations and charging station Management Systems (CSMS). Introduced in 2010, it was initially used exclusively in Western Europe. However, the release of OCPP 1.6 by OCA in 2015, which added support for smart charging, led to its global adoption. The protocol’s adaptability to evolving technological advancements in charging stations and electric vehicles has been instrumental in its widespread use. It supports both the configuration and monitoring of complex, high power fast chargers (up to 350 kW and beyond) and low-cost home charging stations. Despite the increased demand for security and support for complex chargers, OCPP maintains its usability for low-cost charging stations with constrained memory and processing power. Its open-standard, cost-free, and license-free nature makes it an effective de facto protocol in the electric charging industry.

There are many more barriers to EV adoption in addition to payments

A wide variety of problems with electric vehicle (EV) charging have been an obstacle to the EV revolution from the beginning. These include plug compatibility, charging speed, charging station reliability, the fact that charging locations are not evenly distributed, the lack of multi-family and curbside charging, and the fact that most EV models are more expensive than gas-powered vehicles.

The EV revolution continues to suffer from a lack of standardization

The most well-known example of a lack of standardization was the EV charging connector debate, which was resolved in 2023 as Tesla’s North American Charging Standard (NACS) gained dominance over the Combined Charging System (CCS). As a result of NACS winning this battle, EV chargers using CCS will be outfitted with NACS connectors as an option, allowing NACS-enabled vehicles an easier time with charging rather than using adapters. CCS connectors will need to be supported for many years before being completely phased out. Struggles with charging connector type remain a barrier in 2023, although it is resolving over time.

EV charging stations have a significant reliability problem

Numerous complaints from EV drivers surfaced as reports of non-operational charging stations around the country multiplied. In September 2023, the Biden-Harris administration recognized the growing number of EV chargers nationwide facing reliability problems. Applications were opened for the Electric Vehicle Charger Reliability and Accessibility Accelerator, providing up to $100 million in federal funding to repair and replace non-operational electric vehicle (EV) charging infrastructure nationwide. This is one of the EV adoption barriers that is now being addressed.

Charging speed is significantly slower than pumping gas

Public charging infrastructure plays a pivotal role in facilitating long-distance travel for electric vehicle (EV) owners. The network of public chargers is particularly designed for longer journeys. A prominent feature of this network is the rapid charging DCFC EV charging unit. With its high charging speed, it can replenish up to 80% of an EV’s battery in just 20-30 minutes. Drivers need to get used to refueling taking this amount of time, which is much more than the 5-minute average for gas vehicles. The term for EV drivers waiting for recharging is known as dwell time. Dwell time has spurred a whole industry of business-related opportunities to take advantage of monetizing the drivers’ stops at charging locations, such as coffee shops, restaurants, shopping malls, etc. When installing EV charging, dwell time near available merchants is a significant consideration.

Multi-family and curbside charging needs expansion

The scarcity of EV charging facilities for residents of multi-family units and curbside EV charging demonstrate the need for changes in the EV charging landscape. Homeowners enjoy convenience in charging their EVs, a convenience that is not shared by drivers who are not homeowners. This is discouraging EV adoption for those who dwell in multi-family units, or need curbside charging.

EV prices are dropping, EVs offer a superior total cost of ownership (TCO)

Buyers often perceive EVs as prohibitively expensive. With significant advancements in battery technology, electric vehicles can now deliver more mileage per charge than ever. Additionally, the cheaper fuel costs associated with electricity rather than gasoline result in considerable savings over time. Therefore, when considering the total cost of ownership, including purchase price, fuel costs, maintenance, and lifespan, electric vehicles are less expensive than their traditional ICE counterparts, over a 3 to 5 year span. This aspect broadens the appeal of EVs beyond the environmentally conscious to those seeking cost-effective and sustainable transportation solutions. A wider choice of available EV models continues to grow, addressing the problem of limited numbers of electric vehicle models available.

A surge in EV adoption predicted, beginning in January

One other aspect is the change to the $7500 federal EV tax credit and various state-based incentives.  The tax credit will become a “cash on the hood” point-of-sale credit at the dealership starting in Jan 2024, for eligible vehicles.  This has the potential to be a significant game changer for EV adoption.

Reducing the barriers to EV adoption

The fragmented nature of EV charging networks certainly creates a hurdle for users and poses a significant challenge to the broader acceptance of electric vehicles. Imagine having to subscribe to different fuel companies to fuel your gasoline car at different stations. It’s a tedious process that doesn’t fit with the convenience we associate with modern technology. This lack of standardization in the EV charging industry is very discouraging. For the electric vehicle market to flourish, there needs to be a universal charging station payment solution, a common platform that cuts across all charging networks, making the process as seamless and convenient as possible. One universal app and credit card readers on all of the stations are needed.

The barriers to EV adoption are mostly being addressed, with the exception of payments. The plug compatibility problem is working itself out as NACS gains dominance. Charging speed is improving as technology advances. Charging station reliability is being fixed with the help of federal funding. Charging locations currently need to be evenly distributed throughout the country, however more efforts are underway to change that, one example is the California Energy Commission (CEC)’s Rural Electric Vehicle (REV) program. The lack of multi-family and curbside charging is being addressed by companies such as Livingston Energy Group and itselectric.

EV models are dropping in price, so they will no longer be more expensive than gas-powered vehicles. This week, Nissan announced that it is planning a low-cost EV, and is moving forward with large-scale production of it. This will allow the company a market share advantage over competitors such as Ford, GM, and Honda, and others, who have made recent cutbacks to their EV plans. The EV revolution has slowed down for now, however those companies, such as Nissan, who are more forward-thinking will take this opportunity to build out their EV offerings, and become leaders in the space. This will give them an advantage over competitors as EVs move to mass adoption in the near future.