Fragmented forecourts podcast: Building unified payments

In this episode of Fragmented Forecourts, Nathan Jefferson welcomes Chris Dickey from Accenture and Victor Padee, CRO at Aevi, to discuss the complexities of fuel retail payments and the journey toward a unified payments estate. The conversation explores why modernization feels risky, the cost of fragmentation, and practical steps for retailers to start transforming their payment ecosystems.

Listen to the podcast on YouTube now

Why modernization matters 

Fuel and convenience retail has remained largely unchanged for decades. While innovations like pay at pump emerged years ago, the overall customer experience is still fragmented and outdated. Chris Dickey points out that the industry is “waiting for its Uber moment,” a breakthrough that redefines how customers interact with forecourts.

The challenge lies in the complexity of operations. Retailers manage multiple customer types (consumers, fleets, truckers), diverse channels (forecourt, car wash, EV chargers, in store), and thousands of sites under different ownership models. This complexity translates into a tangled technology stack that is hardwired and difficult to modernize.

The cost of fragmentation 

Fragmentation is not just inconvenient; it is expensive. Chris explains that the main cost is innovation. Making even one change often requires a multi-year transformation costing billions. There are also operational costs, such as specialized teams needed to fix issues across a complex value chain. Downtime adds another layer of expense because a single site outage can result in lost customers and revenue.

Victor adds that payment stacks are often built from multiple systems that do not communicate. This makes introducing loyalty programs or omnichannel experiences nearly impossible. Unified commerce has been a buzzword since 2014, but technical challenges have prevented widespread adoption.

Missed opportunities

One striking statistic: fuel and convenience retailers fail to identify customers in 60 percent of visits, despite heavy investment in loyalty programs. In the U.S., major retailers offer discounts for loyalty sign ups, yet most customers do not engage. Even when customers enter loyalty details at the pump, they rarely do so in store, leaving retailers blind to full customer behavior.

This lack of identification limits personalization and loyalty driven experiences. Victor notes that without connected systems, retailers cannot offer tailored promotions or seamless journeys. For example, a customer who spends $100 on fuel could be offered a coffee discount, but disconnected systems make this impossible.

Consumer perspective

Nathan raises an important point: many consumers choose fuel stations based on convenience, not loyalty. Chris explains that loyalty programs aim to change this by offering savings and personalized offers. Price sensitivity remains high, especially as commuting increases post pandemic. Promotions like free coffee or bundled offers can influence behavior, but only if retailers can identify customers consistently. 

Victor argues that poor experiences contribute to consumer indifference. If systems worked seamlessly, enabling pay at pump, integrated car wash, and frictionless in store purchases, customers might choose stations based on experience rather than proximity.

The future forecourt

Looking ahead five years, Chris envisions a fully connected forecourt integrated with navigation apps and vehicle telemetrics. This would allow personalized routing, automatic identification, and pre prepared food delivered to the pump. AI could further enhance personalization by learning driving habits and preferences. 

Victor offers a pragmatic view: before futuristic solutions, retailers should focus on basics like reliable pay at pump and integrated services. He imagines a frictionless experience similar to Amazon Go, where customers present a card or phone once and receive a consolidated bill for all services.

Barriers and appetite for change

Is there appetite for investment? Chris says yes. European markets already experiment with pay by plate, while U.S. retailers face regulatory hurdles. Quick service restaurants provide a model, using location data to prepare orders as customers approach. Fuel retailers want similar capabilities to reduce friction and improve experience.

Where to start

Chris outlines three layers in the payments value chain:

1. Forecourt layer: on site hardware and software, the most complex and costly to modernize.
2. Vendor layer: acquiring and processing contracts, often optimized already.
3. Above site layer: connects forecourt to external systems, the best starting point for innovation.

Focusing on the middle layer (payment orchestration or gateway) offers quick wins. It enables customer identification, fraud prevention, and value added services without requiring full forecourt transformation.

Victor agrees: start small, improve customer experience incrementally, and avoid boiling the ocean. Doing nothing is not an option in a competitive market where first movers will gain significant advantage.

The innovation gap

Payments have evolved rapidly, driven by tech led companies releasing hundreds of features each cycle. Retailers that wait for perfect solutions risk falling behind. Chris encourages proof of concept projects and vendor exploration, even if solutions do not cover 100 percent of use cases. Paralysis by analysis is a common pitfall.

Victor highlights the challenge of vendor selection. With hundreds of players, choosing the right partner is daunting. Aevi’s role in payment orchestration helps future proof experiences by connecting hardware, software, and acquiring partners.

Customer experience as the holy grail

Ultimately, the discussion returns to customer experience. Nathan observes that fuel retailers should compete on experience, not just price. Victor agrees, noting that loyalty and personalization can turn a forecourt from a necessity into a destination. Chris adds that the ability to identify customers and tailor offers will drive competitive advantage.

Practical steps and challenges

Chris identifies two main hurdles: privacy regulations and latency. Linking payment data to customer systems requires legal analysis and technical adjustments. Many systems are batch based, making real time decisions difficult. Creative solutions, such as asking for receipt preferences during fueling, can reduce friction.

Victor stresses that incremental improvements matter. Even small steps, like enabling reliable pay at pump or integrating loyalty with payments, can enhance experience and build customer trust.

Key takeaways

• Fragmentation is costly: innovation, downtime, and operational complexity drain resources.
• Customer identification is critical: 60 percent of visits go unidentified, limiting loyalty and personalization.
• Start with the middle layer: payment orchestration offers quick wins without full scale transformation.
• Think small, act fast: avoid paralysis by analysis; proof of concept projects can drive progress.
• Customer experience is the differentiator: seamless, personalized journeys will define future success.
• Future vision: AI driven routing, telemetrics integration, and frictionless payments could transform forecourts.

This episode underscores the urgency for fuel retailers to modernize payments and embrace connected experiences. The path to a unified payments estate is complex, but starting small and focusing on customer experience can unlock significant opportunities.

sarah.koch@aevi.com