Upgrades unlock Batman's full potential and further improves his vast array of high-tech gears. You need to spend WayneTech Points. You can earn these points when you level up, progress through Most Wanted Missions, or when you get three-star ratings in AR Challenges.
There are six categories to choose from, each will cater to Batman's available gadgets, skills, and vehicle upgrades. You don't need to unlock most of these upgrades since they'll automatically become available as you progress in the storyline.