Transit Insights: Studies highlight transportation desire for modern payment methods
Over the past couple months, we’ve written about the contactless payment revolution taking place in the mass transit sector. The short of it is that when buses and trains can accept electronic payments, everyone wins. Public transportation becomes easier for tourists not familiar with the ticketing process and closed group cards. Additionally, using debit and credit cards rather than paying in cash can streamline boarding processes and help buses stay on schedule. Finally, while closed group cards in use are effective, they carry overhead and require additional administration. Shifting some fares to debit and credit cards can reduce expenses for transit authorities.
Our feelings on the importance of this trend were recently made even stronger with findings from a couple studies, including one of our own. The studies asked hundreds of professionals in the mass transit sector to share their thoughts on electronic payments and plans for migration in the future. Following are some of the findings:
- Among all ticket issuing methods, contactless payments is currently the least used. However, respondents indicated that within 5 years they expect contactless to be in the top 5, along with mobile payments.
- Nearly 90% of transit companies are planning to implement mobile payments.
- The leading factors in upgrading to new ticketing systems are curbing fare evasion, reducing cash handling and administrative costs, and increasing customer satisfaction. Adopting a modern contactless payment solution can address all these needs.
- Convenience for passengers is a primary motivator of the payments revolution that’s taking place. Both mobile and contactless payments make it easier for customers to pay and get tickets.
- Traditional ticket issuing methods such as kiosks, ticket machines, and closed-loop cards will still be used along with the newer technologies.
These recent studies confirm our assertation that a payment revolution is, indeed, taking place in the mass transit sector and it’s time for companies like yours to begin planning. Unfortunately, for ISVs and other payment technology providers, addressing these needs quickly and securely can be a challenge.
If you want to fast-track your ability to deliver an EMV-certified contactless payment platform to your transportation customers, contact Creditcall. Not only do we have experience with rolling out contactless solutions to the transportation industry, we have more EMV products certified with more processors than any other gateway... plus a division designing EMV Kernel software with a first time, every time 100% pass record. With tools to address mobile payments, online payments, kiosks, and ticketing machines, we are a one-stop shop that can help you achieve your ticketing upgrade now and for the future.