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Payments Evolve for Public Transportation


Payments Evolve for Public Transportation

The popularity of public transportation is steadily growing as people use it in tandem with rideshare technology to become less dependent on individual automobile ownership. Last year in the United States, over 10.5 billion trips were taken on public transportation. This reflects a 30% growth in public transportation ridership since 1995.

Part of the increasing popularity of public transportation involves how technology has helped make the task of navigating and paying for rides easier than ever for riders. Most major transit authorities have developed mobile apps which allow for riders to plan trips, view system maps, receive updates about delays or outages and pay for their individual rides as well as refill their transit accounts.

As technology evolves, so does a consumer’s preferred payment method and the opportunity for transit systems to increase revenue by catering to multiple payment options. Gone are the days of accepting only cash or credit for a fare. Today, consumers want quick and easy payments so they can get on with their day.

This is where payment processing technology comes into play. Transit authorities should explore their options, and look for payment solutions that offer easy-to-use customer self-service options via the web, mobile and IVR, as well as autopay and self-service kiosks. The best options will enable payment data to be seamlessly integrated into any existing transit management systems to reduce manual efforts and improve reconciliation.

Modern payment technology allows transit riders to use mobile payment options for refilling passes, which is important as many cities are adding NFC contactless payment readers at subway and train turnstiles as well as at fare collection hubs onboard buses. This means that no physical card or pass is required; instead, the technology allows riders to simply hold their mobile device to a contactless reader briefly with a “tap and go” method which will automatically deduct the cost of their fare from a pre-loaded transit pass or directly from their bank account, credit or debit card.

Not only does public transportation serve as a greener way of getting around, it can also offer a tremendously positive impact on the local economy and community. Every $1 invested in public transportation generates $4 in economic returns for the local economy. Research has also shown that 87% of trips on public transportation have a direct effect on the local economy in that area.

Are you offering all the convenient payment options customers want? How does your customer’s experience stack up to new industry best practices? Govolution can help you increase ridership by improving customer experience with more convenient payment options. Contact our payments experts today.