Partner, Payments

Digital payments are driving the future of transit

  • 91% of riders expect contactless payment options to be a part of their public transit experience.
  • 61% of riders said that having capped fares as an option for their rides would encourage them to take transit more often compared to traditional fare payment methods.
close

Email a Friend

Digital payments are driving the future of transit

As people get back out into the world, many increasingly plan to use public transportation to reach their destinations, whether they are traveling to work, school, or leisure activities. Visa’s second Future of Urban Mobility Survey found that nearly half (42%) of respondents intend to increase their usage of public transit over the next year. An overwhelming majority (91%) of surveyed riders either strongly or somewhat expect contactless payments to be an option in their transit experiences and nearly half (45%) said that it was their preferred method of payment. 

The findings suggest that the role of transit in everyday life is becoming more significant. And with that, operators need to be ready to meet the demands of passengers seeking an experience that is optimized for efficiency, convenience, and inclusivity.

Transit fits neatly into everyday life

While the idea of a “typical schedule” may be a thing of the past, people across the globe still depend on transit to get them where they need to be. Among employed riders, 62% use public transit at least three times a week, and another 28% report using it five times a week or more.

That reliance extends beyond traveling to and from work. Roughly one in three (30%) riders use transit as their primary means of transportation, and 55% of riders take it to leisure activities. For plenty of riders, factors like cost, convenience, and trip length all play a role in motivating them to choose transit. And the benefits extend beyond themselves – most (88%) riders reported that sustainability and the environment were an important part of their decision to travel by transit.

Rethinking the fare payment experience

Fare capping has proven itself as both appealing and equitable for riders, providing them with an opportunity to save money. Nearly two-thirds of those surveyed (61%) said that having capped fares as an option for their rides would encourage them to take transit more often compared to traditional fare payment methods.

With faster rides ranking as a top motivator for 43% of riders, fare capping eliminates idle time spent figuring out how much a ride may cost and streamlines the boarding process for everyone. Eliminating extra time and complexity benefits not only the rider, but it helps ensure that operators are able to keep everything running smoothly and on time even during peak hours of usage. 

Building a seamless experience for a transit-driven future

Our research suggests that for transit operators, bringing more riders on board will depend in large part on how well they adapt to meet the evolving range of expectations. The Future of Urban Mobility Survey has made it clear that digital payments are becoming the norm. 

Visa is working to help deliver more seamless contactless payments on transportation in cities around the world. Recently, Visa and its transit partners have launched projects in countries including France, Japan, Mexico, Thailand, and Turkey. Leveraging digital solutions like these offers transit operators unique advantages and benefits including improved security, better operational savings, and a streamlined adoption standard for solutions to work with any network. 

As a company dedicated to an open, inclusive digital economy, empowering operators to build a seamless and convenient experience for everyone means more riders can incorporate transit into their daily lives – for work, for play, and for a greener future.

0 comments on “Digital payments are driving the future of transit”

Payments

Introducing Card Launching 101 + Guide

  • Launching a card has become a core part of banks' and fintechs' product strategy.
  • In Tearsheet's new Card Launching 101 guide, we speak to some of the best in the industry about what it takes to launch a successful program.
Tearsheet Editors | October 03, 2023
Payments

Wading into new waters: Microsoft launches Xbox-centric Mastercard

  • Microsoft launched an Xbox Mastercard last week exclusively for US users enrolled in the Xbox Insider program.
  • But, Xbox could have done better by adding newer options to the card in terms of the application process, accessibility, and loyalty points.
Sara Khairi | September 26, 2023
Payments

TikTok and payments, a match made on social media

  • Gen Z’s popular haunt TikTok is abuzz with payments activity, surpassing $1 billion in global consumer spending through in-app purchases in Q1 2023.
  • TikTok is looking to make a name for itself in the retail space in America as well, as it battles with the White House over concerns about its Chinese origins.
Rabab Ahsan | September 20, 2023
Banking, Payments

Banks can offer speed and convenience as Wise and Swift integrate cross-border payment networks

  • Swift and Wise partner for streamlined cross-border payments, benefiting banks and their customers.
  • The Wise Platform will utilize Swift's capabilities, including cloud and API connectivity, enhancing international payments for FIs with features like payment status tracking and end-to-end visibility.
Zachary Miller | September 20, 2023
Payments

Digital shopping can benefit from the creator economy

  • Despite the proliferation of online shopping, 65% consumers still prefer to shop in brick-and-mortar stores.
  • For consumers one of the major reasons to stick to in-person shopping is their ability to try on products and test them.
Rabab Ahsan | September 19, 2023
More Articles