Payments

Transportation apps find success with payment technology

  • Fintech companies are infusing transportation apps with the ability to buy on the go.
  • "The Uber and Lyft style mobile commerce is becoming a basic expectation in other areas of transportation.”
close

Email a Friend

Transportation apps find success with payment technology

Uber and Lyft may have had their sights set on disrupting the taxi industry, but they ended up changing consumer expectations for commuting. Frictionless and invisible payment capabilities within an app have created a new niche for fintech companies. Transportation apps with the ability to buy on the go are moving the point of sale away from kiosks and ticketing counters and into a commuter’s pocket.

“To be able to do more digitally and on the move is making people’s lives more efficient,” said Jonathan Donovan, head of product at Masabi, a software company specializing in mobile transportation ticketing. “The Uber and Lyft style mobile commerce is becoming a basic expectation in other areas of transportation.”

Masabi’s cloud based software solution JustRide brings payment functionality to public transportation apps. Merchants and travel providers connect their existing apps to the JustRide API.

Incorporating an app with a solution like JustRide benefits both the merchants and consumers. Transit authorities can run customer management through the JustRide back office, including reporting, refunds, and validation. There are also integrations for Masterpass and Apple Pay that allow consumers to purchase tickets with mobile wallets. Since users can manage their rail cards online, travelers don’t have to be paranoid about knowing where their rail cards are at all times, eliminating the annoyance of reporting a lost card (something I experienced firsthand while living in New York City).

Along with better customer management, more data and user information helps transit authorities better understand how travelers behave. And since POS hardware is in a customer’s pocket, maintenance costs, like  purchase as many paper tickets or emptying kiosks of cash, drop.

Masabi’s most established U.S. partnership is with Boston’s MBTA. Over half the tickets sold in Boston are through the JustRide app integration. Cost savings have allowed the MBTA to reinvest $70 million into other investments.

Masabi’s recent partnership with the New York MTA has created a lot of buzz. Commuters traveling on the Metro North and LIRR railways can now purchase tickets through the JustRide integration on the MTA eTix app.

Since the deal with the MTA went live, there have been 600 thousand ticketing transactions, a nice start for a new market.

MasterCard and Kiolis recently invested in the company. MasterCard’s global presence helps Masabi with payment facilitation, like the continued integration of Masterpass. Keolis is one of the largest French transportation groups with rails, buses, and airport services, and a new deal to bring mobile ticketing to over 70 French cities is already in development.

Donavan views the partnership with Keolis as a blueprint for future partnerships, moving into trip planning platforms with payment functionality.

“The expectations of riders are increasing as more functionality is entering into the sector. Mobile ticketing integration into trip planners is making the travel process digital. Reserving a shared bike, buying a train ticket, and finding a cab from one location isn’t that far away,” he concluded.

0 comments on “Transportation apps find success with payment technology”

Payments

With Direct Payouts, Visa can push payments to cards and accounts cross border

  • Visa Direct has built an ecosystem of senders and receivers powered by push payments.
  • Visa is now launching Visa Direct Payouts, extending push payments cross border and to more types of accounts.
Zachary Miller | March 30, 2021
Payments

‘Payment companies are taking a clear political stance’: Politics and payments in the wake of the Trump administration

  • Should payments be politicized? As more than 400 people face criminal charges for the Capitol riots, we explore the repercussions on the payments industry.
  • Experts weigh in on potential polarization and regulations in the long term.
Rimal Farrukh | March 24, 2021
Payments

‘2020 was the year of QR code adoption — 2021 will be the explosion’: QR codes continue to climb in popularity

  • Past the three-month mark of 2021, we’re still seeing QR codes grow in popularity.
  • But how this payment method will expand continues to leave the future of QR codes kind of blurry.
Rivka Abramson | March 18, 2021
Payments

Baseball fans will get a cashless payment experience when they re-enter Petco Park this season

  • Baseball fans will have a cashless experience when they re-enter San Diego Padres' Petco Park next season.
  • The team signed a partnership with Tappit to enable fans to make transactions through the MLB Ballpark app at the stadium.
Rimal Farrukh | March 18, 2021
Payments

Subway standardizes payments across its stores and geographic footprint

  • Subway now offers a standardized payment solution across its European franchisees.
  • Amadis and Worldline are part of nexo standards, a member association which aims to globally standardize payment processes.
Rivka Abramson | March 12, 2021
More Articles