In our previous article, we discussed Payment Trends in the Mobile Industry and how they have been rapidly adopted and integrated in stores and services across the world. Now, we will look at trends in the transportation industry and how companies are working toward enhancing the customer experience to increase sales.
Now more than ever, the transportation industry is focused on building integrated digital platforms, offering diverse payment channels, and improving the use of data to better understand their customers in order to improve their overall transit experience. To give you a better idea, here are some of the top payment trends in the transportation industry right now:
Decline in Cash Payments
According to the Federal Reserve Bank of Boston, mass transit companies have historically accepted cash or proprietary tokens to pay for public transportation. Tokens offered several advantages over cash as a means of collecting fares. Tokens increased consumer convenience by alleviating the need for consumers to carry exact change, and allowing them to purchase discounted tickets in advance, and it also reduced employee theft of cash.
Nowadays, however, many transit companies are restricting the use of cash and tokens as a means of payment. This is to prevent the spread of COVID-19 as some fear that it can be spread from person to person through physical tender. Companies are instead focusing on non-cash forms of payment, such as pre-paid passes, credit cards, and contactless payments.
Pre-paid Passes
Companies are encouraging customers to purchase pre-paid passes for transportation such as buses, subways, and highway tolls. This alleviates the risk of spreading the virus during the payment interaction and is a safer way of doing business. Customers are able to purchase the passes online from the comfort of their own home and then load it to their mobile wallet or simply display the pass on the dash of their vehicle. Doing so provides peace of mind and offers a safe, contactless payment solution.
Increased Use of Contactless Payments
Contactless payment technology is becoming an increasingly popular and preferred way to conduct business quickly and safely. Contactless tap-and-go payment transactions can be used by hovering your smartphone or credit card over a POS system’s NFC reader. Not only is it a safer method of payment during today’s unprecedented times because it eliminates the need to touch the payment terminal, it’s also much faster which contributes to a better customer experience.
A research report from Juniper Research predicts that by 2022, more than half of all POS transactions will be contactless. As such, transportation services that want to keep customers happy are adopting contactless readers to provide faster and safer ways to conclude customer transactions.
Transportation Apps
To go one step further, some transportation companies are creating applications to assist in the payment process, such as ClickBus and OMNY. Implementing apps allows customers to go through a contactless payment process and provides them with a safe option as well as a fast, convenient checkout. The decision to launch an app for customers also gives transportation companies the ability to track consumer behavior and base future decisions off of that data.
ID TECH’s Transit Solutions
Payment terminals require technology that is durable, secure, and reliable to keep up with high traffic and outdoor environments. Since transit terminals tend to be out in the open and used by hundreds to thousands of people, they must be able to withstand the wear and tear of constant use and harsh weather conditions. The best products with operate normally with years of use and will only require replacement from extensive damage or when the operator is ready to upgrade to a new migration path. ID TECH’s transit products are rugged devices that have been tested in the most intense weather environments and proven to be the most reliable for customer transactions.
One such payment solution is ID TECH’s VP5300M – a PCI SRED certified MSR, EMV contact, and EMV contactless all-in-one secure motorized payment acceptance reader. Specifically designed as a direct drop-in replacement for older non-PCI certified motorized readers, the VP5300M easily fits into the same space taken by the vast majority of existing motorized readers, making it the perfect upgrade replacement to all existing unattended and motorized payment solutions. The VP5300M can be paired with ID TECH’s L80 and L100 PIN pads to accept PIN transactions, as well as the ID TECH EMV Contactless NFC Antenna Module to accept contactless transactions.
About ID TECH
ID TECH is a leading global payment peripheral provider with expertise in magnetic stripe, EMV contact, EMV contactless, and OEM customization solutions. We have a strong foundation and continued success rooted in card readers and are always expanding our product offering to provide innovative solutions for the ever-evolving payments industries. Payment Security is an integral part of our product offering, and ID TECH as a company prides itself at being at the forefront of payment security in our design, development, manufacturing, and sales processes.
To learn more about ID TECH and our dedication to achieving payment security, please visit our about page.