Study from ETA Member Visa Identifies Payments as Factor to Improve Public Transit Globally

With over half (52 percent) of global consumers frustrated with the experience of using public transit, improving payments flows and efficiency could be a major driver of public transit growth, Visa’s recent report titled “The Future of Transportation: Mobility in the Age of the Megacity” has found.

According to the report, if it were easier to pay for public transit, average use would increase by 27 percent. In fact, payment issues were often cited as primary complaints around public transit systems globally. The research found that 52 percent of respondents said the most common frustration when it comes to paying for public transit are long lines, 47 percent said the need for different tickets for different modes of travel is an issue, 44 percent said not knowing how much to pay is a problem, and 41 percent complained of cash-only services. According to those surveyed, these frustrations make them less likely to use public transit and more likely to drive their own cars.

The global population is predicted to grow and become more urban – 68 percent of the world’s population will live in urban centers by 2050, according to the UNI – creating more “megacities” with populations over 10 million people.

“The future success of our cities is intertwined with – and reliant on – the future of transportation and mobility,” said Mike Lemberger, SVP, Product Solutions Europe at Visa said in a press release. “Visa and our partners have an important role to play, both in streamlining the payment experience for millions of commuters around the globe, and supporting public transportation authorities in their quest to build sustainable and convenient transportation solutions that improve the lives of the people who use it.”

Cities across the world have recently announced or deployed contactless payment solutions in an effort to increase payments efficiency and convenience for riders. London has successfully deployed an open-loop contactless payment system that has created cashless buses and enabled travelers to pay their fares directly from their NFC-enabled bankcard. According to a report from Digital Transactions, an average of 1.5 million trips that utilized contactless payments were taken daily during across a week in the summer of 2018 in London. New York, Washington, D.C., Sydney, Chicago, Miami, San Francisco, and Philadelphia have all recently announced plans or begun implementing contactless payment systems for their transit systems.

But contactless payments aren’t the only way to improve payments for public transit, the Visa report concludes. According to the report, 50 percent of all respondents would be open to using public transport if they had access to a consolidated mobile app that allows them to plan and pay for journeys across a mix of public transport options. This option was particularly popular among younger respondents, the report found – 65 percent of Gen Z consumers and 55 percent of millennials said they’d use public transit more if such an app was a payment option.

According to a press release, Visa commissioned the Future of Transportation consumer research with Sapio Research. The survey was conducted with 19,384 consumers living in either of the two biggest cities in 19 countries. All interviews were conducted online during July 2018.

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