A new study commissioned by Visa recommends creating a seamless payment experience to support commuter journeys with multiple “legs.”
Photo: MBTA
4 min to read
A new study commissioned by Visa recommends creating a seamless payment experience to support commuter journeys with multiple “legs.”
Photo: MBTA
Complexity in payment is often at the root of many common transit commuter complaints, according to a new study. Payments lie at the heart of every form of travel, and will continue to become more integral as more cities move to contactless public transportation, digital payments for parking and rental services such as bikes or scooters, a new report commission by Visa found.
According to the research, by 2050, 68% of the world’s population will live in urban centers — and the number of “megacities” with populations greater than 10 million people will rise from 43 today to 51 within that same period.
KEY GLOBAL TRENDS
Commute times:
46% of consumers globally have seen commuting times increase
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Half (52%) are frustrated with the experience of using public transport
One third of those surveyed (37%) expect that their commuting time will increase over the next five years.
Car use:
The personal car remains the top mode of transport for both commuting (60%) and personal travel (61%)
Only 42% of Generation Z (aged 18 to 25) respondents use a car to get to work, school or university, or for personal travel
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The most disliked aspect of driving is attempting to find a parking space, cited by 64% of respondents,
Followed by the risk of getting a fine if you park longer than anticipated (44%) and
Paying more for parking time than needed (42%)
Public transport use:
Less than half of people surveyed use public transport as a way to get to work, school or university (44%),
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That number rises to 54% for personal travel such as entertainment.
Commuters choose transportation type based on three factors: convenience, reliability and overcrowding. Importance of each factor differs depending on age:
GenX (46-55) - Convenience (79%), Reliability (82%) and Overcrowding (71%)
Millennials (26-45) – Convenience (74%), Reliability (76%) and Overcrowding (67%)
GenZ (18-25) - Convenience (62%), Reliability (67%) and Overcrowding (55%)
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Payments:
If it was easier to pay for public transport, average use would increase by 27%, according to a new study.
Photo: Visa
Complexity in payment is often at the root of many common complaints.
If it was easier to pay for public transport, average use would increase by 27%.
47% said the need for different tickets for different modes of travel is an issue,
44% said not knowing how much to pay is a problem, and
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41% cited services being “cash-only” as an annoyance. According to those surveyed, these frustrations make them less likely to use public transport and more likely to drive their own cars
For car users, 47% would like to see innovations that would advise on the cheapest fuel available
35% would like an app that recognizes the location where they are trying to refuel and pays through the app
TOP FIVE RECOMMENDATIONS
1 Invest in connectivity. City governments needs to invest in an “always on” data infrastructure, which is fundamental to the technology solutions that consumers demand. It supports real-time data exchanges that can inform people about their journey as well as provide insight for cities to ensure that services meet shifting demand.
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2 Create a seamless payment experience to support commuter journeys with multiple “legs.” City governments and urban planners need to collaborate with think tanks, automotive and technology firms, and payments providers such as Visa. As a single journey will increasingly involve more than one mode transport (e.g., car+underground+bike) – it becomes imperative to create a simple, streamlined payment experience for the commuter, ranging from contactless transit to in-app payments or platform-based solutions.
3 Integrate personal authentication into the payment experience. As companies and municipalities increasingly incorporate digital payments, they also need to integrate instant authentication. The role of Digital ID in the ecosystem is critical to address the changes in the way people use transportation, ensuring that both payment and personal authentication is easy and seamless.
4 Design commerce systems with all members of society in mind. When designing the commerce ecosystem, all members of the transportation ecosystem need to challenge their thinking to include seniors and the un- or underbanked, ensuring no one is left behind.
5 Develop strategic partnerships to drive insights. Cities should partner with corporations that can broader insight, aiding in planning. Artificial Intelligence in combination with Big Data can be used to analyse data about consumption, movement and changing trends to anticipate needs in real time as well as provide cities with insight that can help with future planning.
The pilot program showcases two companies’ technology at eight bus stops. The companies submitted their ideas through the Transit Tech Lab, which is backed by the Partnership Fund for New York City and provides an accelerated pathway for early to growth-stage companies to solve public transportation challenges for the largest transit agencies in North America.
To accomplish this work, the MBTA announced that four phases of temporary evening service changes will begin on February 28 and continue through April.
In this edition of Biz Briefs, we highlight the latest developments shaping the future of mobility — from manufacturers and technology providers to transit agencies and motorcoach service operators.
RTD aims to have 15% of all fare payments by individual customers made via Tap-n-Ride by the end of 2026, as awareness of this contactless payment option grows.
The configuration uses Ster Seating's Gemini seat platform to create a family-friendly floor layout specifically engineered to accommodate parents traveling with young children.
In this edition of Biz Briefs, we highlight the latest developments shaping the future of mobility — from manufacturers and technology providers to transit agencies and motorcoach service operators.