5 Important Survey Takeaways For Mass Transit Agencies
Can you guess the top three cities where mass transit riders are likely to pay electronically? According to the 2016 ACI Worldwide Mass Transit Payments Survey, the answer is New York, San Francisco and Chicago. Our recent survey of mass transit riders in the United States surprisingly shows that cash - not electronic payment types - is still the most used and most preferred method of payment for mass transit.
Here are five important survey findings that every mass transit agency should consider:
- Cash is still the most popular method of payment for mass transit (51%) followed by credit/debit card (30%) and mobile app payments (12%).
- Cash is viewed as the most secure method of payment for mass transit – with credit/debit card payment and mobile app payment rounding out the top three.
- More than three quarters (78%) of mass transit riders currently trust that the payments process in their city is secure and nearly the same (76%) trust their mass transit authority is protecting their payments information. However if their payment information was compromised, nine out of ten riders would revert to cash.
- Most riders (57%) don’t pay for their fare with a monthly or annual transit pass, and only about half (51%) preload a transit card or pass.
- Of the cities surveyed, the city with the highest rider trust in payments security is New York (85%) and the cities with the least trust in payments security are San Francisco (70%), Miami (70%) and Washington, DC (69%).
Given that it costs mass transit agencies nearly twice as much to handle cash payments than it does to handle non-cash payments, cash’s popularity should be concerning to them. With mass transit agencies nationwide struggling to keep fares downs and increase profitability, the agencies should continue to drive adoption on electronic payments.
Additionally, as younger riders – who are more connected and technologically savvy – continue to make up a bigger portion of mass transit passengers, it is important consider their expectations for increased immediacy and seamless digital payment options. While most mass transit agencies currently offer or are building apps that make the overall travel experience easier, they should consider including payment options in these apps to drive down the associated overhead. Not only will this provide potential long term cost savings, but also serve long term customer satisfaction.
Want to learn more about the results of this survey? Have a look at this infographic summary and be sure to read the full results and analysis report here.
Related blog posts
How 'Mega Trends' Are Shaping Payments in India
In a previous blog post, I wrote about the impact of demonetization in India and the staggering growth of new digital payment types. Building further on this, I want explore some of the “mega trends” in payments, and how India is embracing the opportunities presented by these trends.
One Year Later: How Demonetization Has Impacted India
This month marks the first anniversary of demonetization in India, and it has undoubtedly changed the country forever. When I visit India, I increasingly see micro-transactions conducted via mobile phones. Cash is still used, but I see less and less of it with each visit. We are in the middle of a true paradigm shift – and India is poised to become a global leader in new types of payment acceptance.
Security, the New Payments Ecosystem and the Need to Educate the Consumer (Or Ask Them to Unclog Your Sewer!)
When it comes to any payments ecosystem, you must remember that we are talking about MONEY. More importantly, people’s money (like yours and mine). In any conversation in this space, secure is something that is assumed. A consumer simply won’t use a new system if they don’t believe it is secure. Unless of course it’s free Wi-Fi. As we have seen, folks are willing to do almost anything to get free access on their devices, even agreeing to clean toilets! (This was a real thing… one hotspot operator added it to their Terms of Service fine print). When we talk secure, it’s important that we keep this in mind: secure is not just a piece of the Hierarchy of Payment Needs, it’s an integral part of it, which is why it sits directly on top of the foundations. Without this layer, the whole ecosystem collapses.
How to Deliver on Customer Experience
Don’t Break the Bank – Building for the New Payments Ecosystem.
How to Protect the Foundations of Transaction Banking
Scalable, Available, Reliable – #SleepAtNightability for Corporate Banking
Pairing Payments Innovation with Security Needs in Southeast Asia
Many Asian governments – most notably those of Singapore and Hong Kong – have launched well-received initiatives to encourage collaboration rather than competition between the fintech start-up world and banks. This has enabled traditional banks to tap into the innovative solutions that fintechs offer, while the banks themselves bring to the table considerable experience with data, resilience, reliability and customer protection.
What’s Your Small Business Banking Bacon?
Every hip recipe has bacon in it these days. So why shouldn’t your digital banking experience be the same? After all, it’s a yummy addition that gives a standard dish that extra flair.
Small business banking has been a prodigious untapped market for over a decade. Banks desperately strive to make revenue from this market, but in most cases, they have struggled to do so.
The Constant of Change and the Future of Commercial Banking
Let’s clarify this before I lose anyone; the self-proclaimed “pioneer of wisdom,” noted Greek philosopher Heraclitus, is credited with the saying Panta rhei, "everything flows." More commonly, you have probably heard this as “the only constant is change,” but either way, this teaching has withstood the test of time, as it is not only applicable, but feels like a worldly truth when I find myself talking about today’s transaction banking landscape. A robust time of change is upon us; one that has brought us to the precipice of a new era in banking. Understanding the driving forces behind this change as well as embracing new business models will be a key to success, or even to survival.
The Hidden Risk of Complacency
Available in Spanish and English
As a professional in Latin American electronic payments, I often forget how it is to live not knowing what’s going on backstage every time I use my cards. My specialization makes me aware of trends worldwide, so while traveling, I’m able to analyze different technologies in action. My consumer side, also known as my ‘shopaholic’ side, exposes me to multiple situations, since any trip—be it business or leisure—always provides a good opportunity to shop. On a recent trip, I had the chance to experiment with my Argentinian cards during a semi-long-term stay. While out of country for 40 days, I experienced first-hand the challenges that consumers encounter with the EMV payments barrier.
Driving Toward Innovation in Digital Banking User Experience
The need for delivering on a user experience strategy necessitates the use of common and sometimes confusing lingo like CX, UX, information architecture, UX design and UI design. It introduces ways to gain deeper understanding of customers through methods like personas, journey mapping and Kano analysis. It commands phrases like customer-centric, experience-driven, and ideation/visioning. In the past 4 months, I have interviewed more than half a dozen agencies to engage one that could go beyond the buzzwords and the methods described above. I want to be convinced that great and meaningful changes can happen to UI’s. After all, talk is cheap.