Are you ready to stop wasting time searching for your transit card and worrying about running out of balance? As the world undergoes a digital transformation, the payment industry must keep up with the change as well. Popular mobile payment systems, such as Apple Pay and Google Pay, are becoming increasingly available for transactions globally. Adapting the transportation industry to the mobile payment system is crucial as they offer benefits such as speed and convenience to the consumer. However, as with any new technology, there are potential risks that need to be addressed, such as security.
Furthermore, mobile applications have emerged in the market specifically designed to pay for public transportation. Examples of such are TfL Oyster and Contactless in London, Skipit in Denmark, and Rav-Pass by HopOn in Israel (Enroute’s partner). These platforms already have your preferred payment method saved so not only do they allow you to pay for your rides in a seamless and efficient manner, they also provide users with perks such as rewards systems and cashback offers.
According to Shopify, a publicly traded e-commerce platform, mobile payment is defined as a “contactless way of paying that involves a mobile device such as a mobile phone, a smartwatch, or a tablet.” According to a 2021 search, 86.29% of people worldwide own a smartphone and this number is only expected to grow. (Statista) Another research conducted by Visa in 2022, explains that 91% current transportation users shared that they expect an increasing number of public transit systems to offer contactless payment. (Visa USA) Clearly, this is a thriving market that has a lot of potential and growth opportunities.
The market for mobile payment systems is rising and its benefits such as speed and convenience are the reason for it. People have had enough of wasting time looking for their public transportation cards and being unsure of whether the balance is high enough for the ride. In addition, the rider’s smartphone is likely already in their hand so using it as a payment system does not only offer convenience to the user but it also avoids them from spending time looking through their wallet for their card or spending time refilling it. This offers the riders a more efficient and seamless payment process when riding on public transportation.
In terms of security concerns using mobile wallets, there is a notion that they are attractive to cyber hackers. While this is a valid concern, it has also been proven that mobile wallets are more secure than traditional payment systems such as cash and credit cards, because of the required form of authentication required to access the wallet as well as all the digital information being tokenized.
After considering the increasing use and demand for mobile payment systems and the benefits outweighing the risks. There is a clear market for increasing the implementation of mobile payment systems into the public transportation industry. Mass transit users are eager for a user-friendly and efficient payment process when hopping on their morning commute and the speed and convenience the mobile payment system offers is key for a seamless process.