Innovative Payment Technologies Boost Global Transit Ridership

For commuters and visitors alike, the experience of using public transit often involves the hassle of waiting in lengthy queues to purchase tickets and reload cards, figuring out various fare types, and navigating the transit system itself. Fortunately, many transit operators worldwide are adopting new contactless fare payment systems.

These innovations simplify and enhance convenience for riders, allowing them to effortlessly tap their credit or debit card or mobile phone to pay. 91% of public transport users globally expect transit services to offer contactless payment options, with 45% preferring to make their transit fare payments this way.

Transport for London (TfL) was a pioneer in embracing contactless payments over a decade ago. Today, contactless payments account for 71% of all pay-as-you-go trips on buses, the Tube, and rail services in and around London, with 25% of taps being made using mobile devices.
In New York, the Metropolitan Transportation Authority (MTA) reported that its contactless OMNY fare payment system had been tapped over one billion times by customers as of last week. Launched system-wide in 2020, OMNY covers 472 subway stations, 204 local bus routes, and 31 express bus routes. Nearly half of all subway rides are now purchased with Apple Pay, Google Pay, or a simple tap of a credit or debit card, with two million riders tapping daily.

Other cities across the United States, such as Chicago with Ventra, Dallas with DART, and Portland with TriMet, offer contactless payment options. Internationally, cities like Mexico City, Lisbon, and Venice have collaborated with Visa, Mastercard, and transit technology firms such as Cubic and Masabi to recently introduce contactless fare payment systems.

Beyond contactless payments, some transit agencies are exploring additional new payment technologies. For instance, Jacksonville Transportation Authority customers can now use Cash App to purchase tickets via the MyJTA mobile app. Seoul Metro in South Korea is testing a "tagless" fare payment system using Bluetooth Low Energy (BLE) technology and mobile sensor devices, allowing riders to pay for their tickets simply by walking through a fare gate without tapping a card or device. Similarly, Genoa's Azienda Mobilità e Trasporti (AMT) has launched a hands-free Bluetooth ticketing feature with its GoGoGe app, enabling users to pay for their trips without taking their devices out of their pocket or bag.

Contactless and other digital payments significantly improve efficiency and cost savings for both transit operators and customers. These systems reduce costs related to maintaining ticket vending machines, printing fare media, and handling cash. More importantly, contactless payments contribute to increased transit ridership. Features like fare capping, which limits how much a rider pays for their total rides in a day, week, or month, are particularly appealing. Visa's survey revealed that 61% of transit users would be more likely to use transit services frequently if fare capping were available. For commuters, this means they no longer need to lock up funds in a monthly pass, and for new riders, it simplifies the boarding process by reducing confusion over payment methods.