As consumer demand for convenient and efficient payment methods continues to grow, coupled with the introduction of new technologies and infrastructure, public transport payment devices is evolving to become more diverse and intelligent.

Trends in Transportation Payment Methods

From 2021 to 2023, the use of contactless payments in public transportation systems worldwide has seen a significant increase, with millions of contactless transactions occurring daily. According to Pymnts, the global use of open-loop EMV cards for ticketing is expected to rise from 24.8 million in 2021 to 136.9 million by 2025. As reported in the 2020 Global Public Transport Report, more than 25% of 500 surveyed cities have already introduced account-based ticketing and contactless payment methods in their public transport systems, and this number continues to grow. Contactless electronic payments offer benefits to both service providers and passengers, becoming a mainstream payment method.

Popular Payment Methods in Transportation

The shift towards contactless payment methods is transforming payment devices for transportation systems. Digital and cashless payment methods are increasingly popular in public transportation:

1. Contactless Technology-Enabled Bank Cards: These are a popular choice as many people already have bank cards with contactless capabilities, making them convenient to use. According to Payments Card Mobile, the number of global payment cards reached 14 billion in 2016 and is expected to grow to 20 billion by 2026.

2. Mobile Payment Applications: Many smartphone users prefer using mobile payment apps such as Apple Pay, Google Pay, or Samsung Pay, eliminating the need to carry physical cards. As of 2023, there are 6.92 billion smartphone users worldwide, representing 86.34% of the global population, according to Statista.

3. Transit Cards: While transit cards are a closed-loop solution, they remain popular among operators. However, there is a shift towards open-loop payments, such as in the Netherlands and London. Cities like Hong Kong with the Octopus Card, New York with the MetroCard, and Bishkek with the Tulpar card offer transit cards that work similarly to contactless payments, allowing users to top up and pay for various transportation fees.

4. Mobile Ticketing and QR Codes: Some transportation systems allow passengers to purchase tickets directly via smartphones and display barcodes or QR codes on their screens for scanning when boarding. QR codes are becoming a popular payment method in some countries. Juniper Research estimates that the total number of QR code payment users will exceed 2.2 billion by 2025. To pay, users simply scan a QR code displayed at the transportation system entrance, and the fare is deducted from their mobile wallet.

Conclusion

The development of payment devices for transportation is continually evolving to meet changing needs, making travel greener and more convenient. Shortly, we may witness further integration of various transportation modes and payment devices, creating a unique multimodal transportation environment. This evolution will enhance the efficiency and convenience of public transportation, benefiting both operators and passengers alike.