Public transit systems are critical infrastructure that shuttle commuters and fuel tourism. However, purchasing tickets and reloadable passes is often a complex process that creates long queues and checkout friction.
That’s why more cities are moving to contactless payments, as San Francisco did last year with its Bay Area Rapid Transit (BART) system. Now, the Seattle and Puget Sound region’s transit system, ORCA, is launching contactless functionality that will allow riders to tap credit and debit cards, as well as leading mobile wallets like Apple Pay and Google Pay.
While this capability will likely be a boon for daily travelers, it can also dramatically reduce strain on the system during high-traffic events. For example, Seattle is expected to see a surge of visitors when it hosts six matches of the FIFA World Cup this summer. The city also has a packed calendar of concerts and festivals throughout the year.
Prepaid to Contactless
Delivering this functionality requires a substantial infrastructure investment, but the benefits of contactless payments outweigh the costs in this case. As a result, the ticketing and transit segment is one of the few markets shifting away from prepaid models after years of reliance on them.
Contactless payments accelerated during the pandemic due to hygiene concerns, and adoption has continued to grow because of their convenience. In addition, contactless payments offer flexibility that can drive revenue gains. For example, more riders may be enticed to use public transit when they don’t have to wait in long lines or decipher complex fare structures.
Taking the Pitch
This line of thinking was one reason the UK recently scrapped its transaction limits on contactless payments. Tap-to-pay has become one of the most popular payment methods in the region, and enabling more higher-value purchases can further support economic activity.
Despite the benefits of contactless payments, optionality is key. To that end, ORCA will continue to issue prepaid cards for riders enrolled in discounted or free-fare programs, such as seniors or those with organizational sponsorships.
This inclusive approach to payments can help ensure efficient travel for fans who want to be there when the USA takes the pitch against Australia this June.
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