Take a fresh look: mass transit is going places

February 07, 2023

Mass transit is welcoming new riders in mid-size, non-coastal areas, and agencies are looking for innovative ways – including payments transformation – to create better experiences for these riders.

The pandemic changed how people work, shop, and interact with service providers such as government agencies and healthcare organizations—it also changed how people move around.

With more opportunities for hybrid, gig, warehouse, and other non-traditional employment options, the public need for reliable, affordable mass transit options is shifting. While major metropolitan areas continue to see steady ridership, new trends such as suburban residential growth, manufacturing and distribution shifts away from urban areas, and a renewed focus on tourism are attracting diverse riders from new regions.

The transit map is expanding:

  • 40.76% year-over-year increase in U.S. Mass transit usage
  • 83.19% year-to-date rise in all commuter rail usage
     

Ridership is on the rise in mid-size areas:

  • 64.86% year-to-date rise in light rail ridership in Denver, CO
  • 86.55% Q2 rise in commuter rail usage in Nashville, TN
  • 44.12% year-to-date bus ridership increase in Flagstaff, AZ

SOURCE: American Public Transportation Association

 

More ways to go everywhere

As smaller markets develop their infrastructure, they are incorporating new options that fit the needs of their community. Buses, light rail, subway, and commuter trains are still popular modes of commuter transportation. But non-traditional vehicles are gaining popularity as municipalities, and other operators seek efficient, cost-effective ways to get riders that last mile to their destinations. Streetcars, trams, monorails, and ferries cater to tourist and recreational destinations, while vanpool services and paratransit vehicle fleets are expanding to provide targeted transport for senior citizens, airport travelers, and people with disabilities. 

 

Why payment transformation helps transit agencies of all sizes

By offering contactless and digital wallet options, transit agencies can offer these last mile transit options and satisfy a growing number of people who prefer tap-and-go payment options to cash or public transit smart cards.

For agencies, contactless payments drive cost savings by reducing labor associated with cash handling and issuing smart cards. It can also help optimize current cash flow and forecast future savings opportunities. Riders enjoy a more cost-effective experience through the flexibility and fare-capping strategies contactless payment options. 

  • It's safer for people and the planet
    Contactless payment options speed up boarding, helping reduce pollution from vehicle idling. Streamlining operations also reduces face-to-face contact, a priority during the pandemic.

  • Anticipate and solve stakeholder issues
    Mass transit agencies deal with restrictive budgets, cumbersome bureaucracy, and change-adverse stakeholders. The right payments partner can help by projecting cost savings, creating scalable pilot programs and educating stakeholders.

  • Bring every rider on board
    Agencies also need to ensure that unbanked riders and people with disabilities have access to the transportation. A strategic partner can anticipate special use cases and create unique solutions that help get everyone where they need to go.
     

We've successfully partnered with transit agencies of all types and sizes to implement the right payment solutions for their community. To find out more about how mass transit is changing and why a contactless payment option would benefit your agency, contact us today.

Related content

Myth vs. truth: What affects your credit score?

More payment options create checkout success

Want AP automation to pay both businesses and consumers?

Access, flexibility and simplicity: How governments can modernize payments to help their citizens

ABCs of APIs: Drive treasury efficiency with real-time connectivity

Colleges respond to student needs by offering digital payments

6 timely reasons to integrate your receivables

Benefits of billing foreign customers in their own currency

Improve government payments with electronic billing platforms

Hospitals face cybersecurity risks in surprising new ways

Webinar: Robotic process automation

Webinar: CRE technology trends

5 Ways to protect your government agency from payment fraud

Government agency credit card programs and PCI compliance

Modernizing fare payment without leaving any riders behind

Tap-to-pay: Modernizing fare payments pays off for transit agencies and riders

How real-time inventory visibility can boost retail margins

Escheatment resources: Reporting deadlines for all 50 states

Payment industry trends that are the future of POS

White Castle optimizes payment transactions

Managing the rising costs of payment acceptance with service fees

Three healthcare payment trends that will continue to matter in 2022

Webinar: CSM corporation re-thinks AP

Increase working capital with Commercial Card Optimization

3 benefits of integrated payments in healthcare

Top 3 ways digital payments can transform the patient experience

Automate accounts payable to optimize revenue and payments

Automate escheatment for accounts payable to save time and money

Ways prepaid cards disburse government funds to the unbanked

Webinar: AP automation for commercial real estate

Understanding and preparing for the new payment experience

Safeguarding the payment experience through contactless

COVID-19 safety recommendations: Are you ready to reopen?

Higher education and the cashless society: Latest trends

3 ways to make practical use of real-time payments

4 benefits to paying foreign suppliers in their own currency

Restaurant surveys show changing customer payment preferences

Unexpected cost savings may be hiding in your payment strategy

Digital trends poised to reshape hotel payments

Enhancing the patient experience through people-centered payments

Overcoming the 3 key challenges of a lump sum relocation program

Streamline operations with all-in-one small business financial support

How mobile point of sale (mPOS) can benefit your side gig

Rethinking common time management tips

How to apply for a business credit card

How jumbo loans can help home buyers and your builder business

How to accept credit cards online

How Everyday Funding can improve cash flow

When your spouse has passed away: A three-month financial checklist

How to save money in college: easy ways to spend less

3 awkward situations Zelle can help avoid

Dear Money Mentor: How do I set and track financial goals?

P2P payments make it easier to split the tab

Dear Money Mentor: How do I begin paying off credit card debt?

Disclosures

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.