GUM Mass Transit

Question 1

How do payments uplift passenger experiences?

First, aim to make transport hassle-free with innovative payment options that deliver convenience, personalization, and operational efficiency.

Ride the contactless momentum

Unlock new eCommerce capabilities

Mobilize workforces to accept fare payments

Optimize transit routes with personalization

Thanks to innovative eCommerce capabilities, transit operators can also expand their closed-loop systems to offer diverse top-up methods or innovate with account-based ticketing. Riders can benefit from more digital payment options, like app-based tickets that support different types of fare media, including QR codes.

Operators can also offer subscription services through recurring billing, enabling more cost-effective travel without upfront investment that aims to meet riders' expectations of seamlessness.

Open-loop systems allow passengers to tap to ride and pay with their contactless EMV® debit or credit card, smartphone, or wearable device. Tapping to ride is a familiar gesture: quick and convenient with low wait times to improve the passenger experience.

For visitors, local residents and even occasional riders, contactless payments also help to remove barriers to using public transport. Riders can be confident they’re getting the best possible fare without needing to understand the ticketing system, fare structure, or how to obtain a ticket or closed-loop card.

Tap-to-phone technology not only modernizes transit operations by converting mobile devices into payment terminals, it also enables workers to serve passengers quickly and efficiently at the station or during transport.

On-the-go payment processing can be deployed in conjunction with traditional ticketing systems to enhance efficiency and reduce wait times for passengers. On top of that, contactless helps alleviate waiting at ticket machines and offices, so staff can focus on passenger support.

Tokenization can help customers discover the best way to reach their destination based on their account details and payment history. Operators can be powered to leverage this insight: from alerting passengers which stations have step-free access to providing route suggestions coupled with payment methods, which could include installments built into digital wallets.

Question 2

How do payments help fast-track your revenue?

Next, aim to drive acceptance and reduce risk to boost ridership and efficiency while implementing flexible payment options with loyalty in mind.

Drive flexibility to maximize sales opportunities

Incentivize passengers to keep using transit

Elevate fraud management with AI

Leverage new digital innovations for cost efficiency

Embracing diverse payment methods can transform mass transit into a more user-friendly and inclusive service. Options like buy now, pay later (BNPL), in-app payments, or transit card top-ups give passengers added flexibility, so you can minimize lost sales opportunities.

Opening payment acceptance to a wider ridership with more payment methods helps make transit accessible to everyone, everywhere so you can build a steady revenue stream.

Tokenization allows transit operators to recognize passengers across journeys and gain a more complete view of rider preferences. Being able to recognize passengers in this way can make loyalty programs and rewards possible, equipping you with new insights to offer incentives that can strengthen rider loyalty, which helps drive increased revenue.

For example, an operator could work with a coffee chain that rewards season ticketholders with monthly discounts on their favorite drinks. It’s a win-win.

Transit has one of the highest fraud rates at 1.14%^[1]. Criminals have been using AI for years to automate fraud—and you should be using it, too. AI and machine learning can enhance profitability by helping you to optimize the approval of good orders and minimizing unwarranted rejections.

Combining this with customizable rule engines, real-time behavior analysis, and account takeover protection can help you increase acceptance rates, lower manual reviews, and boost bottom lines.

Digital technology can provide significant cost savings for transit operators. Innovations like virtual cards reduce the cost associated with physical closed-loop cards, and tokenization can recognize passengers entitled to a specific fare class, such as senior citizens, while also optimizing fares over the course of a day, week, or month.

Digital payments also minimize the time and effort spent handling cash and printing tickets, resulting in more accurate fare payment and fewer refund claims due to pricing errors.

Question 3

How do payments take a new route for growth?

Finally, future-proof your payment infrastructure to keep pace with growth while enabling inclusivity and sustainability for residents and visitors.

Prepare ahead for increased transaction volumes

Innovate with a robust ecosystem of partners

Arrive at a more sustainable future

Don’t leave passengers behind

Transit operators can prepare for higher transaction volumes by implementing a robust and reliable payment solution capable of handling large amounts of contactless and digital transactions.

With a single connection to our open payments platform, transit operators and technology leaders can also benefit from modular services like payment processing, digital/in-person accept, tokenization, fraud management, and more—all in one place. This lets you be prepared as you scale, with the capabilities to accept the payment methods of tomorrow.

Partnerships can significantly aid public transit operators' growth. Collaborating with payment partners who are well-versed in fraud management and PCI DSS compliance can help you design the payments solutions of the future.

As operators extend to new routes, services, or regions, digital payments can help scale operations to serve more passengers. For those planning their MaaS vision, digital payments can foster partnerships with other transit operators or service providers for integrated ticketing across different types of transport.

Cities can play a vital part in tackling climate change as mass transit ridership increases. Reducing plastic travel cards and paper tickets cuts costs for operators and reduces their carbon footprint. With digital payments, you can instead focus on the machines, processes, and workers who maintain the systems’ infrastructure.

Digital payment systems in public transit help promote inclusion by simplifying use and enhancing ridership across diverse demographics. They unify transport methods, increase interoperability, and provide efficient travel experiences.

To drive inclusivity, integrate prepaid cards into digital systems, promoting participation for under- or unbanked individuals. Digital solutions can also increase accessibility for financially disadvantaged riders or those eligible for subsidized travel, offering options that reward frequent travel.

Now let’s steer the way to innovation...

[1] 2023 Visa Merchant Fraud Report, August 2023. Based on insights from 2.7 billion+ global transactions worth $381B from our flagship fraud prevention solution Decision Manager, Visa has compiled our latest findings about fraud trends and AI automation. Transit is referenced as one of the industries with one of the highest fraud rates.