The world of mobility and ground transportation is in a constant state of evolution, and new technology is driving much of that change - particularly in the realm of payments. To gain a better understanding of the current state of payments in this sector, Worldpay surveyed over 2000 consumers in the UK and US, asking them about their payment experiences across a wide variety of publicly available transport options, ranging from ground transportation and micromobility to paid parking and EV Charging.
The survey revealed five main themes that highlight key areas where improvements can be made to enhance the payment experience for customers, ultimately driving more demand for transport businesses:
The majority of customers in both the UK and US prefer contactless payments over other payment methods. So much so that it was the top choice for 4 out of 5 transport methods in the US and across all in the UK. The runner-up to contactless payments is online/app-based payment, which is favoured for similar reasons as contactless as it offers a more convenient alternative to other tested payment methods, such as cash or QR codes. Cash still plays a key role, particularly in paid parking and public transport. However, in many cases, the wide availability of this payment method is the key driver of its popularity rather than it being preferred over other payment methods.
Younger age groups are more open to embracing innovative payment methods, such as contactless, likely because they have been brought up in the digital age and can be more tech-savvy. In contrast, the preference for cash among older consumers is mostly due to their familiarity and comfort with its use. However, this trend is not observed in newer industries such as electric vehicle charging. This is likely because these industries integrated innovative payment methods from the outset and indicates that older generations have the willingness to embrace newer payment options. For this reason, businesses should not shy away from replacing cash acceptance with more modern payment technologies.
In today's world, convenience is the #1 driver of choice for consumers. However, many consumers still find the current process of paying for ground transport and mobility services to be inconvenient. There is significant room for improvement across the board, and considering the competitiveness of the industry, operators who fail to deliver the desired payment experience to their customers may risk losing out on substantial revenue opportunities.
The research revealed that transport consumers opt for whatever payment method is most convenient instead of staying loyal to one brand. This trend is not entirely unexpected given the situational nature of travel or the limited availability of payment options in some instances. However, to give themselves the best chance of building brand loyalty, operators should strive to offer a payment experience that surpasses expectations. Incorporating loyalty discount schemes or other payment-related solutions could help create a more loyal customer base. Understanding how customers prefer to pay and offering them the convenience they seek could encourage repeat usage.
Consumers want a seamless payment experience. Operators are now responding by creating a mobility ecosystem where customers can book various forms of transportation in just one purchase. This approach is known as Mobility-as-a-Service (MaaS), which involves a one-stop approach to journey planning, passenger data, and payments. When partnered operators have a single view of the customer across multiple forms of transport, they can better understand their customers' needs to further enhance the experience. Additionally, when passengers pay for one form of transportation and are then presented with other options to complete the rest of their journey, it creates opportunities for cross-selling. This transforms what were once competing mobility services into complementary ones.
As the world of mobility and ground transportation continues to move at pace, it is more important than ever to stay up-to-date on the latest trends and consumer preferences in payments. To learn more about the research findings, generational differences, and the key insights that piece it all together, check out our latest report on Mobility and Ground Transportation Payments. We give a comprehensive look at the current state of payments in the mobility sector and provide valuable insights for mobility operators looking to improve their payment offerings.
Worldpay has powered businesses of all sizes to make, take and manage payments for over 30 years. Whether online, in-store or mobile, you’ll find Worldpay at the heart of great commerce experiences in 146 countries across 225 markets, supporting over 50 unique payment methods across 135 currencies. Additionally, Worldpay offers solutions that help merchants optimise authentication, fight fraud, get real-time business insights and more. In 2022, Worldpay processed USD 2.2 trillion in total volume. Our customers include some of the biggest brands in the world, such as Amazon, Coca-Cola, Deliveroo, Emirates Airlines, Lenovo, Netflix, PlayStation, Sotheby’s, and Zara. To learn more, visit worldpay.com.
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