Unicard News
Introducing contactless transport payments has ‘halo effect’ on communities
Benefits of tap-to-pay solution extend beyond passengers and transport providers
July 25th 2024 by Unicard

Rising city populations around the world are pushing up traffic levels and increasing the demand for public transport – 4.4 billion people live in cities now, and this number is expected to double by 2050.

However, we can tackle the downsides of urban population growth such as rising congestion and pollution by modernizing public transport, and transport operators are increasingly using contactless payment (tap-to-pay) to improve the travel experience for passengers, making journeys easier and payment quicker.

A report by payment card services company Visa says that three-quarters of transport authorities have reported moderate to large rises in operating efficiency after introducing contactless payments, experiencing lower overheads and greater use of public transport.

Passengers and transport authorities are not the only ones who benefit from the use of contactless payments. It has a “halo effect” on whole communities as those passengers tend to use contactless payments throughout their journeys — not just for fare payment but also for food, drinks, shopping and other products and services bought near transport routes.

Research by Visa shows that enabling contactless payments for transport can lead to a 15 per cent or greater lift in transactions for retailers in the surrounding area.

Visa says contactless payments on transport can also have benefits when it comes to financial inclusion. For example, digital payment systems can make it easier for authorities to subsidise fares, allowing lower-income groups to travel more easily, providing them with easier access to higher-paying jobs.

The benefits of contactless payments and the “halo effect” align with Unicard’s efforts to secure environmental, economic and social benefits with our products and services.

Increasing the efficiency of public transport ticketing provides direct value for passengers, but also generates significant second-order benefits to society worth an estimated £4.20 for every £1 spent, according to the UK’s Department for Transport (DfT).

Transport ticketing has a role in accelerating the shift from cars to low-carbon public transport in the UK’s clean growth strategy to meet clean air targets and climate goals. Increased public transport usage is proven to reduce traffic congestion, which contributes to 33,000 annual deaths from poor air quality and is predicted to cost the economy £300bn in lost productivity between 2014 and 2030.

Improved public transport services will also “strengthen communities, sustain town centres, and connect disabled and isolated people”, according to the DfT, by increasing social mobility options for work, education, retail, healthcare, and leisure. For example, simple access to a “hopper” fare between multiple buses doubles the distance that a bus commuter could job-hunt. Unicard’s unique heritage in delivering English National Concessionary Travel Schemes and no-bank-account ticketing enhances this inclusion.

Unicard are now supporting contactless payments with our Ticketing Hub service, bringing its benefits to both passengers and transport operators across the UK.

Ticketing Hub simplifies and accelerates the deployment of contactless EMV transit schemes, particularly in situations involving multiple operators, modes, validator suppliers or back-office partners.

Passengers can tap and go with a credit or debit card, giving them more choice in how they pay for travel: be it open loop, pre-paid EMV or existing closed loop ticketing like ITSO. This makes it easier to travel using different modes of transport and different operators.