In the era of 'Digital India', several Indian commuters have suggested that payment modes in the country's transport system also need an overhaul.
According to Koan Advisory report on “Transit Payments in India: A Case for Choice and Interoperability”, India must expedite the development of efficient public transit in urban areas to meet the mobility needs of an estimated 480 million daily commuters by 2031.
In India, interoperable payment solutions are often overlooked in the urban transit systems. However, developments in digital payments have maintained interoperability as a core feature, and this has led to a far higher quantum of exchange over UPIs, debit/credit cards, and prepaid payment instruments (PPIs), among others.
This year Koan Advisory surveyed 1,250 commuters in Bengaluru, Hyderabad, Mumbai, and Delhi to understand the perceptions and preferences in transit payments.
(Exciting news! Mint is now on WhatsApp Channels :rocket: Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)
The report revealed that 76% of the commuters want multiple modes of payment in public transit. Among those surveyed, 66% wanted to use their bank cards at transit entry or exit points whereas 69% preferred QR-based payments. 63% of the commuters said that bank cards (debit and credit cards) would improve convenience and save time.
Notably, younger cohorts exhibited a greater preference for using their debit/credit card as a payment option on public transit. Interestingly, not a single respondent opted for just one payment mode. 60% opted for triple payment options, while 40% opted for dual combinations.
The preference for the multiple modes of transport was because many tourists to India come from developed economies such as the US, UK, and Canada, where credit cards are frequently used to pay transit fares, the report added.
Among the Indian cities, the preference for using bank cards for transit was highest in Hyderabad (83%) followed by Delhi (66%), Mumbai (58% and Bengaluru (56%), respectively.
Reward incentives such as discounts, cashback, loyalty points, mileage, and vouchers are other considerations for commuters in choosing a digital payment instrument over another.
Transit systems in megacities such as London, Singapore, and Hong Kong support payments using prepaid transit cards, open-loop contactless smart cards, and smartphones. Transit authorities in these cities enabled account-based ticketing systems to reduce issuance costs associated with prepaid cards, decrease the multi-modal commute time, and make transit payments seamless for tourists, the report added.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess