Commuters prefer incorporation of debit and credit cards as one of the payment modes in public transport: Report

  • 76% of the commuters want multiple modes of payment in public transit. As many as 66% wanted to use their bank cards at transit entry or exit points

Mansi Jaswal
Updated4 Oct 2023, 02:37 PM IST
Indian commuters want multiple modes of payments in public transit
Indian commuters want multiple modes of payments in public transit(Hindustan Times)

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.

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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.

Global perspective

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.

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First Published:4 Oct 2023, 02:37 PM IST
Business NewsNewsIndiaCommuters prefer incorporation of debit and credit cards as one of the payment modes in public transport: Report

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