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Data for today’s episode is provided by Mercator Advisory Group’s Report: Commuters Win with the Evolution in Transit Payments
Demographics of Prepaid Transit Fare Purchasers:
- 25% of consumers surveyed by Mercator Advisory Group in 2020 have purchased prepaid transit fares.
- Younger individuals and high-income earners are more likely to have purchased prepaid fares for use on public transit.
- 44% of survey respondents ages 18-24 and 41% of respondents ages 25-44 reported having purchased prepaid fares to use on public transit.
- In comparison, just 14% of respondents ages 45-64 and 4% of respondents ages 65+ have purchased prepaid fares to use on public transit.
- 21% of respondents earning less than $50K and 24% of respondents earning $50K-$75K have purchased prepaid fares to use on public transit.
- In comparison, 30% of respondents earning $75K-$100K and 31% of respondents earning over $100K have purchased prepaid fares to use on public transit.
Paying for transportation runs the gamut from cash and checks to modern, contactless mobile apps that let riders pre-plan and pre-pay for trips. Financial institutions have an opportunity to support the millions of riders in the U.S. that use mass transit and other forms of transportation that constitute billions of payment transactions annually. The new mobile-based transit payment apps are not only digitizing cash and check payments at the fare box, but extending to mobile payments for other purchases along the journey.