In our latest blog series, we explored payment trends within the mobile and vending industries, and learned what companies are doing to keep up with the latest technology and stay ahead of their competition. Now, join us as we examine popular loyalty solutions currently on the market, as we focus this week on the transit industry!

Ridership on public transit is on the decline throughout the country. According to the American Public Transportation Association (APTA), this is because many customers feel it is no longer as cost-effective as it once was and is less efficient than driving their personal vehicle. However, transit companies are now utilizing loyalty solutions to increase ridership and keep customers coming back. Here are the top loyalty solutions in the transit industry right now:

Loyalty Points and Rewards

In a recent study from KPMG, they found that 74 percent of customers will go out of their way to shop where they can earn loyalty points. As such, transit authorities and integrators are implementing loyalty programs that awards points to customers for number of trips taken, travelling during off-peak times, and for referrals to the program. As customers start to rack up their loyalty points, they can cash them in for rewards such as free drinks, gift certificates and even free rides. This incentivizes customers to keep riding with the same company, so they can earn points faster and use them to their benefit.

Geo-specific Discounts

According to an article by Forbes, the most successful loyalty programs share a number of things in common. First, the program must be easy to understand, and the steps for enrolling, earning, and redeeming awards must be simple to follow. Next, the program should offer discounts that are both personalized to the customer and geo-specific, which means customers are able to receive offers based on where they are and the time of day. Geolocation also allows companies to inform participants when there might be delays in traveling or cancelations.

Gamification to Increase Interaction

Gamification is a great way to increase customer interaction. It allows transit companies to connect with customers and encourage engagement. In the transit industry, the most important goals are to increase ridership, keep costs low, and retain customers. All of this can be done through the implementation of a gamification app aimed to introduce an element of fun where it didn’t previously exist.

A great example of this is when Amsterdam Public Transport installed monster stickers on the windows of every tram in the city. Riders were encouraged to record their journey and get the stickers to look as if they were eating pedestrians outside of the window. If a rider ‘ate’ 10 people during their trip, they received a prize from the transit operator.

The ID TECH Solution

ID TECH is committed to bringing innovative technology to your digital loyalty program. With the latest tap-and-go technology, it is easier than ever for your customers to redeem rewards and stay connected to your brand. In this age of ecommerce, businesses are competing to gain market share with new customers. Boost your brand awareness, customer loyalty, and market share with ID TECH’s digital loyalty solutions.

Our latest loyalty solution, the PiP, allows you to redeem rewards, centralize your loyalty program, access sporting events and concerts, and much more. PiP provides convenience across all industries by supporting Apple Pay VAS & Google Pay Smart Tap, as well as MIFARE. Please visit our website for more information on the PiP, and the datasheet can be downloaded here.

About ID TECH

ID TECH is a leading payment peripheral provider with expertise in magnetic stripe, EMV contact, EMV contactless, and OEM customization solutions. We have a strong foundation and continued success rooted in card readers and are always expanding our product offering to provide innovative solutions for the ever-evolving payments industry.  Payment security is an integral part of our product offering, and ID TECH as a company prides itself at being at the forefront of payment security in our design, development, manufacturing, and sales processes.

 

Contactless payment methods have gradually increased in popularity across the world, but COVID-19 has propelled many countries and industries to quickly adopt new technology into their payment solutions. As the novel coronavirus becomes more prevalent, we are seeing a growing desire for limited contact with cash and payment devices to prevent spread of the disease. As a result, the demand for contactless payments has increased in all industries. Retail has begun to evolve by offering NFC payments and self-service checkout kiosks to promote customer safety, and now the transportation industry has begun to advance as well.

Evolving payment methods are becoming the norm and transit systems are having to adapt to a cashless and contactless society.  Countries across Latin America have decided to include multiple payment options to reduce cash and metro card usage. Now there is a focus on other payment methods such as QR codes and EMV contactless payments using debit and credit cards. While this endeavor is for customer safety, it benefits operators by decreasing costs and commuters by increasing efficiency.

In Peru, cashless transactions have increased to 50% of all their transactions since COVID-19 has begun. The Executive President of the Urban Transport Authority for Lima and Callao began offering transportation subsidies to operators who adopt EMV card readers to match cultural payment changes. Transportation officials are hoping this will result in transactions that are safer for customers and their sensitive information.

Along with Rio de Janeiro and Sao Paulo, the city of Curitiba, Brazil will install new validators that allow commuters to use their own EMV cards for tickets, in addition to the existing NFC metro card payment options.  The ability to pay for fares with credit cards provides added convenience to commuters, eliminates the need to recharge a metro card, and reduces the number of cards that commuters need to handle.

ID TECH is currently working with several Ticket Integrators all over the world to allow EMV to be adopted into Latin America public transportation transactions. Validators are being deployed in several cities and use NFC technologies from ID TECH’s Kiosk IV to fulfill their promise to regulate transportation access through a secure ticketing system. The Kiosk IV is a rugged, contactless NFC reader that accepts both contactless payments and mobile wallets. Validators using the Kiosk IV accept both closed and open loop payments while quickly processing priority information for speedy payment acceptance. The combination of the two enables passengers to have a fully integrated, seamless transit experience.

While these payment updates are necessary for the evolving needs of public health and safety, they are sure to have a positive impact on both commuters and public transportation as well. The world is continuing to adopt new payment methods and Latin America has made huge strides by accepting EMV cards for public transportation.

Learn more about ID TECH products at https://idtechproducts.com/.