A new research report from Mercator Advisory Group, Transit and Tolls: New Tracks for Growth in Prepaid in the U.S., examines how prepaid payments are displacing cash in both mass transit and highway tolling. The two sectors offer market opportunities for prepaid providers across the value chain, but challenges remain.
The Transit and Tolls segment of the prepaid market encompasses a variety of form factors, including closed-loop magnetic-stripe cards, open- and closed-loop contactless cards, transponders, and increasingly mobile apps. All hold promise for reducing the role of cash and cash handling in major transportation systems.
“Despite the challenges of legacy systems and government contracts, transit and tolling offer opportunities for companies all along the prepaid value chain from issuers to processors to distributors,” said Ben Jackson, Director of Mercator Advisory Group’s Prepaid Advisory Service and coauthor of the report. “As transportation payment systems adopt new technologies, prepaid will be an important source of funds for commuters of all types.”
This report is 20 pages long and contains 7 exhibits.
Organizations mentioned in this report include: Chicago Transit Authority, Cubic Transportation Systems Inc., E-Z Pass, FasTrak, GeoToll, Masabi, Massachusetts Bay Transit Authority, Minnesota MNPASS, Ring Theory, SunPass, TxTag, TollTag, Utah Express Lane
Members of Mercator Advisory Group's Prepaid Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.