Payment Choices Increasing Payment Options on Public Transport - 05 September 2018 - eftpos Australia
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Payment Choices
Increasing Payment Options on
Public Transport
05 September 2018About eftpos Situational context
Launched in the 1980s, eftpos introduced a fast, Contactless payments commonly referred to as ‘tap and
simple and secure payment system which was go’ is Australia’s preferred payment method, with the
rapidly embraced by both shoppers and largest uptake of contactless payments globally. In a
merchants. eftpos revolutionised the way we pay 2016 survey conducted by the RBA, nearly two-thirds of
for goods and services, and as a result changed the all point-of-sale card payments were contactless1.
retail landscape forever. However, despite it’s popularity as a payment method,
Today, eftpos competes in an ever-changing, contactless payments has yet to be rolled out across
dynamic environment against a number of major transit networks in Australia. Transport authorities
payment systems. eftpos is an unlisted public are engaging in s number of activities such as:
company, owned and operated by Australians and • In Sydney, a trial on the Manly ferry service has been
is an essential and valuable part of the fabric of extended to include the entire ferry service and light
everyday Australian life. rail network
As an advocate for ensuring credibility and trust in • Queensland State Government has announced it will
Australia’s payment system, eftpos commissioned roll out contactless payments
Fiftyfive5 to conduct a large, robust and
representative consumer survey. The aim was to • ACT light rail to accept open loop ticketing when it
understand the community’s knowledge and starts running in late 2018
understanding of payments processing and Globally, open loop ticketing has been incorporated into
feedback on future options for payment the payment mix in a number of major cities. In London,
processing. This research provides eftpos, more than 2.1 million journeys are made daily using
stakeholders and the community with insights that contactless payments across buses, tube and rail
can drive future policy decisions. networks, accounting for more than all journeys.
About Fiftyfive5 While there appears to be openness by the Government
for open loop ticketing, there is limited reliable
information on how open loop ticketing would effect
Fiftyfive5 is a research business that combines
commuters. This report outlines the findings from a
strategic marketing expertise with a deep survey which aimed to understand payment preferences
understanding of consumers and culture. Since it
for public transport, consumer expectations of open loop
was founded in 2010, the business has grown to a
ticketing and acceptance of cards displaying the
team of 70. The team is working in over 30
contactless/tap n go logo.
markets globally, across a range of commercial
areas; from insights capability building, innovation,
brand planning and positioning to, segmentation, It works everywhere else so why not on public
shopper and retail strategy and across a diverse transport. Female, 45-49, QLD
range of sectors.
I used this method while living in London. I
preferred using my tap and go debit card as it
meant I did not have to top up a card every now
and then and wait in long lines. Also it meant if I
lost that card, I did not lose all the money along
with it Female, 25-29, NSW
1. Mary-Alice Doyle, Chay Fisher, Ed Tellez and Anirudh Yadav (2017), ‘How
Australians Pay: Evidence from the 2016 Consumer Payments Survey,
2| | Reserve Bank of AustraliaResearch approach and methodology
A nationally representative online survey of 1,500, 16 to 75 year olds
across Australia was conducted, with a confidence interval of + 2.5%.
The data reported is of people who hold a bank account and are debit
card holders. To correct for differences in the target sample collected
versus what exists in the population, the sample was weighted to known
proportions for: Gender, Age, State and Bank market share.
The survey was conducted online using one of Australia’s largest and
most robust consumer access panels, Lightspeed Research.
The average completion time was 10 minutes with the following topics
covered:
• Current usage and frequency
• Response to open loop: appeal, likelihood to use
• Benefits and concerns of open loop ticketing
• Preferred payment methods and brands in context of transit payments
• Importance of including all payment options for transit
Key findings and implications
The following key insights and implications were identified.
INSIGHT IMPLICATION
The community value the benefits of § Moving to open loop public ticketing will
1 additional payment options being offered provide a number of key benefits with
for public transport direct debit of payment, over having to
top up, as the primary benefit
The community expects State Governments There is an expectation that all cards with tap
2 to get the transition right by offering all and go capability will be accepted. This is also
payment options the case for parking metres and drink vending
machines.
The community is highly supportive of A large proportion of the community are
3 being offered choice: greater payment
options being available on public
reluctant to use credit when paying for public
transport, both credit and debit options
transport should be made available
Debit is the preferred payment method on eftpos is well positioned to help public
4 public transport. eftpos is most preferred transport users migrate to tap n go
debit payment method payments from cash
3| |1 The community would value the benefits of additional payment
options being offered for public transport
The vast majority of the public (86%) are open to the idea
of tapping with any card to make public transport payments.
Frequent public transport users (weekly commuters) are
the most open to these payments. CONSUMER OPENNESS TO OPEN
LOOP TICKETING
Openness is universally high across all States – especially in How appealing do you find the potential
VIC (88%) which was the first state to introduce travel cards option to use tap-and-go payments for
(Myki). Interest varies more depending on stage of life but is your public transport ticketing?
still high across all stages, with highest openness amongst
Youth (92%) and Younger Families (95%).
Amongst %
Public High frequency 87%
transport Moderate frequency 83% 33% Very open
frequency Low frequency 87%
Youth 92%
SINKS/DINKS 85%
Lifestage Younger Family 95%
Somewhat open
Older family 84% 33%
Retirees 76%
NSW 86%
VIC 88%
State QLD 83% 21% Neutral
SA 88%
WA 88%
The community see a number of key benefits to all BENEFITS OF TAP AND GO PAYMENTS
payment card being accepted on public transport. ON PUBLIC TRANSPORT
Moving to open loop transit ticketing will provide a Which of these, if any, do you consider to be
number of key benefits to the community. Direct a benefit(s) of the addition of tap-and-go
debit of payment, over not having to top up, is the key payments for public transport ticketing?
benefit for many (54% of Australians).
There is one less card to carry in your wallet. In addition
you don't have to keep continually topping it up and a
54%
clear record of your travels. Male, 50-54, WA
No hassle to top up or check Myki balance, quick and
easy. Female, 55-59, VIC
Less cards to carry and not having the worry of enough
funds on card. Female, 45-49, VIC Agree not having to top up
travel card as the benefit to
tap-and-go public transport
4| | ticketing2 The community expects State Governments to get the transition
right by offering all payment options
IMPORTANCE OF STATE GOVERNMENTS Australians believe it is important that State
OFFERING ALL PAYMENT OPTIONS Governments make all payment options
How important do you think it is for State available on public transport, allowing
governments to ensure all potential payment commuters to pay using their preferred
options are included so all Australians are able method regardless of whether this is through
to pay using their preferred payment option? debit or credit, with a travel card, or with cash.
It’s more convenient for customers than
having to worry about topping up opal cards,
80%
buying new cards if you happen to lose it.
Female, 35-39, NSW
Offers people another option as many people
don't always carry cash these days, can usually
offer an extra way in case of an unplanned
trip. Female, 40-44, NSW
If you forget to put money on your opal card
you will have other options to pay for your
transport. Male, 65-69, NSW
Believe it is important that
State Governments make all
payment options available on
public transport
5| |3 The community are highly supportive of being offered choice:
greater payment options being available on public transport
When directly asked, three in four believed RESPONSIBILITY TO ENSURE ALL ARE
“State Governments have
ABLE TO PAY USING THEIR PREFERRED
a responsibility to ensure all Australians are
able to pay for transport using their PAYMENT OPTION
preferred payment option”. How strongly do you agree or disagree that…
“State governments have a responsibility to
A large proportion of the community are ensure all Australians are able to pay for
reluctant to use credit cards to pay for transport using their preferred payment option”
public transport (as is seen in the wider
trend away from credit); both credit and
debit must be offered to the public in order
to meet individual payment preferences.
Each to their own...everyone is different and
75%
has their own preference, some people are
used to mykis/smartriders etc, and some
people will find being able to use debit
cards convenient. Female, 25-29, WA
I'd be happier to use debit tap and go rather
than a separate transport card. Male, 50- Strongly or somewhat agree that “State
55, VIC
governments have a responsibility to
ensure all Australians are able to pay”
6| |4 Debit is the preferred payment method on public transport.
eftpos is most preferred debit payment method.
Debit is the most preferred payment PREFERRED PAYMENT METHOD
method on public transport and ON PUBLIC TRANSPORT
along with cash is the preferred
Given the option, which would be your preferred payment
payment method for half of
method for your public transport?
Australians. eftpos is the preferred
payment brand for public transport AMONGST THE TOTAL POPULATION
for over a third of Australians. This
rises to 43% amongst those whose
preferred payment method is debit. Prefer to not to use
This again highlights the need to
include all payment options in the
82% credit to pay for
public transport
payment mix for open loop transit.
PREFERRED PAYMENT BRAND BY DEMOGRAPHIC
eftpos
You know exactly what you are Male 31%
spending and can track it more Female 37%
easily Female, 45-49, NSW
Youth (16 – 29) 27%
Using 'my' money, not going on SINKs/ DINKs (30- 55) 34%
credit Female, 50-54, NSW
Families 35%
Retirees (55+) 38%
For the 14% of Australians who would PERCEIVED BENEFITS OF PAYING WITH
prefer to pay on public transport using eftpos
cash, there are a number of drivers. Why would eftpos be your preferred payment
eftpos is well positioned to help public brand?
transport commuters migrate to
contactless payments from cash.
Australian owned and
operated company 58%
Budgeting, use my own money, no
surcharges, easy
Female, 60-64, NSW Protection for
unauthorised
If I haven't got cash I’ll pay this way
Female, 60-64, VIC transactions 53%
No surcharge, know I have money in the
account to pay for the fare. Male, 35-39,
NSW Safe, secure and reliable
I can see it disappear when I pay for way to make and accept 40%
something. Female, 35-39, NSW payments
7| |creates opportunities for growth
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