About 63% Commuters Indicate Debit, Credit Cards Convenient Fare Mediums For Transit: Report

A total of 63 per cent of commuters indicated that debit and credit cards are convenient fare mediums for transit, according to a report by Koan Advisory Group, a New Delhi-based public policy consulting firm.

The report titled “Transit Payments in India - A Case for Choice and Interoperability” stated that over 90 per cent of respondents use several modes of transit (such as autos and buses, along with metros) in the first and last miles of their journey. 

It added that over 60 per cent of them want to be able to choose the fare medium in transit payments. 

"Two in three respondents (including 70 per cent of millennials and GenZers and 87 per cent of international and interstate travellers) want to be able to use their debit /credit cards as one of the payment options on public transit," it added. 

Notably, two in three commuters say that incentives such as cashback offers, discounts and brand rewards will influence them towards a particular mode of payment.

Ateesh Nandi, Koan Advisory Group said, “India's public transit systems must evolve to provide integrated fare payment options that cater to the diverse needs of commuters. To address the challenges of India's fragmented transit landscape, it is essential to prioritise account-based ticketing systems that connect seamlessly with users' bank accounts."

Nandi added that this approach will not only enhance convenience for commuters but also pave the way for a more inclusive and modernised public transit system in India.

The report also highlighted that as commuters depend on more than one mode of transit, there is a need for end-to-end fare rationalisation and integrated ticketing across different modes. 

Further, payment infrastructure on public transit should be agnostic of the payment option used.