Page 126 - Pay Magazine s2014

transit card segment of u.s. prepaid market
Mercator Advisory Group predicts growth for transit cards through 2016, reaching $15 billion.
$Billions
20
15
10
5
0
$12.9 $10.5 $11.1 $11.8
$15.3 $13.7 $14.5
2010 2011 2012 2013 2014* 2015* 2016*
source: Mercator Advisory Group *forecast
vertical opportunities
snapshot: prepaid transit Cards
transit cards for business and government
u.s. Dot transerve
The 2014 Paybefore Award Winner TRANServe Card disburses pretax transit benefits to government employees, providing secure access to their funds that are accepted by 568 transit authorities and van pools. The program, developed for the U.S. Department of the Treasury and U.S. Department of Transpor- tation by JPMorgan Chase and Visa, features a personalized Visa prepaid card automatically loaded with the approved transit benefit amount. In three years, the program has saved government agencies approximately $14.1 million, and more than 130,000 employees are using the card for public transportation.
WageWorks
WageWorks, a San Mateo, Calif.-based administrator of consumer-directed benefits, enables employees to save money using pre-tax dollars for their commuter expenses, while providing corporate tax advantages for employers. With Visa Inc. as one of several partners, WageWorks’ com-
muter programs include a catalog of more than 3,400 (and growing) select- able parking lot locations. Employees also have the option of adding their own parking provider to the catalog. The company also offers tickets, passes, smart cards, etc., from more than 650 transit operators in major U.S. metro- politan areas. As of Jan. 31, 2014, WageWorks offered more than 133,000 transportation products, and the company fulfills nearly 11 million commuter
orders each year, including passes, smart card loads, direct pay loads, parking payments, vanpool vouchers and commuter cards, to commuters and their employers.
a decade of oyster
Approximately 85% of journeys in London are paid using the Oyster prepaid transit smart card, according to Transport for London (TfL), the govern- ment body that manages London’s transit system. Oyster was introduced
in 2003.
In 2012, TfL began
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accepting contactless payments for fares on buses. In the first year, there
were more than 6.5 million taps using a contact- less card or mobile device. Last June, TfL introduced the “one more journey” feature for Oyster users riding London buses, enabling passengers to make one additional trip if they have a positive balance but insufficient funds for the journey. TfL said the feature quickly benefited an estimated 44,000 custom- ers a day. In July, TfL buses went cash free, meaning every bus passenger is using Oyster smart cards, contactless bank cards or paper tickets to travel on the London bus network.
London bus: Fedor Selivanov / Shutterstock.com