Global Transit Cards Market Is Anticipated To Witness High Growth Due To Growing Adoption Of Multi-Application Transit Cards

Transit Cards Market

Transit Cards are a great way to save money on commuting costs. They are available for purchase at a variety of locations including ticket windows, ticket vending machines (TVMs), online, or through a phone call. Some commuter benefit plans also offer a prepaid card, which can be used to pay for eligible transit purchases. A commuter benefit card is a prepaid card that participants use to access their commuter benefit plan funds at the point-of-sale for eligible workplace mass transit and parking expenses. These cards are usually an eTRAC(r) Prepaid Mastercard or Beniversal(r) Prepaid Mastercard depending on the program set up with your employer. 

Many transit agencies have begun using automated fare collection systems to collect fares from passengers. These systems often provide detailed data that can be used to improve the performance of the transit network. These include schedule adherence, vehicle-kilometers, and person-kilometers for individual runs, routes, or days. The use of smart card systems is increasing in the public transportation sector. These systems collect revenue and also provide data that is useful for transit planners and researchers.

Market Dynamics:

Growing technological advancements are estimated to augment growth of the global Transit Cards Market over the forecast period. For instance, Paytm Payments Bank Limited and the Mumbai Metro One Private Limited announced their partnership in September 2022, for launching a new Paytm Transit Card. The all-in-one card can be used for paying in Mumbai metro, trains, buses, it can also be used for paying parking charges and at toll plazas. Moreover, rising demand for new payment methods is anticipated to restrain growth of the global transit cards market over the forecast period.

Impact of COVID-19:

The pandemic was first reported in 2019 in China and later on it was transmitted to more than 100 nations globally. The World Health Organization declared the pandemic as a global public health emergency in 2020. Many nations like the US, India, Russia, Australis, UAE, the UK and many more imposed strict nationwide lockdowns to prevent further spread of the virus. The pandemic also led to imposition of strict travel restrictions, which hampered several businesses. Travel bans were imposed in many countries. These travel bans led to banning import and export activities. These also affected the Transit Cards Market as transportation was banned. Thus, the global transit cards market witnessed decline in demand during the pandemic.

Key Takeaways:

The global Transit Cards Market is expected to witness high growth, exhibiting CAGR of 7.2 % over the forecast period, due to increasing acquisitions by key players. For instance, a global security technology group Giesecke+Devrient acquired Valid USA, a payment and identity solutions business in June 2022. With this acquisition they are aiming to accelerate their growth in the U.S markets.

North America is anticipated to witness significant growth in the global Transit Cards Market over the forecast period, owing to growing presence of key players and growing acceptance of transit ticketing in rail transport.

 

Major players operating in the global transit cards market are Watchdata Group, 4G Identity Solutions Private Ltd., Thales Group, Beijing Watchdata Co. Ltd., Infineon Technologies AG, Cardlogix Corporation, Giesecke & Devrient GmbH, Eastcompeace Technology Co. Ltd, and Entrust Corporation