Thanks to the contactless parking revolution, “feed the meter” is set to join “dial the phone” and “broken record” in the dictionary of outdated idioms.
When mobile phones became popular, people stopped carrying around a couple of dimes for the payphone in case they needed to make an emergency call. Now, technological advances in the parking industry are eliminating the need to keep a cupholder of spare change so you can park on a city street.
Let’s talk about the benefits of contactless parking and payments and how they are changing the way that people park.
The Technology Behind Contactless Transactions
Contactless payments are wireless transactions where the user pays using a device or card without actually having to touch or hand it to another person or a machine. Some of the most common contactless payment methods include “tap to pay” technologies at the cash register and mobile wallets, such as Google Pay or Apple Pay.
Contactless transactions rely on a technology called Radio-Frequency Identification (RFID). This technology allows RFID “readers” to interact with devices or cards, called “tags,” via radio waves. Near-Field Communication (NFC) is a subset of RFID technology operating in a small area. Mobile payments typically rely on NFC technologies.
Drawbacks of Traditional Parking and Payment Methods
Parking comes in many different forms. Traditional city parking may be at coin-fed meters or in public lots with a paid parking attendant at the gate. At large events like concerts or attractions like the zoo, people might hand cash to someone at the entrance, and then other parking attendants flag them to the next available spot.
All these methods have a few drawbacks in common. One is the need to carry and transfer cash. With cash comes the potential for human error when making change. Carrying large amounts of cash poses a security risk for parking attendants and may even transmit infectious diseases (COVID was found to be largely spread via touch).
For parking operators, non-contactless payment methods mean higher labor costs and longer processing times to reconcile payments at the end of each business day.
Benefits of Contactless Payments For Customers
Customers benefit from contactless payments because transactions are safer, faster, and more convenient.
Contactless card purchases are expected to grow to about $11 trillion globally by 2027. A Mastercard poll in 2020 – during the height of the pandemic – found that nearly half of people surveyed expressed a preference for contactless payment methods.
In a 2022 VISA poll, consumers listed convenience as the top reason for using contactless payments. For parking, that convenience comes in the form of reduced stress for consumers.
Customers do not have to worry about having enough cash with them, and there is no need to carry around a ticket. Contactless options also make it easier for customers to track their expenses and handle business reimbursements.
Parking transactions at large events move more quickly when contactless payments are involved. Plus, many contactless parking systems allow customers to prepay for parking in advance.
Benefits of Contactless Payments For Parking Operators
Consumers enjoy the convenience of contactless payments, but parking operators also benefit from these technologies.
Some of the key benefits for parking operators include:
Explore Contactless Parking Solutions
Parking operators who take contactless payments need to be able to quickly, securely, and cost-effectively process transactions. Contactless solutions should be able to process mobile wallets, credit and debit cards, and EMV payments.
Mobile point-of-sale devices can streamline the parking process, while QR code-based systems can make transient parking a breeze.
Book a Demo With Our Team
ParkHub provides cutting-edge software and hardware solutions for the parking industry. These include many contactless payment options as well as real-time business analytics, yield management, and more.
Book a demo with our team to discover how we can help bring contactless payment solutions to your parking operations.