Congestion-free traffic drives growth of e-payment system
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Electronic payment system for transportation market segments and key trends 2016-2026 by Future Market Insights (FMI), provider of syndicated research reports, custom research reports, and consulting services.
Electronic payment System (EPS) is useful for paperless monetary transaction. It brought a revolution in business process with less paper work, less time consumption, low labor cost as compared to traditional manual process business.
There are various modes of electronic payments such as debit card, credit card, e-wallet, smart card, EFT and others. From last a few years electronic payment has also been used by transportation agencies for the collection of parking fees, highway tolls, transit fares & others.
Electronic payment in transportation is done with the help of cards or transponders carried by user which directly communicates with devices maintained by transportation agencies for the conduction of transaction and also to track the records.
Its use gives rise to so many advantages as electronic toll collection supports the collection of toll fare automatically by reading the data of registered vehicle from electronic transponder and driver does not need to slow down the car or stop for the payment hence it gives relief from traffic congestion and also save time of the commuters.
Market Dynamics
The key trend responsible for the growth of global electronic payment system for transportation is the growing demand of electronic payment system for transportation from developed and developing region because of the advantages provided over the traditional manual system.
The key growth drivers are congestion free traffic, with implementation on highway or Broadway, traffic jam or congestion reduces. Cashless travel facility is another advantage.
On the other hand there are also some factors which are hindering the growth, those restraints are high installation cost of the systems & slower growth of these systems in underdeveloped regions.
“The key growth drivers are congestion free traffic, with implementation on highway or Broadway, traffic jam or congestion reduces.”
Segmentation
Segmentation is done on the basis of system, technology & geography. On the basis of system, it is segmented as electronic toll collection (a system designed for automated collection of toll from moving as well as stopped vehicle through wireless system), electronic transit ticketing (payment is done by a smart card for a trip on transit vehicle), and regional multimodal electronic payment system (Here all mode of transportation is done by single payment system).
On the basis of technology, it is segmented as contactless payment system technologies, near field communication, using smart phones.
Geographically, it is segmented into seven regions which are ; North America, Latin America, Western Europe, Eastern Europe, Japan, Asia Pacific Excluding Japan (APEJ), and Middle East and Africa (MEA). Among all the regions North America is the highest contributor in term of revenue in global electronic payment system for transportation market followed by Asia Pacific & it is expected that in near future, Asia Pacific is going to lead this market.
Key Players
Xerox Corporation, Cubic Transportation Systems, Transcore, LP, Siemens AG, Thales Group and others are leading the global ETC market. Electronic Transit Ticketing market is covered strongly by Cubic Transportation Systems, Global Mass Transit, Snapper Services Ltd, EOS UPTRADE, Scheidt & Bachmann. On the other hand, Electronic Payment System market is been covered by LTK Engineering Services, Longbow Technologies Sdn. Bhd., Kapsch Trafficom AG & others.
Questions & Answers
Q.What are the main advantages of using electronic payment systems in transportation?
What are the main advantages of using electronic payment systems in transportation?
Electronic payment systems offer benefits like less paperwork, reduced time consumption, and lower labour costs compared to manual processes. They also help reduce traffic congestion by allowing automatic toll collection without drivers needing to stop, saving commuters time.
Q.Which factors are hindering the wider adoption of electronic payment systems for transportation?
Which factors are hindering the wider adoption of electronic payment systems for transportation?
The main factors impeding growth are the high installation costs associated with these systems. Also, the slower rate of growth and adoption of these technologies in underdeveloped regions is also a significant restraint.
Q.What are the different ways electronic payment systems for transportation are categorised?
What are the different ways electronic payment systems for transportation are categorised?
Segmentation is based on system type, technology, and geography. Systems include electronic toll collection, electronic transit ticketing, and regional multimodal systems. Technology covers contactless payment, near field communication, and smartphone use.
Q.Which geographical region is currently the largest contributor to this market, and which is expected to lead in the future?
Which geographical region is currently the largest contributor to this market, and which is expected to lead in the future?
North America is currently the highest contributor in terms of revenue for the global electronic payment system for transportation market. However, Asia Pacific is expected to lead this market in the near future.
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