What Is The Current and Historic Market Size Analysis Of The Transportation Payment Solutions Market?
The transportation payment solutions market has seen considerable growth due to a variety of factors.
• The market size for payment solutions in transportation has seen swift expansion recently. This market is projected to escalate from $19.86 billion in 2024 to a whopping $22.04 billion in 2025, recording a compound annual growth rate (CAGR) of 10.9%. Factors such as economic expansion, commercial globalization, initiatives for smart cities, urbanization patterns, and integration with transit systems have fueled growth in the earlier period.
What Is The Forecast For The Transportation Payment Solutions Market Size In The Coming Years?
The Transportation Payment Solutions market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipations are high for the transportation payment solutions market to experience significant expansion in the forthcoming years. The market is projected to reach $36.52 billion by 2029, growing at a compound annual growth rate (CAGR) of 13.5%.
This anticipated progress during the forecasted period can be credited to the expansion of contactless and mobile wallet functions, the emergence of self-driving vehicles, the need for instant transactions, advancements in cybersecurity, and the popularity of subscription-based models. Noteworthy trends for the projected period comprise mobile ticketing and applications, integration with mobility-as-a-service (maas), open-loop payment platforms, biometric validation, the use of blockchain for enhanced security, and partnerships with financial institutions.
What Are The Essential Drivers Behind The Growth Of The Transportation Payment Solutions Market?
The transportation payment solutions market is likely to be driven by the move towards contactless payments. Contactless payment, a recent advancement in point-of-sale transaction systems, eliminates the conventional requirements for cash or credit or debit card transactions. These solutions are used as an alternative to physical money during transportation for payments related to parking, tolls, and public transit. For example, UK Finance - an association of banking and financial service industries in the UK - reported that in November 2023, contactless card transactions hit 1.6 billion, amounting to £24.6 billion in August 2023. This is an increase of 4.8% in volume and a rise of 7.7% in value when compared to August 2022. Consequently, the shift in use from conventional payment methods to contactless ones is propelling the transportation payment solutions market.
How Is The Global Transportation Payment Solutions Market Divided Into Key Segments?
The transportation payment solutions market covered in this report is segmented –
1) By Component: Hardware, Software
2) By System: Electronic Toll Collection, Electronic Transit Ticketing, Multimodal Electronic Payment
3) By Technology: Contactless Payment System, Magnetic Strip And Bar Coding, Near Field Communication
4) By Application: Bus, Car Rental, Toll, Train
Subsegments:
1) By Hardware: Payment Terminals, Contactless Payment Devices, Ticketing Machines, Self-Service Kiosks, Mobile Devices
2) By Software: Payment Processing Software, Mobile Wallet Applications, Ticketing And Fare Collection Systems, Fraud Detection And Security Software, Analytics And Reporting Tools
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What Trends Are Reshaping The Future Of The Transportation Payment Solutions Market?
The rise of technology is a predominant trend in the market for transportation payment solutions. Major players in this sector are moving towards digital technology. For instance, Univasa, a Nigeria-based firm offering cutting-edge digital technology applications, introduced Verify and Pay in March 2022. This innovative platform digitizes the transport payment procedure. The Verify and Pay app facilitates passengers to scan the taxi's barcode to validate the driver's and vehicle's information, enter their destination to examine and discuss fares, and choose their preferred payment option like card payments or USSDs. Verify and Pay aspires to revolutionize Nigeria's transport system.
Who Are the Key Players In The Transportation Payment Solutions Market?
Major companies operating in the transportation payment solutions market include:
• Mastercard Incorporated
• Visa Inc.
• American Express Company
• PayPal Holdings Inc.
• Stripe Inc.
• Square Inc. (now Block Inc.)
• PayByPhone Technologies Inc.
• ParkMobile LLC
• RideAmigos Inc.
• Cubic Corporation
• Conduent Incorporated
• Transit App Inc.
• AccuFleet International Inc.
• Gimme Inc.
• Moov
• Masabi Ltd.
• Clever Devices Ltd.
• Fleetcor Technologies Inc.
• Tpay
• EasyPark Group
• Citymapper Ltd.
• Yugo Inc.
• Kaptain Inc.
• Zubale
• GoKid Inc.
• TixnGo
• Transit Tech Inc.
• HopSkipDrive Inc.
• Waymo LLC
• Blyncsy Inc.
What Are The Regional Insights Into The Transportation Payment Solutions Market?
North America was the largest region in the transportation payment solutions market in 2024. Asia-Pacificis expected to be the fastest-growing region in the forecast period. The regions covered in the transportation payment solutions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
