Statistical estimates suggest that the total transaction value of digital payments worldwide will reach $8.49 trillion in 2022. This figure is projected to rise to $15.17 trillion by 2027.
With such a positive outlook, many industries are taking advantage of this opportunity to expand their transaction options and improve customer service by including digital payment methods. Among the industries that use such methods is the car parking space business.
What are the benefits of digital transactions for parking operations? Can such transactions improve the customer experience? How do digital transactions affect the revenue of a parking facility?
Readers will learn about the potential benefits of digital transactions or cashless payments for customers and car parking facilities.
Benefits of implementing digital transactions in parking facilities
Digital payment opens up new growth opportunities for the car parking industry. These benefits include higher accessibility, secure financial processing and better customer convenience.
provides high reach
With digital payments, customers are no longer limited to transacting using only cash or credit cards.
Digital methods, such as cryptocurrencies or digital wallets (e-wallets), help reduce or eliminate the need for cash handling.
With this advantage, drivers or car owners will not have to constantly scavenge their wallets or glove compartments for loose change when they pay for parking, thus improving efficiency.
With better access comes more choices for customers. Digital payments let car owners know that they can pay the parking fee in ways other than cash. This facility does not mean that customers can no longer pay in cash, but they can choose to pay by cashless methods whenever they want.
Ensures secure financial processing
By allowing the option to pay through cashless methods, parking facility operators can remove the need to collect and process cash, thus eliminating the risk of financial shrinkage.
Shrinkage is the inventory loss attributed to employee theft, cashier error, damage, administrative error and vendor fraud.
In addition, digital payments allow you to reduce or eliminate the costs and risks associated with cash management.
Although there is a potential risk of hacking and other cyber security challenges, parking facilities can mitigate this risk by implementing industry-standard security similar to those used by banks.
Improves customer convenience and satisfaction
Digital or cashless payment is convenient for paying parking fee as users just need a quick credit card swipe or some input on their mobile device.
This feature allows customers to reduce or eliminate their interactions with the teller or pay station, expediting the payment process. Additionally, some digital payment systems accept multiple currencies.
Cashless transactions allow car owners to pay parking fees without having to exchange their money with foreign currency or those whose e-wallets are not in the local currency.
For example, parking facilities that accept bitcoin or ethereum may allow customers to pay directly in that cryptocurrency, rather than converting it into local money.
Alternatively, let’s say you have foreign currency in your e-wallet and the parking facility also transacts in foreign currency. In that case, you can pay with that currency directly to the facility’s payment system.
Operating and maintaining a parking payment system that accepts digital payments is a significant investment for the operator. Despite the benefits, parking facility owners must determine whether such a system is profitable in the long run.
Parking operators should also understand their country’s IT (information technology) infrastructure and laws to determine whether digital payments for parking facilities are a viable solution.
1. The total transaction value in the digital payments segment is projected to reach US$8.49tn in 2022.