Benefits of Digital Payments for Parking Operations

Statistical estimates show that the total transaction value of digital payments worldwide will reach $8.49 trillion in 2022. This figure is projected to grow further to $15.17 trillion by 2027.

With such a positive outlook, many industries are taking this opportunity to expand their transaction options and improve customer service by incorporating digital payment methods. Among these industries that have utilized such methods is the car parking space business.

What advantages do digital transactions have for parking operations? Can such transactions improve customer experience? How do digital transactions affect a parking facility’s revenue?

Readers will learn about the potential benefits of digital transactions or cashless payments for customers and car parking facilities.

Source: Pexels

Advantages 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 improved customer convenience.

Provides Higher Accessibility

With digital payments, customers are no longer limited to transacting using cash or credit cards only.

Digital methods, such as cryptocurrencies or digital wallets (e-wallets), help minimize or eliminate the need for cash handling.

With this benefit, drivers or car owners won’t have to constantly scrounge their wallets or glove compartments for loose change whenever they pay for parking, thus improving efficiency.

With better accessibility comes more choices for customers. Digital payment lets car owners know that they can pay for their parking fees in ways other than cash. This feature doesn’t mean customers can no longer pay in cash, but they can opt to pay in 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 inventory loss attributed to employee theft, cashier error, damage, administrative error, and vendor fraud.

Furthermore, digital payments allow you to reduce or eliminate the costs and risks related to cash handling.

Although there’s the potential threat of hacking and other cybersecurity challenges, parking facilities can minimize 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 fees because users only need a quick credit card swipe or a few inputs on their mobile device.

This convenience allows customers to reduce or eliminate their interaction with a teller or pay station, speeding up the payment process. Additionally, some digital payment systems accept multiple currencies.

Cashless transactions allow car owners with foreign money or whose e-wallets are not in the local currency to pay the parking fee without exchanging their money.

For example, parking facilities that accept Bitcoin or Ethereum can allow customers to pay directly in that cryptocurrency rather than converting it to local money.

Alternatively, suppose your e-wallet contains foreign currency and the parking facility also transacts in forex. 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 payment 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 if digital payment for parking facilities is a practical solution.


References

1. Total transaction value in the Digital Payments segment is projected to reach US$8.49tn in 2022.

https://www.statista.com/outlook/dmo/fintech/digital-payments/worldwide

2. Shrinkage

https://www.investopedia.com/terms/s/shrinkage.asp

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to Top