Payment Automation, mPayments Take Driver’s Seat In Parking Industry

Is scrounging the back seat for loose change about to become a nuisance of the past for urban drivers?

If the International Parking Institute’s (IPI) latest forecasts are correct, traditional parking meters operated by change may soon go the way of the payphone by falling victim to the smartphone. In the organization’s most recent report entitled “2013 Emerging Trends in Parking,” the IPI surveyed members of the parking industry, seeking the opinions of today’s professionals about what the future holds for drivers. And the respondents were clear: a mobile-lead payments transition is on the horizon.

While the move to capitalize on mobile payments is gaining traction across many major industries, some may be surprised that the parking industry and the municipalities that operate them – with their reliable, recession-proof product – are looking to so quickly offer the advantages allowed by smartphone technology.

But, just how quickly will this future come and what’s spurring the development? In this PYMNTS.com Data Point, we break down the IPI’s findings to show you what innovations are already being tested and which current goals may be tomorrow’s solutions.

The Future Of Parking Is Mobile

A majority of the respondents – 59 percent – cited the industry’s “move toward innovative technologies to improve parking access control and payment automation” as the most important trend in the sector. Likewise, another major ongoing development – rounding out the Top Three – was “the real-time communication of pricing and availability to mobile phones,” which grabbed 52 percent of the vote.

These mobile trends are two-sided in their goals, as the report suggests these updates will make it easier for drivers to find and pay for parking, thus enabling parking operators to collect more revenue.

Payment Options Continue To Expand

The second biggest prevailing trend in the industry, according to the report, is the demand among consumers for electronic payment, with 54 percent of survey takers saying this trend is having the greatest effect on the parking industry. This innovation is catching attention, as it is seen as a way to optimize the experience of patrons and contribute to the industry’s move toward sustainability. Still, major municipalities differ on how they’re putting this goal into practice.

As evidence, the researchers pointed to the diverse array of innovations that now allow drivers to pay for parking, such as the pay-by-phone alternatives that have already been installed to popular approval in Miami, Houston and Pittsburgh. More interestingly, is that some major cities are experimenting with more than one payment option.

For instance, Pittsburgh and Miami have also leveraged license plate recognition to power “pay-by-plate” meters. In the former city, 555 innovative parking spots allow drivers to register online and pay by credit card after punching in their plate number into a meter to purchase time.

The Nation’s Capital Leads The Way In Optimizing Parking Payments

While other major metros have seen success, Washington, D.C. was among the more innovative cities when it came to the payment options it provides drivers. The report indicates that the District Department of Transportation is experimenting with pay-by-cell and in-car meter payment options. The capital’s pay-by-cell program has so far proved popular, serving more than half a million customers who have completed more than 7 million transactions.

According to the researchers, the city’s program has been “the most successful of its type,” becoming a lucrative for the city by accounting for 40 percent of the city’s parking revenue. With such strong growth, it may not be long before other major cities follow Washington’s lead.

For more statistics and information, view the complete report here.