Transportation Payment Solutions Market Report 2025

The transportation payment solutions market size has grown rapidly in recent years. It will grow from $19.86 billion in 2024 to $22.04 billion in 2025 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to economic growth, globalization of commerce, smart city initiatives, urbanization trends, integration with transit systems.

The transportation payment solutions market size is expected to see rapid growth in the next few years. It will grow to $36.52 billion in 2029 at a compound annual growth rate (CAGR) of 13.5%. The growth in the forecast period can be attributed to contactless and mobile wallet growth, rise of autonomous vehicles, demand for real-time transactions, cybersecurity advancements, subscription-based models. Major trends in the forecast period include mobile ticketing and apps, integration with mobility-as-a-service (maas), open-loop payment systems, biometric authentication, blockchain for security, collaborations with financial institutions,.

The transition to contactless payments is anticipated to drive the growth of the transportation payment solutions market. Contactless payment is a new development in the point-of-sale payment system that eliminates the need for traditional cash or credit and debit card transactions. Transportation payment solutions refer to systems that facilitate digital contactless payments rather than cash transactions during transportation. With these solutions, users can conveniently pay for parking, tolls, and public transportation. For example, in November 2023, UK Finance, a UK-based association representing banking and financial services, reported that contactless card transactions reached 1.6 billion, amounting to £24.6 billion in August 2023. This indicates a 4.8% increase in volume and a 7.7% rise in value compared to August 2022. Therefore, the shift towards contactless payments is propelling the transportation payment solutions market.

The rising penetration of smartphones is expected to drive the growth of the transportation payment solutions market in the future. A smartphone is a multifunctional electronic device that integrates the features of a mobile phone and a personal computer. In transportation payment solutions, smartphones facilitate contactless payments, offering users convenience, speed, and flexibility in handling their transportation-related transactions. For example, a report from Cybercrew, a UK-based company specializing in cybersecurity solutions for businesses of all sizes, revealed that the percentage of UK households using smartphones reached 91.43% in 2021. This figure is anticipated to rise to 93.8% by 2026. Thus, the increase in smartphone penetration is contributing to the growth of the transportation payment solutions market.

Technological advancements are a significant trend gaining traction in the transportation payment solutions market. Leading companies in this sector are moving towards the adoption of digital technology. For example, in March 2022, Univasa, a Nigeria-based firm that specializes in innovative digital technology applications, launched Verify and Pay, a groundbreaking payment platform that digitizes the transportation payment process. The Verify and Pay app enables passengers to scan the barcode on a taxi to verify the driver's and vehicle's details, enter their destination to check and negotiate fares, and choose their preferred payment methods, such as card payments or USSDs. The goal of Verify and Pay is to transform Nigeria's transportation system.

Key players in the transportation payment solutions market are concentrating on innovative payment methods, including real-time payment solutions, which represent a significant advancement in modernizing payment processes. Real-time payment (RTP) solutions are electronic payment systems that allow for the instantaneous transfer of funds between bank accounts, available 24/7, 365 days a year. For instance, in April 2023, Conduent Inc., a US-based business services provider, launched pioneering digital payment solutions for tolling and other transportation applications. These solutions utilize the RTP network, a new payment infrastructure designed for faster, more secure, and transparent transactions. Additionally, it minimizes violation rates and late fees, enhances convenience, flexibility, and control over payments, accounts, and funds, and boosts revenue predictability and speed of collections.

In April 2022, VINCI Group, a France-based concessions and construction firm, acquired TollPlus for an undisclosed sum. This acquisition enabled VINCI Group to expand its portfolio of toll back-office systems, which will be employed in its strategy to develop free-flow highways. TollPlus is a US-based company that offers software product solutions for the transportation sector.

Major companies operating in the transportation payment solutions market are 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.

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. The countries covered in the transportation payment solutions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Transportation payment solutions are an integrated system facilitating digital contactless payments within transportation services, encompassing parking, tolls, and public transit fares.

These solutions comprise two primary components such as hardware and software. Hardware constitutes the physical elements of a computing system responsible for storing and executing software instructions. The principal systems within transportation payment solutions include electronic toll collection, electronic transit ticketing, and multimodal electronic payment systems. These systems incorporate diverse technologies like contactless payment systems, magnetic strips and barcodes, and near-field communication (NFC). Transportation payment solutions find application across various modes of transportation such as buses, car rentals, toll booths, and train services.

The transportation payment solutions market research report is one of a series of new reports that provides transportation payment solutions market statistics, including transportation payment solutions industry global market size, regional shares, competitors with a transportation payment solutions market share, detailed transportation payment solutions market segments, market trends and opportunities, and any further data you may need to thrive in the transportation payment solutions industry. This transportation payment solutions market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The transport payment solutions market consists of sales of transportation systems including electronic toll collection systems that use wireless technologies such as radio-frequency communication or optical scanning for vehicle toll collection. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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