From New York to LA, public transportation is turning high-tech

Digital payments, facilitated by QR codes and card readers, allow passengers to access buses and train stations using apps or third-party payment systems, like e-wallets.

Mobile fare payments are becoming increasingly popular. Credit card company Visa reported it launched over 870 contactless payment projects on public transit systems globally through 2024. Contactless payment methods speed up the boarding process, eliminating the need to line up at ticket vending machines or count the exact change needed for bus fares. They can also lower the barrier to entry for infrequent users, who need to spend more time learning how the payment system works before they ride, potentially slowing down their transit journeys.

Using a contactless digital payment method also creates time-stamped, location-based ridership data for every trip, whereas farecards only collect information when bought or reloaded. For public transit agencies, having access to this large-scale data sheds light on how passengers use their systems and how they can better allocate service.

Many transit agencies have also adopted GPS technology on board buses and trains, allowing riders to track their real-time location and arrival times from their phones. Access to up-to-date information, instead of relying solely on static timetables, enables passengers to cut down on the time they spend waiting for the bus or train by timing it so they get there at the right moment. Over the past decade, multiple studies have found that real-time information increased passenger satisfaction and led to slight increases in transit use.

In many cases, QR codes have also become tools of accessibility. Cities like New York, Barcelona, and San Antonio have installed colorful tags by NaviLens that give visually impaired passengers and non-English speakers real-time arrival information. These codes are placed at bus stops and train entry points so an app can detect them and read audio directional cues to help passengers navigate unfamiliar transit locations like a sighted person would by reading physical signage.

As public transit becomes more high-tech, QR codes and e-wallets are becoming more commonplace. But some people might be left behind in the digital charge forward, particularly low-income households and older adults.

In 2024, a Pew Research poll found that 91% of American adults now own a smartphone—a number that's skyrocketed over the past decade. But, only 79% of people 65 and older have smartphones. While smartphone use is more popular than ever, some people concerned about reaching their data limit may prefer to navigate public transit offline.

Even when passengers have the opportunity to swap tickets for electronic payments, it doesn't mean people always can or want to use it. According to a 2023 Federal Deposit Insurance Corporation survey, 18% of households were unbanked or underbanked, making many transit users still reliant on cash payment systems to get around.

One 2019 study sponsored by the National Institute for Transportation and Communities found that around 30% of riders they served in Colorado and Oregon cities relied heavily on paying in cash when they boarded buses, particularly low-income and older adults. As QR codes and e-wallets become more popular on public transit, continuing to accept cash is equally essential to keeping public transit accessible.

QR codes and electronic payment systems also have the potential to increase the amount of personal data collected by transit agencies and the private companies they contract with to manage these digital transactions.

In 2019, the Surveillance Technology Oversight Project released a report expressing concerns that New York's OMNY system could threaten undocumented New Yorkers, collecting location information that law enforcement and immigration authorities can exploit. Transit agencies could quell fears of data collection becoming potentially abusive by setting clear guidelines for managing mobility data and publicizing them to passengers.

As public transit evolves through digital technology, passengers can navigate stations faster and more efficiently, and transit agencies gain a clearer picture of where service is most needed. While public transit advancements hit the digital age, policymakers must balance these transformations with the accessibility and data privacy concerns that come with them.

Story editing by Carren Jao. Additional editing by Elisa Huang. Copy editing and photo selection by Kristen Wegrzyn.