COLLECTION SYSTEMS cost of cash management. CPS is a major player in that segment in Europe, and has the advantage of a well-featured device. The company says it is starting to see the adoption of this technology in the U.S., but it a slower pace than in Europe. The Crane bill recycler is the device of choice in the recent TVM tender award by Southeastern Pennsylvania Public Transit Authority (SEPTA), Philadelphia, PA. CPS is reporting an uptake of bill recycling in the metro segment, and hoping it will spill over into the bus segment at bus station TVMs. CPS believes Europe is ahead of the U.S. for a variety of reasons, but mainly its advanced infrastructure and the fact that historically, public transportation has been more popular in Europe, where they have better connected networks of metro, subways and buses. With such a deployed network, the commitment to spending on infrastructure and technology is much greater. The European public is mostly supportive of public transportation being a necessity and something that warrants
investment. Higher fuel costs in Europe also drive more people to public transportation.
Tokens could wane Since the 1990s if not earlier, there have been predictions of cash disappearing. The fact is, it probably won’t happen for a very long time, if it does at all. A 2011 report by the Federal Deposit Insurance Corporation (FDIC) categorizes the number of unbanked and underbanked Americans. The unbanked do not have bank accounts and deal only in cash. While the underbanked have bank accounts, their services are limited and they make fewer visits to bank branches. The report puts the combined unbanked and underbanked population at 28.3 percent of U.S. households. The number of unbanked households has actually increased since the recent recession. The struggling economy drove more people to cash as they ridded themselves of their credit cards and found their credit limits lowered.
Transit riders are more likely to use cash, especially given the relatively low the fare structure. There is a higher composition of cash-only transit riders than in the general economy overall. Tokens, on the other hand, may be a novelty that soon wanes in use and popularity. Transit tokens must be minted separately for each individual agency and are difficult to implement and maintain. There is really no reason to use tokens in agency with a good cash acceptance system. Tokens also provide easy opportunities for cheating. The Federal Reserve goes to extreme measures to ensure that currency includes security features that make it difficult to counterfeit. Tokens usually don’t come with such security features and are easily counterfeited. In addition, transit operators have to go through the pain of managing their own token system, sourcing it and then distributing the tokens. The question becomes: Why incur these additional overhead expenses? BR Bassam Estaitieh serves with Crane Payment Solutions as product manager for transportation.
Greyhound riders: Thank heaven for 7-Eleven Customers use PayNearMe to book tickets online and pay with cash at 7-Eleven Greyhound Bus Lines is now partners with its Dallas cohorts, convenience retailer 7-Eleven, Inc. and ACE Cash Express, in a nationwide program that essentially turns these neighborhood stores into Greyhound ticketing offices. According to a July 2012 Mintel Marketing study, 26 percent of Americans do not have a credit card. Greyhound says these consumers now have more options than a trip to a Greyhound terminal or the purchase of a prepaid debit card. Using PayNearMe™ technology, cash passengers can go to www.greyhound.com to select a schedule, print a payment barcode, take it to their nearest 7-Eleven store and purchase the ticket at the register. The selected travel itinerary is on a courtesy hold for 48 hours. Greyhound ticketing is available at more than 6,400 participating 7-Eleven stores and approximately 1,800 ACE Cash Express stores. “About 50 percent of Greyhound’s customers use cash to pay for their bus tickets,” says Dave Leach, president and CEO of Greyhound. “Until now there’s been no way to deliver exclusive online discounts to this constituency or even to allow these cus-
BUSRide
tomers to pay for tickets in advance by phone or online. This is our way of making life easier for our loyal cash customers.” According to PayNearMe CEO Danny Shader, his company operates under the premise that all consumers deserve the right to the same goods and services, regardless of their preferred method of payment or financial situation. “Our partnership with Greyhound and 7-Eleven provides unbanked and underbanked consumers with more fare options,” he says. “They also have discounts only available on Greyhound. com.” Leach says this partnership with PayNearMe and ACE Cash Express allows Greyhound to invite more customers to experience the safe, affordable and convenient experience. BR
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