A list of 3 important factors you need to take into consideration before turning your Car Park cashless.

As fast as we are adopting technology in our businesses and everyday lives, we need to understand the scalability of technology and what fits your business best. Cashless Parking at shopping malls, airports, soho’s, business towers, etc are increasing within our region. Not only is it a national agenda to promote cashless usage, it is vital for businesses to reduce leakages, eliminate cash handling cost and automate car park systems in which Cashless Parking ticks all the boxes.

However, before jumping the bandwagon, here are 3 important factors to take into consideration.

Open Payments

Open Payments simply means the ability to accept ALL types of cashless payments that is in the market. Cashless payments generally uses these 4 technologies – contactless, contact, magnetic stripe and dynamic QR display. From debit, credit, loyalty, season pass and e-wallets, they generally fall under these 4 contact points.

So why is Open Payments important? Your car park facility will be the most convenient choice for motorist to park. According to a study, an average adult has 3 types of cashless payment – debit, credit, e-wallet. Limiting one or two payment options that is not scalable to onboard other forms of new payments will set your car park facility back in the years to come. Cashless payments are booming and if you’re not up to the latest trends, motorists will have the choice to park where it’s more convenient for them.

All-In-One Terminal

We know that a parking facility is made up of a parking barrier, ticket machine and maybe an autopay station. All these machines are built for minimal space consumption, aesthetically pleasing outlook yet functional. With the space constrains in existing parking machines, an all-in-one terminal not only embodies simplicity, it also presents itself as a single touch point for payments, ensuring your users are able to adopt this technology quickly without confusion. An all-in-one terminal can be plugged into any existing ticket machine and autopay station without interfering with your existing warranty and maintenance contract as it is a ready, universal plate provided by majority of parking machine providers.

PIN on Screen

The increase of cashless payments also means the regulations by Central Banks being tightened. Pin is a security measure to ensure the card holder is the verified user to avoid unauthorised usage or refunds. In Malaysia, prompting of pin happens when the card usage hits a RM250 usage or 6th time of usage in a single day. Or it can also be prompted according to the limit set by the card user which is as low as RM20.

This process is unavoidable in every industry cashless payment is used. So if you’re looking at season pass renewals or know that your customer spends high volume of payment transactions within your building, it is important to go for a cashless terminal that enables pin.

Operator Perspective – Traditional Parking System VS Cashless Parking System

Feature Traditional Parking Cashless Parking (Contactless Cards and LPR)
Payment Method Cash/coins or credit/debit cards, increasing labor costs Contactless credit/debit cards or mobile payment apps, reducing labor costs
Transaction Time Longer wait times, reducing revenue Faster transaction times, increasing revenue
Convenience Inconvenient for customers, reducing revenue Hassle-free payment experience, improving customer satisfaction and increasing revenue
Efficiency Increases costs due to errors and fraud Reduces costs due to automation and improved security
Ticket Saving Increases costs due to paper tickets and maintenance Reduces costs by eliminating paper tickets and machines
Revenue Increasing Reduces collection due to grace period (15 min) after payment/validation at Autopay System (APS) Increases revenue through removal of grace period – customers only pay when they arrive at exit barrier
Risk Reducing Increases risk of theft and fraud during cash-in-transit Improves security and financial safety with electronic payment settlement

In conclusion

If you are contemplating to turn our Car Park into a smart parking facility, go ahead! It’s about time you do so. Not only will you join the technological innovative era but you will be surprised by the increase of your parking revenue!

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