I think I can take both sides of this battle.
First — It is possible that paying by debit card is cheaper, but then you have to figure the cost of having your money tied up on the card…
Second — Sure, you have to pay a few cents for the cell call, but unless you have a plan that’s really bogus, you don’t use all your minutes (unless you have teenagers, but that’s another story.)
Third — Yep — Pay by Cell costs more, unless the city opts to pay the fees in the model put forth by Thomas in his argument below. Then the only cost is the cost of a call…
Yes, its true that getting the text message does cost a few pennies, but then you can make the decision as to whether or not to have the text message sent to you. Its your option, and isn’t all this about just that, options.
I do agree that most of us are used to using cards to pay for the "stuff" we buy, and to use a card is simple, quick, and convenient.
I also agree that if its 30 below of 115 above I would rather sit in my warm (or cool) car and deal with my parking payment than go out and screw around with a P and D in the cold (or heat).
The US is not a cell phone society, but Europe and Asia are. We are moving that way, fast. As soon as this generation is old enough to drive, you will see them pleading with cities to install Pay by Cell.
I just reread this, and whoops, it looks like I came down on the side of the Cell Phone Guys.
Actually, however, what I really believe in is choice. If Bill wants to use a card, more power to him and if JVH likes to use his cell, so be it.
At this point, it seems to me that the wise city has as many different payment methods as possible, pay and display, meters, pay by space, in car meters, automated permits, pay by debit, credit, or pay by cell. Depending on who you are, where you are, and what your requirements are, you can use whatever fits your needs.
UPS may find that debit cards are perfect, however a visitor to the city may want to pay cash, or use a credit card, while a salesperson or technonut may believe that pay by cell or debit card is the way to go.
My guess is that the successful companies are those that will merge these technologies and bring an array of payment methods to the parker. They are not mutually exclusive.
If this were the private sector, that’s exactly what would happen, says me.
JVH
One Response
After reading that all I have to say is that we are all clearly selling something, and that is good:)
But I have to opine on the debit card comment. It doesnt tie up your money, it holds it securely, is safer than cash, and quite liquid. And it doesnt require revealing your personal life story to get an account, nor a great credit rating. And when you use it your bank cant charge you interest or surcharges of $10 for a $2 parking meter debit per DC yesterday. Furthermore, identity theft is the number one security concern among consumers today and debit cards avoid that problem entirely.
Public/private partnerships are the wave of the future and will bring the end game value to this business in 2011. I agree the consolidations will begin sooner than later. I think it will all be in process in 2010 and done by the end of 2011.
Keep your eyes out for the largest SS RFP from a major city in years…..so much for the rapid adoption of new technology replacing the old quickly. But I bet simple SS meters that work with cards, coin, and cell phones?, will still be out there doing its job everyday for Joe Public end of day here in NA, it will just look more like a PDA than an old parking meter. Cities could require non-cash payments as they have done in Europe for years. It will probably accept contactless wave cards too.
Finally, the banking industry will determine who wins among the payment players because they own the pay by cell phone payment gateways, and the gateways for P&D, so if they dont like what is going on, they will shut it down easily since they have the right to set the pricing. Imagine if they surcharge every pay by cell phone transaction too on top of the other fees?
Good luck everyone it is going to be a sprint over the next five years and we may very well end up in unique partnerships.
JR