United States
Gone are the days of the attended payment booth, coin-operated parking meter, and cash-only kiosk. Today’s parking industry runs on automated, sophisticated digital payments, reshaping the experience end-to-end for both operators and customers.
ISVs developing software for this $115-billion-and-growing global industry have an opportunity to integrate smart, innovative payment tools that delight customers and operators today. At the same time, they’re predicting and incorporating coming innovations to stay ahead of the curve. With the right partner in your corner, you will enjoy seamless, secure, and scalable integrated payments that drive revenue growth, improve operational efficiency, and enhance customer convenience.
Of course, most parking-industry ISVs already have a payment integration in place. But the question remains: Is your integration simply processing transactions, or is it strategically helping you grow and future-proof your business? Payroc is a payments partner empowering parking ISVs such as MacKay Meters and Parking Boxx with next-level payment solutions. We welcome you to this overview of the critical role of integrated payments optimization in parking application effectiveness and long-term prosperity.
Current Baseline Features for Integrated Payments in Parking
Too often, software developers and business owners across industries think of integrated payments as a transactional necessity rather than a strategic tool for growth. But the reality is that poorly integrated payments often throw up red lights, including abandoned transactions, increased operating and processing costs, and lost business. Well-integrated payments, on the other hand, greenlight the entire service blueprint by improving the user experience, heightening operational efficiency, and ultimately generating more profit.
In the parking industry, nimble yet robust payment processing can make all the difference. At a bare minimum, your payment integration must support:
- Full-spectrum self-service options, including mobile apps, QR-code payments (powered by hosted fields for secure, embedded transactions), and NFC-enabled kiosks.
- Frictionless transactions at kiosks and gates with EMV-compliant, contactless and digital wallet integrations.
- Automated rate adjustments (demand pricing) based on predefined rules.
- Real-time transaction updates as parking sessions approach expiration, extend, or end early.
- Flexible payment captures that accommodate pre-authorizations, incremental changes, and/or post-session billing.
- Subscription-based parking models, such as monthly permits and membership programs, which rely on automated recurring payments.
- Prebooking tools, allowing customers to reserve and pay for parking in advance via a mobile app or website.
Done well, these features meet customer needs and enable parking operators to maximize revenue. Done poorly, these features lead to customer dissatisfaction and attrition, lost revenue, and operational failure.
How Seamlessly Integrated Payments Drive Profits
When it comes to payments, today’s consumers have ever-higher expectations. They expect fast, frictionless transactions that welcome the payment methods they prefer, including mobile payments, contactless, digital wallets, in-app payments, and more. They also expect transparent pricing, proactive and timely payments-related communications, unbreachable security, and, when needed, excellent customer support.
Well-integrated payments drive profits in the parking industry by meeting and exceeding these customer expectations every step of the way. To that end, parking software ISVs should demand integrated payments that:
- Enable fast, hassle-free payments at self-service kiosks.
Many drivers park in a rush and don’t want to manually enter payment details at a kiosk. With integrated contactless payments, ISVs offer users a seamless experience in which they can tap their card or phone, pay instantly, and move on without delays. In turn, higher customer satisfaction rates deliver enhanced competitor differentiation, better loyalty, and optimized profitability. - Eliminate checkout friction for on-street and mobile parking apps.
Especially in busy or congested parking sites, checkout friction amplifies consumer stress. Instant payment methods, on the other hand, such as integrated digital wallets with Apple Pay or Google Pay, allow drivers to effortlessly pay within an app or at a meter, avoiding manual card entry and reducing abandoned transactions. As always, there is no surer revenue bet than a quickly captured payment. - Transform every transaction with true omnichannel.
Regardless of your parking software’s unique structure and use cases, true omnichannel payment capabilities will enhance profitability by seamlessly meeting every customer need, every time. There should be no payment type your payment integration cannot accept with equal ease. - Capture payments ahead of time.
Parking reservation systems capture customer payments in advance. Customers with parking reservations enjoy the seamless entry and exit as well as the peace of mind that comes with knowing their vehicle parking is already planned. Operators appreciate the increased lot utilization, predictability, and revenue. - Benefit from dynamic pricing opportunities.
Payment integrations with nimble algorithms can assist operators in automatically adjusting rates based on fluctuations in demand. It’s much easier to identify and take advantage of sweet spots in dynamic pricing with the right payments partner. Your parking operators can enjoy increased profits during special events and peak-demand hours while also optimizing revenue during low-demand windows. - Optimize recurring billing.
Monthly parking subscriptions and memberships require reliable recurring payment processing. Behind the scenes, account updater services should prevent failed transactions by automatically updating card details. Decline management tools help reduce involuntary churn and ensure predictable revenue. Even an incremental improvement in the rate of successful recurring billing captures can yield surprisingly impressive profit gains.
The bottom line is that exceeding parking customer payment expectations enhances the bottom line. And since these integrated payment services are available for the asking, parking software ISVs are wise to include them on their list of specifications and requirements.
Selecting the Right Payments Partner: More Things to Look For
When it’s time to consider a new payments partner, parking software ISVs have myriad choices. In addition to the payments features and capabilities mentioned above, we encourage you to carefully vet these additional must-haves:
Reliability
Ask about uptime metrics. A provider with 99.999% uptime ensures parking payments are being processed 24/7, 365.
Scalability
Regardless of your software’s current uses, there’s no reason not to insist on a scalable, centralized payment infrastructure that can easily handle multi-location and franchise parking operations. Consolidated reporting and analytics regardless of payment channel or location is also essential.
A Complete Menu of Integration Models
Look for the full range of options, including:
- API-first, enabling full control over the payment experience.
- SDK-based, simplifying the addition of in-person payments to existing software.
- Hosted solutions, providing PCI-compliant, secure hosted fields, and payment pages.
- Hybrid approaches, tailoring the payment integration based on your specific needs.
Customization and White Labeling
Payment flows with embedded UI/UX matching your software’s branding and customizable checkouts with tailored workflows supporting your operators’ business models and user preferences create a pleasing, seamless experience for end users.
Multiparty Payouts and Revenue Sharing
Parking operators, facility owners, and vendors often need revenue splits among multiple parties. A flexible split-funding solution automates revenue distribution, eliminating manual processing, reducing reconciliation headaches, and ensuring all stakeholders get paid correctly and on time.
Security and Compliance
Level 1 PCI compliance should be the default. Tokenization and encryption safeguard customer payment data, and fraud prevention tools help parking operators minimize chargebacks and disputes.
A Partner-First Approach
For parking software ISVs, the ideal integrated payments vendor backs the integration with dedicated technical and business support. Look for seamless onboarding, comarketing and revenue-sharing programs, and a collaborative go-to-market strategy. It’s not just about the technology—it’s about making sure the technology gets adopted, used, and continuously improved as needed.
Future-Proofing Parking Software with the Right Integrated Payments Partner
Today, the right partner can transform payments from a necessity into a competitive differentiator and profit driver. Tomorrow, the right payments partner can mean the difference between ongoing success and near-term obsolescence.
Just around the corner in parking industry payments are AI-driven fraud analytics, vehicle-to-infrastructure (V2I) payments, blockchain and digital currency acceptance, EV charging and parking bundling, voice-activated payments, augmented reality parking assistance, and other innovations. As an industry leader and innovator, Payroc not only has the integrated payments tools you need to succeed today, we also have a head start on the technologies you’ll need tomorrow. We invite you to schedule a demo today.