For parking facility managers, choosing the right payment options for their location is essential. This decision often leads to a key question: should cash payments still be offered, or is a fully cashless system the way forward? In this article, we’ll explore both approaches — running parking facilities with and without cash — and weigh the pros and cons of each.
Table of contents
1. Modern payment methods & today's customer expectations
2. Common payment options for paid parking
3. Advantages of cash-based parking management
4. Advantages of cashless parking management
5. Which option is best for your car park?
Modern payment methods & today’s customer expectations
Parking management involves many important considerations, with payment methods being a key question. Today, there are numerous modern and convenient alternatives to cash, including contactless card payments as well as options like Google Pay and Apple Pay.
Customers today not only expect cashless payment options — they consider them a given. Whether shopping, dining, or parking, cashless payment methods have become the norm.
Since the COVID-19 pandemic, cashless and contactless payments have become a regular part of daily life, with transaction volumes growing each year. Clearly, cashless payments represent the future, and this trend extends to parking facilities. An increasing number of parking locations are adopting cashless systems.
Approximately 50% of transactions at Arivo facilities throughout the DACH region are conducted using Google Pay or Apple Pay, whether online or at on-site payment terminals.
Would you like to learn more about how your car park can be managed cashlessly with Arivo? Feel free to get in touch with us! Contact Arivo now
Common payment options for paid parking
Below you can find common cash and cashless payment options for car park operators:
- Cash payment with coins and banknotes (at the ticket machine)
- Card payment via debit or credit card (at the ticket machine or exit column)
- Contactless payment via smartphone (e.g., with Google Pay or Apple Pay)
- Online paymentAutomatic payment collection (for registered customers/contract customers/season parkers)
- pay per use
- flat-rate billing
- Parking Apps (EasyPark & Parkster)
If you have any inquiries about Arivo's payment systems, don't hesitate to reach out. We can discuss your needs together. Contact Arivo now
Advantages of cash-based parking management
1. Greater choice of payment options for customers
When cash payment is accepted alongside cashless options, it provides the maximum freedom of choice to your customers.
Cash remains particularly popular in the DACH region, in rural areas, and among older or less tech-savvy individuals.
Many parking customers have become accustomed to paying with cash, not because they insist on using cash, but to clear small change from their wallets.
2. Anonymity
Cash also offers a degree of anonymity.
Advantages of cashless parking management
Cashless payment systems offer numerous benefits over traditional cash solutions — they simplify operations and increase customer satisfaction. Here are the key advantages of cashless parking management:
1. Lower administrative effort
One of the main advantages of a cashless parking system is the significantly reduced administrative effort in operations. Tasks like restocking change, emptying machines, and manually depositing cash at the bank are completely eliminated.
A good example of this is the parking management at Alte Mühle in Ramsau. You can read the full reference story here: RVB – Ramsauer Verkehrsbetriebe.
2. No disposal costs
Cashless parking management significantly reduces disposal costs associated with handling cash for transport, security, and banking fees. These costs typically range between 1-5% of the deposited amount. By operating cashlessly, parking operators not only increase their efficiency but also lower their expenses.
3. Lower maintenance requirements
Cashless systems don’t require coin mechanisms or other prone-to-failure mechanical parts needed for handling cash. As a result, maintenance costs and machine downtime are significantly reduced. For the congress center in Schladming, it was also essential that cash payments did not lead to extra maintenance costs.
4. No theft risk
Unlike cash machines, which are a common target for theft at parking areas, cashless systems remove the incentive for break-ins. This improves security and reduces potential losses.
5. Lower initial costs
Cashless payment terminals are often cheaper to purchase. Cash machines, on the other hand, require a more secure construction with reinforced locks and durable casings, which drive up costs.
6. Faster payments & reduced risk of queuing
Card payments are significantly faster: just tap, enter a code if needed – done. In contrast, cash requires fumbling for coins, which takes time and can even lead to longer lines at the machines. The ease of use streamlines operations and enhances the user experience.
The operators of the Geisskopf cable car also appreciate that guests no longer have to queue at the payment machines at the end of their visit.
Would you also like to manage your parking areas cashlessly with Arivo? Feel free to contact us!
What's the best option for your parking facility?
Every parking facility has different requirements. When deciding whether to offer cash or cashless payment options, it's crucial to consider how widely cashless payments are accepted in your area.
The benefits of modern cashless payment options are clear for both car park operators and parking customers. As an operator, you should consider whether the extra options for customers are worth the added operational effort and costs.
At the very least, focusing on digital, cashless payment methods can reduce the number of cash machines on the premises.
Not sure whether to fully switch to cashless parking management? We’re happy to advise you. Together, we can discuss your requirements and find the right solution. Contact Arivo now!
Conclusion
Card payments and mobile options like Google Pay and Apple Pay have become second nature for many customers, with a clear trend toward cashless transactions.
Parking customers benefit from a faster, more convenient payment process, and cashless systems offer multiple advantages for operators:
- By eliminating cash, time-consuming tasks like refilling change, balancing tills, and making manual bank deposits are no longer necessary. Disposal costs are also entirely eliminated.
- Maintenance needs are reduced since cashless machines have no coin jams or moving parts prone to malfunctions.
- The risk of theft is minimized with no cash on-site, and cashless machines are also more affordable to purchase.
Although the benefits of cashless parking management are substantial, there may still be situations where a cash option is useful. However, by encouraging digital, cashless payment methods, operators can significantly reduce the number of required cash machines.
Not sure whether cash or cashless is right for your facility? We’d be happy to advise you to find the ideal parking system for your needs. Contact Arivo now and request an offer!
