The dash from cash: can public transport providers balance the needs of staff and customers?

One of the unexpected repercussions of the coronavirus outbreak has been an increased use of card, mobile and contactless payments instead of cash. Concerns about handling money during the pandemic have prompted shops and public transport services to encourage customers to use contactless payment methods. However, many people relying on public transport to access work and health services have no alternative but to use cash.

A brief history of contactless payments

Contactless payments include credit and debit cards, key fobs, closed loop smart cards and other devices, including smartphones. These applications use radio-frequency identification (RFID) or near field communication (NFC) for making secure payments. An embedded circuit chip and antenna enable consumers to make a payment by holding their card or device over a reader at a point of sale terminal.

The first contactless payment was made available in the United States at the end of the 1990s. In the UK the first contactless cards were issued in 2007.

The UK’s public transport contactless revolution began in 2014, when it became possible to access London’s Tube network, Docklands Light Railway (DLR), London Overground and most National Rail services using only a bank card. By 2019, payments with contactless bank cards or mobiles made up 60% of all Tube and rail pay-as-you go journeys in London. Public transport authorities elsewhere in the UK have followed London’s lead.

The move towards cashless payments

Even before the current public health emergency, cash payments in the UK were in decline. In the past few years, there has been a shift towards the use of debit cards, while contactless payments have soared:

  • in the ten years up to 2019, cash payments dropped from 63% of all payments to 34%;
  • in 2017, contactless payments increased by 99% to 4.3 billion;
  • in the same year, 3.4 million UK consumers managed their spending almost entirely without using cash.
  • by 2028, forecasts suggest that fewer than one in 10 UK consumer payments will be made using cash.

The emergence of chip and pin, contactless cards, digital wallets and mobile apps has made many aspects of our lives much more convenient, notably when paying bills, purchasing goods and using public transport.

But although more and more people are moving away from cash payments, 2.2 million people rely almost wholly on cash – up from just 1.6 million in 2014. A Bank of England review in 2019 found that around eight million people  would find life “near impossible” without cash.

How Covid-19 is changing public transport

With high numbers of people in confined spaces and a large number of common touch points such as handrails and ticket machines, buses and trains are potentially high risk environments for Covid-19 transmission. At the same time, public transport is critical for sustaining the economy, and ensuring that people have access to shops, services, work and health care.

Public transport authorities around the world have been responding to the emergency in a number of ways, including increased disinfection and sanitisation, and encouraging physical distancing between passengers. Another key measure adopted by public transport bodies has been an acceleration away from cash payments and towards contactless and mobile ticketing.

While some bus operators have announced that they will no longer accept cash payments, others have warned that drivers could face disciplinary action if they refuse cash. Earlier this year, the trade union representing bus workers called for the abolition of cash payments on all UK buses to reduce infection rates among drivers.

Serving the ‘unbanked’

A recent webinar organised by Intelligent Transport explored the implications of the coronavirus public health emergency for public transport. One of the key points was that public transport operators now need to maintain a balance between protecting their staff while meeting the needs of passengers who may have no alternative but to make cash payments.

The webinar heard that there is a growing sense among public transport operators of a shift in perception concerning cash payments as a result of the global pandemic. However, cash payments remain vital for the 1.3 million UK adults who do not have a bank account (the ‘unbanked’), many of whom are on low incomes. Contactless cards may be unaffordable for lower-income passengers, while many unbanked passengers worry that contactless credit cards could lead to accidental overdraft.

As the webinar noted, public transport providers have been trying to overcome these obstacles. Some have continued to accept cash payments, while others have offered passengers their own prepaid cards that can be topped up with cash in shops or transport stations.

Final thoughts

It’s likely that public transport authorities will continue the drive towards cashless and contactless payment. Lower maintenance costs, speed and flexibility are some of the advantages provided by contactless applications, and transport companies can also benefit from the data on transport usage generated by electronic payment systems.

However, the migration from payments using physical money risks leaving over a million UK citizens behind. In the ‘new normal’ for a world living with the coronavirus, transport organisations will have to find innovative ways to balance the safety of their staff with the needs of their passengers.


Further reading
Articles on public transport on The Knowledge Exchange blog

Follow us on Twitter to see which topics are interesting our research team

The Knowledge Exchange remains open for business and continues to provide current awareness and enquiries services to our clients. If you have any questions, please get in touch.

The 5G arms race: the UK’s strategy to become a global leader in 5G technology

By Steven McGinty

On 8 March, the UK Government published their strategy for developing 5G – the next generation of wireless communication technologies.

Released on the same day as the Spring Budget, the strategy builds on the government’s Digital Strategy and Industrial Strategy, and sets out the government’s ambition to become a global leader in 5G.

Accelerating the deployment of 5G networks, maximising the productivity and efficiency benefits to the UK from 5G, creating new opportunities for UK businesses, and encouraging inward investment, are the strategy’s main objectives.

If the UK makes progress in these areas, the strategy argues, 5G infrastructure has the potential to become an enabler of smart city technologies, such as autonomous vehicles and advanced manufacturing, and to support the expansion of the Internet of Things – the interconnection of people, places, and everyday objects.

5G Innovation Network

Although the strategy highlights the enormous potential of 5G, it makes clear that 5G technologies are still in development, and that the majority of funding will need to come from the private sector.

To support the growth of a commercial market, the strategy explains, a new 5G trials and testbed programme will be introduced – through a national 5G Innovation Network – to coordinate the development of 5G services and applications. This programme will help government and private sector partners understand the economics of deploying 5G networks, ensuring that technologies can he delivered in a cost-effective way, and enabling best practice to be captured and knowledge disseminated.

The government is investing an initial £16m into the programme (involving partners such as UK Research and Innovation and the Government Digital Service), and has targeted a trial of end-to-end 5G (high speed connectivity without the need for intermediary services) by 2018. In February, Ericsson announced that they had a successful end-to-end 5G trial in Sweden, alongside partners SK Telecom Korea.

Improving regulations

To support the development of 5G, the strategy suggests that there may need to be regulatory changes, particularly in the planning system. As such, the government has committed to reviewing current regulations before the end of 2017, and then to conduct regular reviews, as partners learn more from their 5G trials.

Local connectivity plans

The strategy highlights the important role local regions play in the deployment of mobile technologies, and explains that the government will be consulting with councils on how planning policies can be used to provide high quality digital infrastructure.

However, it also suggests that there may be a case for introducing ‘local connectivity plans’, which would outline how local areas intend to meet their digital connectivity needs. Interestingly, the strategy highlights that evidence, such as local plans, may be taken into account when the government is making funding decisions for local infrastructure projects.

Coverage and capacity, infrastructure sharing, and spectrum

The strategy accepts that the move towards 5G won’t be as straightforward as the move from 3G to 4G. Instead, 5G technology will be developed alongside the expansion of the 4G network.

In addition, the government has accepted the recommendations of the National Infrastructure Commission (NIC)’s ‘Connected Future’ report, which states that unnecessary barriers to infrastructure sharing between telecommunications companies must be tackled. The strategy states that it will explore options for providing a clearer and more robust framework for sharing.

Increasing the available radio spectrum was also highlighted as key to developing 5G technology. The strategy notes that the government will work with Ofcom to review the spectrum licensing regime to help facilitate the development of 4G and 5G networks.

5G strategy’s reception

Natalie Trainor, technology projects expert at law firm Pinsent Masons, has welcomed the new 5G strategy, explaining that:

“…technology and major infrastructure projects will become much more interlinked in future and that the plans outlined can help the UK take forward the opportunities this will present.”

In particular, Ms Trainor sees the establishment of the Digital Infrastructure Officials Group – which will bring together senior staff from across departments – as a way of providing greater awareness and co-ordination of major public projects that involve digital infrastructure. Ms Trainor also hopes that the new group will encourage the Department for Transport and the Department for Culture, Media & Sport (DCMS) to work with industry to develop digital connectivity on the UK’s road and rail networks.

Professor Will Stewart, Vice President of the Institution of Engineering and Technology, similarly welcomes the new strategy but highlights that the funding announced will ‘not come anywhere close’ to the investment required to deliver 5G across the UK. In addition, he also makes it clear that coverage and regulatory change will be vital, stating that:

The biggest challenge for government will be improving coverage for all, as 5G cannot transform what it doesn’t cover. And achieving universal coverage for the UK, outside high-capacity urban areas, will not be affordable or achievable without regulatory change.”

Former Ofcom director and author of The 5G Myth, Professor William Webb, has also applauded the government’s plans, even though he is an outspoken critic of the 5G industry. For Professor Webb, the strategy recognises that we are in the early stages of 5G technology, and that there is still a need to develop 4G networks.

Final thoughts

5G technology provides the UK with the opportunity to become a genuinely smart society. Yet, as the strategy acknowledges, 5G is still in its infancy and the idea of a 5G network across the UK is a long way down the road.

The new 5G strategy includes a number of positive steps, such as listening to the recommendations of the NIC report, and exploring the realities of deploying 5G networks. This cautious approach is unlikely to show any significant progress in the short term, but does provide a focal point for academia, government, and industry to rally around.


Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other smart city articles.

What technology brings to health and social care: a case study of Calderdale and Idox

 

By Steven McGinty

In the second of our articles on health and social care and technology, we‘re going to look at the advantages of using technology, as well as a case study of an innovative partnership between Calderdale Council and Idox.

The ‘Digital working, learning and information sharing’ strategy, developed in partnership with the adult social care sector, identifies three areas where technology would bring a number of benefits:

  • working directly with those who need care and their carers;
  • supporting the learning and professional development of staff;
  • organisational business support and information management systems.

The use of electronic notes, for instance, would be a simple step that would have a significant impact on homecare workers (highlighted in section 5 of the Burstow Commission report on the future of the home care workforce).  At the moment, care workers usually make handwritten notes and leave them in a book in someone’s home.  However, if care workers moved from handwritten notes to electronic notes, information could be shared more easily. This would mean that care managers and families would be able to monitor an individual’s care and conditions remotely.

Organisations have also seen the advantage of incorporating e-learning into staff development.  The Skills for Care ‘Digital capabilities in social care’ report found that 95% of organisations used e-learning courses to support staff development, particularly in administration-related areas, such as health and safety and fire training. For instance, instead of sending staff on full day training sessions, e-learning courses can be completed by staff in an hour, offering greater efficiency and flexibility.

However, the report also highlighted that social care related e-learning courses, which looked at issues such as dignity and respect, were of ‘variable quality’ and not able to compete with the experience of face-to-face and group learning. Therefore, it’s possible that an opportunity is being missed by education and training providers, as technology should be able to provide better solutions than the simple tick box exercises described in the report.

Interestingly, the report also suggests this might not be too far off, as one of the organisations revealed that they were looking at more interactive options and were currently working on a research project with a university in Greece, which focused on the idea of ‘gamification’.

One local authority that’s certainly tried to capitalise on the benefits of technology is Calderdale Council. The council has developed an innovative case management tool to support their day-to-day work, in areas such as child protection, looked after children, and fostering and adopting. Parveen Akhtar, Early Intervention Service Manager, at Calderdale Council explains that:

“The Child Social Care solution was created in partnership with schools, health and police. Providing an intuitive system to meet the requirements of front line social care practitioners, it enhances our ability to provide better services to families within our community.”

The Child Social Care solution creates a single view of a child through combining information from several sources into one record. This means that practitioners are able to create, access and share information easily and securely, supporting informed decisions and putting in place appropriate support for children and their families.

The system has a number of benefits and features, including:

  • improving multi-agency communication and response;
  • reducing the amount of time taken by practitioners to locate another agency involved in a child’s case;
  • enabling practitioners to access information remotely;
  • offering comprehensive performance and reporting tools for providing vital statistics;
  • providing the ability to monitor and track the progress that children and families are making.

Calderdale have teamed up with Idox, a specialist in providing technology, content and funding solutions to government, and are now offering their system to other local authorities. The partnership has already proven to be successful, with Calderdale and Idox providing their solution to councils in the Isles of Scilly and Leeds.

Over the coming years, health and social care will be facing ever greater demands with tighter budgets. For this reason, technology is going to be essential to support better outcomes and more efficient services.  It is therefore important that a strategic approach is taken concerning information technology, and that organisations look at its long term benefits, rather than the short term savings from cuts to investment.

The first article on health and social care and technology, “What’s preventing health and social care from going digital?”, can be found here.

Further reading: