Preferred ways to pay for parking

More than half of people who pay for parking prefer to do so by card, rather than with cash – a trend that looks likely to increase, according to a survey commissioned by payments experts Elavon.

In an online survey across the UK, 57% of respondents who pay for parking prefer to pay by credit or debit card. Meanwhile, 31% favour cash and 13% have no preference.

Among younger drivers, the preference for card payments is significantly higher. For the under 35s, 77% of drivers prefer to pay by card, in contrast to just 17% opting for cash. Among 35-54 year olds, almost two thirds (60%) prefer card, with a quarter (26%) wanting to pay by cash. 

By contrast, almost half (48%) of those aged over 55 prefer to use cash, with 36% wanting to use cards. 

Parking is big business in the UK and Patrick Doherty, Head of Emerging Markets at Elavon, works with many of the major providers.

Offer parking customers a choice in payments

“The fact that younger people are so firmly in favour of using a card to pay for parking, rather than having to carry cash around with them, suggests this is a trend that’s only going to head in one direction,” he said.

“That’s not to suggest we should abandon one in favour of the other: it’s better to offer your customers a choice. But if you’re not taking card payments, you’re literally driving business away. 

“When we conducted a similar study two years ago, there was a more even split between card and cash payments when paying in-person at the car park.

“If we look deeper at the survey results, we also see cash is more strongly favoured in rural areas. In remote spots, it could be impossible to use card machines because they couldn’t connect. So this preference could well be a legacy of that problem.

“But, as connectivity continues to improve across the country, providers can offer the option of card or cash.”

Most people need to park at some point, whether they are visiting a hospital, on a shopping trip to town or staying at a hotel for a weekend break. Many car parks are owned by local authorities and run by an external firm, while hospitals, hotels, retailers and more all have a hand in the industry.

Despite the size of the parking-payments sector, it can often be overlooked. But thanks to developments in technology, it continues to get easier to pay, whether through apps, through directing people to a website or telephone service, or using cold, hard cash.

What’s the favourite card payment method?

“The overwhelming preference of people paying by card is to pay at a machine or barrier,” said Patrick.

“But almost half like to use an app when the car is parked, a figure that rises to almost three in five [57%] in London. This suggests a greater adoption of technology or better network availability in urban areas, or both. 

“Having the flexibility to offer drivers the option of paying in-app or in-person with either cash or card means you’re meeting the preference of the vast majority of drivers and ensuring you’re not turning business away.”

The survey also shows a quarter of people like to use a digital wallet, on their smartphone or watch. This appears to be a huge increase from a similar survey we carried out a couple of years ago. We also know from separate research that that digital wallets are on the rise.

Consider alternative payment methods

Other options offered are less popular, with 14% favouring QR codes, and one in ten (10%) choosing to pre-book in advance of parking.

“While these options are used by the minority, they’re more popular with younger users,” said Patrick.

“Providing the option to pre-book for parking through an app is something worth considering if you’re a provider for concert or stadium venues, or other places where younger, more tech-savvy drivers will be visiting for an event.”

To those outside the industry, it might be surprising to learn that parking is ever-changing and requires constant adapting on the part of providers to meet the needs of customers. 

Elavon Europe is a market leader in the sector and can help you meet those changing needs right now and for the future. Talk to us to find out more.

Source: Yonder conducted an online sample of 1,103 UK adults 18+ between 8-14 March 2023. Data is weighted to be representative of the population of the UK. Targets for quotas and weights are taken from the PAMCO survey, a random probability survey conducted annually with 35,000 adults. Yonder is a founding member of the British Polling Council and abides by its rules. 

Question: Which of the following methods, if any, is your preferred method of payment for parking a car? Table rebased to exclude those who don’t know.