Study: In Lieu of Free Fares, Transit Needs a Cash Option

A study from the University of Oregon reveals that eliminating cash payments on public transit systems can harm low-income users, who are often most dependent on transit for daily needs. 

“They’re also less likely to have a credit card, smartphone, or even the cash reserves to pay for a monthly transit pass upfront,” and have a harder time reloading fare cards without cash options, the study showed. “If people have to visit a gas station or convenience store to reload their bus card with cash, how will they get there?”

“Maintaining cash fare boxes is very expensive; each one can cost thousands of dollars. But accepting cash also increases ridership, giving people more flexibility to hop on a bus without having to jump through hoops to set up an account or link a credit card.” In other words, transit agencies could still lose revenue from lost ridership despite the savings of eliminating cash fareboxes.

The report’s author, Professor Anne Brown, points out the simplest solution: no fares for anyone. “Fares make up only a part of the budget for most transit agencies, and that financial gap could be closed in other ways.” Proponents of fare-free transit argue that—when paired with effective service—it eliminates a major expense for low-income commuters and encourages more ridership.