Modeling Barriers to Cashless Fare Adoption in U.S. Public Transit Systems

Public transportation agencies worldwide are increasingly adopting cashless fare payment systems to improve efficiency and passenger experience. However, full implementation of cashless systems while omitting the cash option would potentially cut riders without access to requirements, such as smartphones and financial tools, or those uncomfortable with electronic transactions, out of accessible transit mobility. This study investigates transit riders’ acceptance of non-cash payment methods under hypothetical scenarios where onboard cash payments are no longer available. Using a comprehensive structural equation modeling approach, the research integrates several latent behavioral constructs, such as digital access and technological comfort, and incorporates overall transit usage frequency as an observed predictor alongside a latent sociodemographic profile. The analysis is based on a survey of over 2,300 transit riders in three U.S. metropolitan areas. The results highlight technological comfort and habitual payment behavior as the most robust predictors of intention to adopt non-cash fare systems. Digital access and financial tool availability are positively associated with technological comfort, but their direct structural effects are weaker once other behavioral factors are controlled for. Moreover, habitual reliance on cashless payment methods positively influences adoption, whereas habitual cash reliance negatively affects intention to adopt. Findings also indicate that sociodemographic factors, such as income, disability, and gender identity, captured as a latent sociodemographic profile, have strong and systematic associations with riders’ intention to adopt non-cash systems, highlighting critical equity concerns. These results indicate the necessity of equitable transit policies and we suggest practical steps in the form of digital inclusion, such as diversified fare offers and targeted incentivizing programs to bring about inclusive developments toward non-cash fare adoption.