LakeTran proposes cashless buses, citing $2 million farebox replacement cost

By Molly Walsh | cleveland.com (TNS)

PAINESVILLE, OHIO — LakeTran staff are recommending the transit agency phase out onboard cash fare collection over the next two years, arguing it makes little financial sense to spend up to $2 million replacing aging fareboxes that collect about $200,000 in cash each year.

LakeTran CEO Ben Capelle presented the recommendation to the Lake County Board of Commissioners on Thursday, emphasizing that no final decision has been made. Any change would require approval from the LakeTran Board of Trustees.

The proposal comes as the agency considers replacing fareboxes installed in 2009 that have exceeded their expected service life. Capelle said new fareboxes would cost between $25,000 and $28,000 per bus, for a total replacement cost of $1.7 million to $2 million, not including installation.

“We’re going to move forward with open payments, which allows you to tap a credit card on the bus,” Capelle said. “Our general recommendation is to transition and sunset our fareboxes on the bus and move to a cashless onboard environment.”

Capelle said the recommendation is based on rider surveys and financial analysis.

According to the agency, about 70% of surveyed riders said they could use a digital payment option, while about 20% said they could not or did not want to. Although 47% of respondents said they preferred paying with cash, many indicated that preference was driven by not wanting to download a mobile app rather than lacking access to a debit or credit card.

LakeTran also found that riders ranked reliable, on-time service as a higher priority than the ability to pay cash onboard.

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If approved, Capelle said the agency would spend 18 to 24 months preparing riders before eliminating onboard cash payments. During that time, LakeTran would introduce additional payment options, including contactless credit and debit card payments on buses, while maintaining discounted fares and transfer privileges.

Commissioner John Plecnik questioned whether eliminating onboard cash payments could drive away riders who rely on cash.

“Your data shows that over 17% of your riders are using cash,” Plecnik said. “And my fundamental question is, how many of those riders do you lose? How many people simply can’t or won’t transition from cash to using a credit card or their LakeTran account? Because if you lost one fifth of your ridership, this would be a bad decision.”

Capelle said LakeTran’s research suggests most cash-paying riders have access to electronic payment methods but prefer not to use a mobile app. He said the planned system would allow riders to simply tap a credit or debit card when boarding, eliminating the need to download an app.

Commissioner Morris Beverage said he supports the financial reasoning behind the recommendation but stressed that riders who prefer cash should continue to have ways to pay.

“I think you have the opportunity for those who are dead set on using cash to be able to use cash,” Beverage said, noting riders could continue purchasing fares with cash at ticket vending machines and other locations before boarding.

Capelle said the agency is evaluating additional options to make the transition as seamless as possible while minimizing impacts on riders.

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