Challenge

In 2015, Passenger was gearing up to launch its comprehensive digital platform aimed at enhancing public transport services. To enter the market swiftly with its innovative software, Passenger needed a payment provider that could handle operator transactions with minimal fuss.

“Our main requirement was accepting payments on behalf of operators, but without really touching that money,” said Andy Leon, principal engineer at Passenger.

The Passenger platform – designed to enhance customer experience – needed to offload the complexities of transaction management, payout schedules, refunds, and liability concerns. Passenger also wanted a payment solution capable of delivering a smooth, frictionless user experience to maximise conversions. The company turned to Stripe and used Stripe Connect to quickly launch its mobile ticketing platform with integrated payments.

Passenger later realised it needed a way to offer subscriptions and handle recurring payments. The company needed a solution that was easy to implement and helped it handle compliance issues such as the revised Payment Services Directive (PSD2) and Strong Customer Authentication (SCA).

Passenger wanted to provide a smooth user experience across payment methods, adding more user-friendly options such as Google Pay and Apple Pay, especially as Passenger set its sights on European expansion. It needed a payment system versatile enough to integrate new methods easily, catering to the diverse preferences of its expanding market.

Solution

Using Stripe Connect and its simplified, prebuilt onboarding flow, Passenger was able to process payments for several operators using a single integration – with Stripe apportioning the right share of each payment to Passenger and its customers. With Stripe handling everything, Passenger now has less work, while overseeing everything in one place. Connect also offers customers simple onboarding to let them start making revenue on the platform quickly.

Passenger implemented Stripe Billing to help operators manage recurring payments, making it easy for riders to set up monthly payments for their travel tickets. Billing also simplifies compliance with regulations by identifying which charges require SCA and by triggering 3D Secure – an extra layer of authentication – when required.

“We provide a real-time ticketing app, so we needed to ensure that our customers get their tickets instantly for immediate travel,” said Leon. “Billing enabled us to handle transactions asynchronously, providing instant payment confirmations. This is essential since our service offers immediate travel solutions.”

The platform initially launched via Connect to give end customers simpler ways to pay. Passenger is now planning to implement Stripe’s Optimised Checkout Suite, including the Payment Element, which displays the most relevant payment methods from around the globe through a secure, embeddable UI component. The Payment Element allows Passenger to add new payment methods at the click of a button.

Results

Passenger grows revenue by 170%

With Connect, Passenger streamlined its payment process, leading to a smoother user experience and higher conversion. This efficiency contributed a significant uplift in revenue and also allowed Passenger to focus on its business. With Stripe taking care of payments, refunds, handling of the funds, onboarding, and Know Your Customer (KYC), Passenger could launch its platform and go to market more quickly.

“I think that if we’d gone with another payment provider, it would have significantly slowed our time to market,” said Greg Hepworth, director of product and design at Passenger. “With Stripe, it was as simple as saying ‘We need to take payments,’ and then quickly getting it done with just one developer. That level of efficiency in setting up a full platform is quite rare and has been a major plus for us.”

Customers start earning money quickly with Connect

Connect gave Passenger’s users a way to onboard quickly and start earning money without needing their own custom solution. Automatically apportioned transactions give full visibility with less work for Passenger – while being free to focus on other parts of the business.

“Thanks to Stripe, we’ve really been able to zero in on what we’re best at,” said Hepworth. “With Connect handling the payments, we can focus on growing our business in the ways that matter most to us.”

Flexible subscription options drive revenue

With Billing, Passenger users can easily collect and retain more revenue from riders, with no extra effort from Passenger’s engineering teams. Passenger used Connect and Billing to offer a simple checkout experience with automated subscriptions, and options such as tiered pricing and discounts. Together, these solutions have helped Passenger users capture more revenue and instil customer loyalty.

“Using Stripe, we have made it easier for customers to check out. Allowing operators to offer subscription discounts has also helped us boost recurring revenue,” said Hepworth.

Cross-border expansion becomes more accessible

Being able to add new local payment methods at the click of a button with the Optimised Checkout Suite Dashboard will allow Passenger to expand to new European countries more easily.

“As we grow into Europe, we see how important it is to offer different ways to pay, like bank payments,” said Hepworth. “Each country has its own system, and we want to make it easy without adding too much work or cost on our end.”