In urban areas, the challenge of finding convenient on-street parking is a common struggle for city dwellers. This research focuses on exploring the impact of different payment methods on drivers’ payment behavior, as well as the implications for street parking occupancy and wait times. The study reveals interesting insights by comparing traditional payment methods, such as cash and credit card payments through on-site meters, with the flexibility offered by mobile payment applications. To investigate this phenomenon, an analytical model is developed to determine the optimal payment amount, and a regression discontinuity design is used to analyze the patterns in payment amounts. Collaborating with a municipal agency in a densely populated city in North America, extensive street parking payment records are analyzed over multiple years. This research not only contributes to the existing literature on payment methods by focusing on the unique context of street parking but also highlights the potential of adjusting parking prices and promoting mobile payment as effective policy instruments for alleviating the challenges associated with curbside parking.

See Full Text