The post-pandemic
Most public-transit riders would rather link payments for bicycle, scooter and ride-share fees along with bus and subway fares within a single app, according to a survey Visa conducted in May among 11,500 consumers in 12 global markets.
Such an app would fix the problem faced by 51% of public-transit riders surveyed, who said they're using four or more payment methods per month to get from point to point as buses, trains and other modes require them to juggle cards, tickets and cash.
Sixty-four percent of consumers who use public transit said they would use such an app if it were available, and 42% said they would use public transit more often if they could plan, pay for and manage various legs of any public-transit journey, the survey found.
The results indicate a ripening climate for
"Contactless has taken hold in many markets, but transit payment apps are still quite fragmented so that many riders are tapping to pay here, using a ticket there and even cash to get from point to point in many cities," Mackie said.
The vision of MaaS is not unlike online shopping, where you plan purchases and pay for them through one app like Amazon, except every city will have its own app with interoperability between transit agencies, so there will be a rich mosaic of connected apps making it easy to pay for all kinds of transport modes wherever you go, Mackie said.
Mastercard also supports MaaS, and previously announced its
If MaaS is developed to its full potential, a consumer in any participating city could use a centralized app to plan their journey across town, with the option to prioritize speed versus low-carbon-impact modes, or methods that incorporate exercise, Mackie said.
"Ideally, MaaS would make it easier to plan a journey based on a rider's specific preferences — with recommendations for the best alternatives in cases of traffic snarls or a train delay — with payments enabling the whole process in the background," Mackie said.
The potential for MaaS and payments technology to drive significant public-sector transit convenience has been discussed for years, said transit industry consultant Peter Quadagno, founder of West Chester, Pennsylvania-based Quadagno & Associates.
"MaaS has been a buzzword in the industry that also stands for 'getting more transaction volume from a sector that's invisible to me,' " Quadagno said. He noted that there would be significant costs and challenges required to get multiple siloed transit agencies and third-party transportation-service operators to collaborate on streamlining payment across cities.
But the growing ubiquity of contactless payments within public transit puts Visa and Mastercard in a better position than before to drive MaaS, Quadagno said.
"If the card brands could make the business case, and get governments to kick in investment, that might get them over the hurdles," he said.
While MaaS is still in its infancy, the concept has advanced furthest in certain Nordic cities like Helsinki, which combines various city transport services in its
The first key step to MaaS adoption was assessing consumers' readiness, according to Mackie.
Visa's next moves in driving MaaS involve encouraging transit agencies around the world to adopt a single payment system, versus supporting existing fragmented systems for buses, trains and light rail that exist in many cities.
"Transit isn't the most avant-garde of industries; it's very local and very brick-and-mortar in its nature, and hasn't kept up with advances in retail, for example," Mackie said.
Visa also is encouraging transit systems to streamline consumer payments by capping the total fare any consumer might pay on a daily, weekly or monthly basis — across multiple transit systems — to increase confidence that they won't be overcharged, he said.
The other element will be encouraging third-party operators of transit methods including bicycle and scooter rental, ride-sharing and even car rental providers to close gaps in payment methods to connect to central cross-transit apps within cities.
Municipalities would also need to ensure inclusive support of multiple transport-mode payments, he noted.
"All the solutions we're developing are inclusive, so if there are riders who can't afford bank-issued payment credentials there would be options for prepaid cards or transit cards loaded with credits issued by government agencies," he said.
MaaS may assume different shapes in various markets, Mackie said.
"There are many definitions of MaaS, but with the incredible progress that's been made in contactless adoption in the last few years, we see a path to playing a bigger role to help drive realization of the concept through our network, capabilities and setting standards that will help it take off," he said.
