A recent study conducted by Wakefield Research in partnership with Visa has unveiled a significant trend among commuters in the Asia Pacific region, shedding light on the intricate web of payment methods utilised for transportation. The “Visa Global Urban Mobility Survey” highlights that almost half, precisely 49%, of commuters across the region rely on four or more distinct payment methods for their transportation needs each month.
The survey, which encompassed four key markets in the Asia Pacific, namely Australia, Indonesia, Japan, and Singapore, revealed an overwhelming desire among respondents for a singular payment solution that could encompass all modes of transportation. A staggering 58% of the participants expressed their longing for such a consolidated payment option, which, in turn, could potentially act as an incentive to increase the utilisation of public transport systems.
This revelation brings into focus the pressing need to streamline the payment methods available to commuters. With public transportation accounting for nearly 70% of urban passenger trips across the Asia Pacific region[^2^], the transportation sector faces an uphill challenge in catering to the evolving preferences of its users. The rapid expansion of urban populations exacerbates this challenge, necessitating a robust adaptation to the changing needs of commuters.
Notably, the study underscores the predicament faced by unbanked households, for whom public transit is a lifeline for daily commutes. Despite the essential nature of the service, many individuals find themselves grappling with the existing payment methods.
In line with these findings, an overwhelming 96% of the surveyed respondents anticipated the availability of contactless payment methods from public transport providers. Moreover, an impressive 65% expressed their likelihood to adopt such contactless payment options for their commuting needs. These options include the use of contactless debit, credit, or prepaid cards, which offer benefits such as convenience, reduced reliance on cash, and the assurance of optimal fares through fare capping limits.
Commenting on the study’s implications, T.R. Ramachandran, Head of Products and Solutions, Asia Pacific, Visa, emphasised the burgeoning demand for seamless payment solutions in the public transportation sector. He further emphasised Visa’s commitment to collaborating with governments and transportation operators to establish a unified payment experience that caters to various payment methods, ultimately enhancing urban mobility and customer convenience.
The study also illuminated the positive impact of fare capping on commuters’ behaviour. According to the findings, 45% of participants revealed that they would increase their use of public transportation if their journeys were subjected to fare capping. Contactless payment options ensure precise fare calculations, setting them apart from traditional methods like cash. Fare capping not only guarantees accurate fares but also imposes limits on the overall expenditure for daily, weekly, or monthly rides, rendering the need for monthly passes or dedicated transit cards redundant.
Ramachandran highlighted the broader financial inclusion benefits that contactless payment options can bring to the fore. He observed that these digital payment methods play a pivotal role in supporting individuals who are underbanked or unbanked, for whom public transportation remains an indispensable part of their daily routines. Visa’s commitment to fostering inclusivity within the urban mobility ecosystem is firmly grounded in providing accessible financial solutions.
Amidst the evolving landscape of public transportation, the study emphasised the potential of Mobility-as-a-Service (MaaS) solutions to enhance urban mobility. The sector is grappling with challenges concerning data management and interoperability between digital payment systems. Visa’s comprehensive range of solutions aims to bridge these gaps, offering a seamless payment experience tailored to various public transport modes.
In its pursuit of these goals, Visa has collaborated closely with governments, transport authorities, and private entities to deliver MaaS solutions. The company’s endeavours have resulted in the successful launch of more than 650 contactless public transit projects worldwide, processing a staggering one billion tap-to-pay transit transactions in the year 2022.
