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Fintech technology supports sustainable transport

Mobility in cities is one of the great present and future challenges in the world. The large car companies devote a significant part of their resources to finding solutions based on technology: artificial intelligence, machine learning or big data.

They are essential technologies for connectivity and mobility in the near future. Because one of the central axes of the research lies in offering new public and/or shared transport opportunities to alleviate congestion in cities.

In this sense, VISA, together with Stanford University, has presented the results of an investigation in which more than 19,000 urban travelers from 19 countries have participated. “One of the largest global studies dedicated to the analysis of the growing demand for public and private transport, and the important role that digital commerce plays in promoting sustainable growth”, is obtained as a conclusion of the preparation of the report that takes the title of “The future of transport: mobility in the era of megacities”, and in which they have also supported, in its preparation, transport operators, car companies and startups.

Among the conclusions drawn from the report highlights the enormous power of accessible means of payment in the current public transport as a clear deterrent. Thus, the report points out that, if there were more payment facilities, “the use of public transport would increase by 27%”; In fact, 41% of the respondents said that it is a “nuisance” that only cash is accepted.

Likewise, close to half of the interviewees described as “problem” the fact that it is necessary to use different supports for different means of transport. VISA, consequently, launches the following recommendations:

It is essential to create a simpler and more agile payment experience for the urban traveler. For the urban traveler. The integration of authentication in the means of payment (digital identification) must go hand in hand with the creation of new means of payment.

(digital identification) must go hand in hand with the creation of new means of payment. Investment in connectivity.

The fact that the population is concentrating more and more in the big cities, together with pollution levels that increasingly alarm the expert agencies, suggest that cities should take seriously the search for solutions to promote efficient public transport. , efficient and sustainable.

Some countries, such as Sweden, have already implemented (in the face of the disuse of cash) revolutionary payment systems, such as a microchip that is inserted in the palm of the hand and recognizes bank data by biometrics. This may be a giant step in Spain, as the use of bank cards and, increasingly, digital wallets, are systems that are leaving aside the notes and coins.

Cities like Madrid have introduced this year the contactless payment in their EMT (Metropolitan Transport Company) which is now in its second phase of implementation, which will conclude – if the forecasts are met – in the next month of June. By 2020, the system will cover a large part of the municipal public transport network (bus, BiciMAD bicycle rental service, cable car and car parks).

Paloma Real, general director of Mastercard Spain, cited in an opinion article the case of the Transport of London as a success story: “in London there are already more than 12 million weekly contactless journeys, and 40% of transactions in the subway are already without contact. ” On the other hand, he pointed out “the 35% reduction in collection costs, which means more than 100 million pounds of annual savings”.

All the data looks to the fintech as a true ally in the great battle for the preservation of the environment, for the sustainability of cities and the future of mobility and urban transport. Exploring its benefits is not an exercise that should be foreign to local, regional and national governments, highlights VISA. Increase the use of public transport by 27%, only implementing digital means of payment would be a revulsive for the fight against air pollution, since it would mean that 27% less private vehicles would circulate in large urban centers. As an example, only in Barcelona, it would mean that 1.2 million fewer trips would be recorded daily.


Also published on Medium.

Published inFintech
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