Published 4 years ago.
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Global transportation study assesses trends and challenges in public
transportation and parking, in the face of population growth and urban migration patterns.
Visa, in collaboration with
Stanford University, has launched one of the largest global studies
examining the growing demand for public and private transportation, and the
important role digital commerce plays in driving sustainable growth.
The UN projects that by 2050, 68 percent of the world’s population will live
in urban centers — and the number of “megacities” with populations greater than
10 million people will rise from 43 today to 51 within that same period. While
more and more people are eschewing car ownership and commuting for options such
and light electric
millions of people worldwide still rely on public transit for their daily
Visa commissioned The Future of Transportation: Mobility in the Age of the
Megacity to better understand the challenges commuters face today and in the
future. The key findings were combined with a view of existing and near-horizon
innovations provided by Stanford experts, to better understand the technology
gaps in addressing their pain points.
Payments lie at the heart of every form of travel, and will continue to become
more integral as more cities move to contactless public transportation, digital
payments for parking and rental services such as bikes or scooters.
“The future success of our cities is intertwined with — and reliant on — the
future of transportation and mobility,” said Mike Lemberger, Visa’s SVP of
Product Solutions Europe. “Visa and our partners have an important role to play,
both in streamlining the payment experience for millions of commuters around the
globe, and supporting public transportation authorities in their quest to build
sustainable and convenient transportation solutions that improve the lives of
the people who use it.”
“When looking across the technology landscape, there already exist many products
that could easily address people’s daily frustrations with travel. However, none
of these solutions should be developed in isolation,” Herman Donner, PhD and
Postdoctoral Researcher from Stanford University, and co-author of the report,
pointed out. “A major challenge therefore lies in first identifying relevant
technologies that provide suitable products for the market, then managing
implementation in conjunction with a broad set of stakeholders — including
mobility providers, technology companies, infrastructure owners and public
transport agencies. From our research, we think that many of these small,
incremental changes have the potential to make a significant difference in
people’s daily travel, whether it’s to help find parking, get the best price to
refuel their car or plan their journey on public transportation.”
The study reflects the feedback of 19,000 consumers in 19 countries and
identified significant challenges faced by growing urban centers, including:
46 percent of consumers globally have seen commuting times increase
Half (52 percent) are frustrated with the experience of using public
One-third of those surveyed (37 percent) expect that their commuting time
will increase over the next five years.
The personal car remains the top mode of transport for both commuting (60
percent) and personal travel (61 percent)
The most disliked aspect of driving is attempting to find a parking space
(64 percent of respondents), followed by the risk of getting a fine if you
park longer than anticipated (44 percent) and paying more for parking time
than needed (42 percent)
Less than half of people surveyed use public transport as a way to get to
work, school or university (44 percent),
That number rises to 54 percent for personal travel such as entertainment.
Commuters choose transportation type based on three factors:
convenience, reliability and overcrowding. Importance of each
factor differs depending on age:
Baby Boomers (age 56+) - Convenience (82 percent), Reliability (84
percent) and Overcrowding (72 percent)
Gen X (46-55) - Convenience (79 percent), Reliability (82 percent)
and Overcrowding (71 percent)
Millennials (26-45) – Convenience (74 percent), Reliability (76
percent) and Overcrowding (67 percent)
Gen Z (18-25) - Convenience (62 percent), Reliability (67 percent) and
Overcrowding (55 percent)
Complexity in payment is often at the root of many common complaints.
If it was easier to pay for public transport, average use would increase by
47 percent said the need for different tickets for different modes of travel
is an issue,
44 percent said not knowing how much to pay is a problem, and
41 percent cited services being “cash-only” as an annoyance. According to
those surveyed, these frustrations make them less likely to use public
transport and more likely to drive their own cars
For car users, 47 percent would like to see innovations that would advise on
the cheapest fuel available
35 percent would like an app that recognizes the location where they are
trying to refuel and pays through the app
Invest in connectivity. City governments needs to invest in an
“always-on” data infrastructure, which is fundamental to the technology
solutions that consumers demand. It supports real-time data exchanges that
can inform people about their journey as well as provide insight for cities
to ensure that services meet shifting demand.
Create a seamless payment experience to support commuter journeys with
multiple “legs.” City governments and urban planners need to collaborate
with think tanks, automotive and technology firms, and payments providers
such as Visa. As a single journey will increasingly involve more than one
mode transport (e.g., car + underground + bike), it becomes imperative to
create a simple, streamlined payment experience for the commuter, ranging
from contactless transit to in-app payments or platform-based solutions.
Integrate personal authentication into the payment experience. As
companies and municipalities increasingly incorporate digital payments, they
also need to integrate instant authentication. The role of Digital ID in the
ecosystem is critical to address the changes in the way people use
transportation, ensuring that both payment and personal authentication is
easy and seamless.
Design commerce systems with all members of society in mind. When
designing the commerce ecosystem, all members of the transportation
ecosystem need to challenge their thinking to include seniors and the un- or
underbanked, ensuring no one is left behind.
Develop strategic partnerships to drive insights. Cities should partner
with corporations that can broader insight, aiding in planning. Artificial
Intelligence in combination with Big Data can be used to analyze data about
consumption, movement and changing trends to anticipate needs in real time
as well as provide cities with insight that can help with future planning.
For more information and to download the full report, see Mike Lemberger's blog post.
Published Feb 25, 2019 7pm EST / 4pm PST / 12am GMT / 1am CET