Ben Madilynn
COMMUTERS can now use their Visa cards for payments on modern jeepneys in Cebu and Mandaue City.
This, after Visa picked Cebu as the pilot area to launch its first transit project in the country in collaboration with Good Transport Solutions Inc. (GTSI), a transit mobility solutions provider, and GHL Systems Philippines Inc., a nationwide payment service provider and payment acquirer.
This initiative kicked off on Wednesday, Aug. 28, 2024, at the Cebu IT Park Transport Terminal. GTSI is working in partnership with local transport operators, Lahug Apas Transport Cooperative and Mandaue Transport Cooperative to initially make the Visa payment service available in 100 modern jeepneys in Cebu City and 20 modern jeepneys in Mandaue City.
Jeff Navarro, country manager for Visa Philippines, said the company’s entry into the transport sector is meant to help the country achieve its digital payments target.
According to the 2023 Report on E-Payments Measurement, digital payments accounted for 52.8 percent of retail payment transactions in 2023, higher than its 50 percent goal under the Digital Payments Transformation Roadmap 2018-2023. In the previous year, it was 42.1 percent.
Navarro said that digital payments should also be made widely available even in the transport sector.
“We are thrilled to unveil Visa’s inaugural transit project in the Philippines. This initiative aims to enhance the travel experience for daily commuters and tourists in Mandaue City by offering a wider array of payment options. As tourism in the Philippines rebounds, we have observed a growth in inbound tourism and this partnership will make the transit experience more seamless for tourists. The future of transit, both globally and within the Philippines, is poised to create inclusivity through open-loop, contactless payment systems in public transit, and will be centered around providing commuters with seamless, convenient and secure payment options,” he said.
This contactless payment scheme is designed not only to provide convenience for local commuters but also to enhance the tourism experience for foreign visitors in the province, offering them a seamless and modern way to navigate their travels.
In February 2024, Cebu experienced a 69 percent year-on-year increase in visitors, welcoming 104,439 tourists, according to the Department of Tourism. Meanwhile, Mandaue City recorded 228,472 tourist arrivals between January and September 2022.
“With such strong tourism growth, the ability to use Visa cards on public transit significantly enhances convenience, as travelers increasingly prefer secure, contactless digital payments,” said Navarro.
Citing Visa’s Global Travel Intentions Study, Navarro said 97 percent of Asia-Pacific travelers plan to use card payments (credit, debit or prepaid) on their trips, while only 17 percent intend to carry foreign currency (cash).
Visa Philippines said it intends to make its services available to 2,000 modern jeepneys in Cebu in the next two to three years. Currently, there are over 200,000 modern jeepneys in the Philippines.
GTSI chief executive officer (CEO) Brezhnev Tero said this innovation not only streamlines fare collection but also enhances the overall commuter experience, setting a new standard for public transport in the country.
“These efficiencies drive social and economic change and we need to start with a focused approach, which I believe will eventually and inevitably be adapted across public transport systems nationwide,” said Jay Tirona, CEO of GHL Systems Philippines Inc.
Moreover, Visa said there is a clamor for simplified public transit payments and increased digital payment options.
Visa’s Global Urban Mobility survey found that 58 percent of commuters favor a unified payment method for all transport modes, as currently half of them use four or more different methods each month.
Meanwhile, another Visa survey showed that implementing open-loop, contactless payment systems in public transit agencies creates a faster, safer and more hygienic payment experience. Such a system promotes inclusivity and accessibility in public transit, even for those without access to traditional banking services, with modern payment systems simplifying fare processes for transit agencies, reducing costs and mitigating financial risks. / KOC
