How could innovation in mobility support sustainability goals?

Urban mobility is a catch all term that traditionally covers the movement of people and goods within an urban environment. But today it’s so much more than that, given governments and businesses need to find new and innovative ways to empower society to act more sustainably.

Consumers can quickly embrace and adopt new behaviours enabled by innovative technology such as contactless payments at public transport hubs or using apps to order and share taxis directly to where they are waiting. This level of convenience and seamless interoperability didn’t always happen, but it now seems a lifetime ago since before these services were available.

Here we’ll explore three key areas of urban mobility and how the payments industry can supercharge convenient, seamless experiences that drive adoption and growth of more sustainable practices.

1. Urban Mobility and inclusive travel

Today, around 56% of the world’s population live in cities, with the urban population more than doubling its current size by 2050, at which point nearly 7 of 10 people will live in cities¹.

According to 2023 research from Visa², more than four in ten transit passengers worldwide say that tapping their own debit or credit card to make open loop contactless fare payments is their preferred fare payment option (42%), followed by tapping a card stored in their mobile wallet (39%).

A recent study in Italy³ found that contactless payments can simplify access to public transport services and incentivize its use. Visa’s "Digital payments on the move" report revealed that one in three Italians surveyed (28%) already pay digitally for public transport, using a physical or virtualised card (digital wallet). In all the cities analysed, the advantages recognized by those who rely on contactless payment include: the convenience of buying a ticket without cash (46%); followed by ease of use (45%); the speed of payment (41%); and environmental protection (33%).

2. The rise of EVs and seamless payment systems

As more European countries embrace electric vehicles, we are likely to see governments prioritising a continued increase in EV charging points over traditional fuel pumps. The transition to electric vehicles will support the transition towards a more sustainable future and has led to a fast growing industry. Consequently, the industry is rapidly adapting to keep up with the increasing demand. For instance, at Visa, the volume of payments for public charging has grown by 130% in the past year⁴, showing no signs of slowing down.

Payment preferences are evolving towards greater convenience and simplicity. As multiple EV players offer various payment solutions, including proprietary cards, QR codes and dongles, EV drivers often find it difficult to navigate all the available options.

Another issue associated with the proliferation of EVs on our roads is the lack of EV charging infrastructure. To help combat this, Visa has partnered with companies to launch mobile-based solutions for electric vehicle charging and parking, and we continue to develop new solutions for tolls and shared mobility services for example JustPark (below), as well as collaborating with charging networks to ensure they offer EMV contactless payments to deliver a secure and interoperable experience. Another example of how the scale of Visa’s network is providing customers with more choice and greater experiences as they transition to more sustainable behaviours.

3. Fleet and fuel

As travel behaviour changes and technology advances, new mobility solutions are emerging. Commuters are increasingly using Mobility as a Service solutions (digital transport platforms that enable users to access and pay for a range of public and private transport options), where EVs and other sustainable services are often available. With businesses now mandated to report travel-related carbon emissions⁵, more fleet companies are adopting these mobility solutions.

Increasing regulations, including the planned phase-out of internal combustion engines vehicles, make the electrification of fleets in Europe over the next few years inevitable, particularly for light fleet vehicles. Our research shows that 81% of fleet managers have already implemented changes in their fleets. Of these, 45% have at least partially transitioned to electric or hybrid vehicles, and 73% plan to fully transition to sustainable alternatives within the next five years⁶.

And similarly to general EV drivers, fleet managers are craving simplicity and convenience when it comes to payment methods, even for fuel. On average, business and fleet drivers and employees hold 2.3 cards to manage their mobility⁷.

Visa Fleet 2.0, Visa’s advanced mobility card solution, aims to simplify the process, supporting the entire EV ecosystem, including charging point operators, mobility service providers, and fleet companies, by simplifying B2B payments.

The solution aims to reduce confusion for drivers and inefficiencies for businesses trying to track spending. Furthermore, these systems present complexities for drivers when it comes to interoperability, accessing public charging, cross-border travel, and vehicle rentals. Fraud continues to be an issue in these payment systems. Fleet managers have a new set of requirements, and closed-loop magnetic stripe cards are no longer sufficient to keep up with fleet needs.

Companies and government entities with fleets of vehicles, whether they are passenger cars for employees and contractors, light vehicles for last-mile transport, or heavy vehicles for commercial transport have long had, and continue to have, common needs when it comes to purchases. These range from being able to efficiently manage cashflow and liquidity; to having a holistic view and control of driver spending; providing sustainable mobility solutions and protecting against fraud.

Visa projects to support public mobility

Visa has implemented more than 750 contactless public transportation projects around the world. In 2023, Visa processed more than 1.6 billion contactless transactions on global mobility systems, an increase of more than 30% compared to the previous year⁸.