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The Future of Mobility: From Mass to MaaS | City Possible angle-rightlearn more indicatorFill 1link icoFill 1PlayFill 1

The Future of Mobility: From Mass to MaaS

Consider the rise of smartphones as a standard consumer device. The fact that there’s a supercomputer in the pocket of billions of people across the world is nothing short of remarkable. It’s a singular development that has gone a long way in changing our expectations of how we consume information, connect with each other and conduct commerce.

Keeping pace with people on the move

In a world where more of the world’s population are concentrated in mega-cities and traditional automobile ownership is projected to decline, an average commute or traveler journey will likely involve multiple modes of transportation (e.g. bike, shared car, train). Traditionally, this kind of multi-stage journey was complicated to organize and involved the consumer having to navigate a series of steps to plan the trip, book and even pay for some stages in advance, pay for each stage of the trip (or show evidence of pre-purchase) and manage any connection, scheduling or other disruptions along the way.

But what if a single smartphone-enabled app for multiple modes of transportation could get you to your destination through one single payment for that journey? The single payment is routed to all the appropriate parties to cover the fares and fees involved in your trip. And the technology will connect you with vehicles, public transit and infrastructure to offer flexible and safe travel.

This is the promise of MaaS (Mobility as a Service); a model where the digital transformation of transportation results in radically simplified multi-modal travel for people.

The simplicity of orchestrated multi-stage journeys will make it easier to plan and book complex multi-stage journeys, unlocking greater mobility and access to all a city has to offer – opening people up to more fulfilling experiences and lifestyle options made possible by convenient, connected door-to-door mobility.

Transforming the transportation landscape

The implications of MaaS for the transportation sector are likely to be profound. Digital integration between public and private transit services and operators will allow high-capacity public transport to concentrate on urban centers, complemented by a mix of flexible private service providers in the suburban periphery. Commuters would have access to purchase all services as integrated packages – whether journey-by-journey or as a bundle.

Transport authorities will be able to develop a distinct digital relationship with each customer individually, powered by the smart device. Personalized pricing, discounts, Loyalty programs and entitlements can all be managed on a passenger-by-passenger basis (on an opt-in basis). These relationships will have value to retailers and other merchants, which innovative transport operators will be able to capture through collaboration.

Pioneering the future to unlock what’s possible

Mastercard understands that today’s challenges are best solved through collaboration. We’ve been partnering with cities, transit agencies and technology companies to architect flexible transit solutions for almost a decade – and we’re leading the next generation of mobility services.

We’re also partnering with technology startups from around the world that are experimenting with MaaS in every part of the transport industry. Companies like Tranzer, who are pioneering connected in-app solutions enabling consumers to plan and pay for trips across public transport, private taxi services and ride-hail schemes – even bike sharing.

And we are working with our banking partners to offer people the choice of how they want to pay – by card, phone, watch or transfer account-to-account. In the UK we’re pleased to be driving this agenda through the Faster Payments Service: transport providers now have a simple way to include these payments in their apps using Pay by Bank App. Developed by VocaLink, a Mastercard company, this solution built for in-app account-to-account payments, is available to HSBC customers and is compatible with the Barclays PingIt service. We expect to see growing adoption across the industry as 2019 unfolds.

Merchants and consumers will benefit from the new functionality, which allows people to pay quickly and securely for transit on a mobile device, without the need to enter credit or debit card details. Customers can simply select the Pay by Bank app option during the checkout process, at which point they log into their mobile banking app to seamlessly authorize and complete the purchase.

Working together, we’re charting a future where cities can provide more inclusive opportunities for all and smarter solutions for getting from ‘Point A’ to ‘Point B.’

This spirit of partnership is the inspiration behind City Possible, an initiative that brings cities together – and facilitates best practice sharing and co-creation.

This short video, shows how Mastercard is partnering with cities, transport agencies and technology companies to co-create flexible transit solutions to cope with growing urbanization – and is leading the next generation of mobility services.

If you want to find out more about how we keep people and cities moving, please contact us through the form below.


About the Author

Will Judge
Vice President, Urban Mobility, Enterprise Partnerships Mastercard

Will Judge is responsible for driving Mastercard’s Urban Mobility strategy. In his role he is responsible for establishing global partnerships across the urban mobility ecosystem, working with industry partners to co-create cutting-edge mobility solutions that address the challenges cities and transit systems face while delivering convenience for consumers.

Will’s expertise in the urban mobility and smart cities space is founded upon ten years of experience at Transport for London (TfL), the strategic transportation authority for London, both as an external consultant and as a senior manager. He first started working on the challenges facing London’s transport system as a strategy consultant in the London office of McKinsey & Company in 2002, and the following year moved to join Transport for London on a full-time basis. During his tenure at TfL he acquired deep expertise in PPP financing and contracting, outsourced service delivery, city governance & politics, urban transport management, customer experience design, digital enablement of city services and strategic leadership of public authorities.

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