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Visa and Stanford University publish one of the largest global
transportation studies, more than 19,000 commuters in 19 countries
participated
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Study assesses trends and challenges in public transportation and
parking, in the face of population growth and urban migration patterns
BARCELONA, Spain--(BUSINESS WIRE)--
Today, Visa (NYSE: V), in collaboration with Stanford University,
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.
According to the UN1, by 2050, 68 percent of the world’s
population will live in urban centres – and the number of “megacities”
with populations greater than 10 million people will rise from 43 today
to 51 within that same period.
Building on Visa’s experience working with transit operators, automotive
companies and technology start-ups, Visa commissioned a global study, “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 experts at Stanford University, to better
understand the technology gaps in addressing their painpoints.
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.
Mike Lemberger, SVP, Product Solutions Europe, Visa explains: “The
future success of our cities is intertwined with – and reliant on – the
future of transportation and mobility. 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.”
Herman Donner, PhD and Postdoctoral Researcher from Stanford
University co-authored the report and summarised: “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. 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 stakeholder
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 centres,
including:
KEY TRENDS (GLOBAL)
Commute times:
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46 percent of consumers globally have seen commuting times increase
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Half (52 percent) are frustrated with the experience of using public
transport
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One third of those surveyed (37 percent) expect that their commuting
time will increase over the next five years.
Car use:
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The personal car remains the top mode of transport for both commuting
(60%) and personal travel (61%)
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Only 42% of Generation Z (aged 18-25) respondents use a car to get
to work, school or university, or for personal travel
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The most disliked aspect of driving is attempting to find a parking
space, cited by 64% of respondents,
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Followed by the risk of getting a fine if you park longer than
anticipated (44%) and
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Paying more for parking time than needed (42%)
Public transport use:
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Less than half of people surveyed use public transport as a way to get
to work, school or university (44 percent),
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That number rises to 54 percent for personal travel such as
entertainment.
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Commuters choose transportation type based on three factors:
convenience, reliability and overcrowding. Importance of each factor
differs depending on age:
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Baby Boomers (age 56+) - Convenience (82 percent), Reliability (84
percent) and Overcrowding (72 percent)
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GenX (46-55) - Convenience (79 percent), Reliability (82 percent)
and Overcrowding (71 percent)
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Millennials (26-45) – Convenience (74 percent), Reliability (76
percent) and Overcrowding (67 percent)
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GenZ (18-25) - Convenience (62 percent), Reliability (67 percent)
and Overcrowding (55 percent)
Payments:
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Complexity in payment is often at the root of many common complaints.
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If it was easier to pay for public transport, average use would
increase by 27 percent.
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47 percent said the need for different tickets for different modes of
travel is an issue,
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44 percent said not knowing how much to pay is a problem, and
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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
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For car users, 47% would like to see innovations that would advise on
the cheapest fuel available
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35% would like an app that recognizes the location where they are
trying to refuel and pays through the app
VISA TOP FIVE RECOMMENDATIONS
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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.
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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.
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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.
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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.
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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 analyse 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 download the full global report here: https://vision.visaeurope.com/blogs/future-of-transportation
# # #
Methodology
Visa commissioned the Future of Transportation consumer research with
Sapio Research. The survey was conducted with 19,384 consumers living in
either of the two biggest cities in 19 countries. All interviews were
conducted online during July 2018.
The cities and countries covered were: Argentina (Buenos Aires,
Cordoba), Australia (Sydney, Melbourne), Brazil (Rio de Janeiro, Sao
Paulo), Canada (Toronto, Montreal), China (Shanghai, Beijing), Egypt
(Cairo, Alexandria), France (Paris, Marseille), Germany (Berlin,
Hamburg), India (Mumbai, Delhi), Japan (Tokyo, Osaka), Mexico (Mexico
City, Guadalajara), Poland (Warsaw, Krakow), Russia (Moscow, Saint
Petersburg), South Africa (Cape Town, Johannesburg), Sweden (Stockholm,
Gothenburg), South Korea (Seoul, Busan), UAE (Dubai, Abu Dhabi), UK
(London, Birmingham), US (New York, Los Angeles).
The respondents consisted of 65 per cent living in the inner city/centre
and 35 per cent in the outer city and suburbs. More than half (55 per
cent) were in full-time employment.
We asked people about the modes of transport they use, their commuting
experience (including their biggest concerns), reasons for not choosing
certain transport methods, and their views on payment for transport and
different innovations that could impact their travelling experience. The
findings on frustrations and pain points were shared with researchers
from Stanford University who then explored technologies and products
currently available that could solve some of these problems.
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our
mission is to connect the world through the most innovative, reliable
and secure payment network - enabling individuals, businesses and
economies to thrive. Our advanced global processing network, VisaNet,
provides secure and reliable payments around the world, and is capable
of handling more than 65,000 transaction messages a second. The
company’s relentless focus on innovation is a catalyst for the rapid
growth of connected commerce on any device. As the world moves from
analog to digital, Visa is applying our brand, products, people, network
and scale to reshape the future of commerce. For more information,
visit: https://vision.visaeurope.com/
and follow us at @VisaNewsEurope.
1 United Nations, 2018 Revision of World Urbanization
Prospects
View source version on businesswire.com:
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Media Contact
Visa
Rica Squires
Tel: +44
(0)7436 281 065
Email: [email protected]
Source: Visa