Visa brings cashless payments to Cebu modern jeepney rides
Visa, a world leader in digital payments, is collaborating with Good Transport Solutions Inc. (GTSI), a transit mobility solutions provider, and GHL, a leading nationwide payment service provider and payment acquirer. This collaboration has enabled the …
Visa, a world leader in digital payments, is collaborating with Good Transport Solutions Inc. (GTSI), a transit mobility solutions provider, and GHL, a leading nationwide payment service provider and payment acquirer. This collaboration has enabled the use of Visa cards for payments on modern jeepneys in the cities of Cebu and Mandaue.
Visa activates cashless rides initiatives to Cebu commuters
The initiative kicked off last Wednesday, August 28, with an official launch ceremony at the Cebu IT Park Transport Terminal, with Good Transport Solutions Inc. (GTSI) working in partnership with local transport operators, Lahug Apas Transport Cooperative (LATRANSCO) and Mandaue Transport Cooperative (MTC), to launch 120 modern jeepneys in Cebu City and 20 modern jeepneys in Mandaue City.
The onboard terminals in these vehicles now accept Visa payments. This initiative, part of a pilot project, signifies Visa's commitment to promoting transit acceptance in the Philippines with plans to expand to more modes of transit in the coming years.
"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," said Jeff Navarro, Country Manager for Visa Philippines. "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."
In February 2024, Cebu experienced a 69% year-on-year increase in visitors, welcoming 104,439 tourists, according to the Department of Tourism. Meanwhile, Mandaue City, a popular tourist destination in Cebu, 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.
Visa's Global Travel Intentions Study highlights this shift, revealing that 97% of Asia Pacific travelers plan to use card payments (credit, debit, or prepaid) on their trips, while only 17% intend to carry foreign currency (cash).
"We are proud to partner with Visa and GHL to bring the first-of-its-kind contactless payment solution to the Philippines' transport sector through our Transport Mobility Solution, the Bus Revenue Tracker System (BRTS)," said Brezhnev Tero, CEO, Good Transport Solutions Inc. (GTSI). "This groundbreaking collaboration not only revolutionizes fare collection with enhanced efficiency and security but also redefines the commuter experience. By leading the way in transport innovation, we are making every journey smoother, faster, and more convenient, setting a new standard for public transport in the country."
"This partnership is an exciting example of how technology and digital innovation in payments can come together positively for the private and public sectors, and ultimately, for the benefit of Filipinos who ride these jeepneys every day," said Jay Tirona, CEO, GHL Systems Philippines Inc. "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."
Faster and more seamless travel through a cashless, open-loop system
The rapid urbanization across the Asia Pacific, with 120,000 people moving to cities daily, has underscored the need for efficient public transit systems. Governments, including the Philippines, are investing in these systems as part of their strategies to mitigate road congestion, with a focus on simplifying public transit payments and increasing digital payment options.
Visa's Global Urban Mobility survey found that 58% 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.
Visa Philippines' Jeff Navarro (third from right), together with the management of Good Transport Solutions Inc., and GHL during the inauguration of Visa's transit project in Cebu.
"With Visa making access to payments more inclusive, we are glad to be moving the needle in embracing innovative systems such as the open-loop payment system which significantly enhances the commuting experience for all," Navarro added. "This approach not only makes urban mobility more efficient and secure but ensures that everyone, especially those underserved by traditional banking services, has access to seamless and reliable public transportation."
For more details, visit the Visa Philippines website to learn more.
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