Taking public transport become more convenient in the cities of Cebu and Mandaue.
Visa has partnered with transit mobility solutions provider Good Transport Solutions Inc. (GTSI) and payment service firm GHL to allow Visa cardholders to use their cards to pay on modern jeepneys in the cities of Cebu and Mandaue.
Jay Tirona, CEO of GHL Systems Philippines Inc., commented, "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. 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."
The initiative kicked off 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 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 transit modes in the coming years.
Jeff Navarro, country manager for Visa Philippines, said, "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."
He added, "The future of transit 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."
According to the Department of Tourism, in February 2024, Cebu experienced a 69% year-on-year increase in visitors, welcoming 104,439 tourists. Meanwhile, Mandaue City, a popular tourist destination in Cebu, recorded 228,472 tourist arrivals between January and September 2022.
With such strong tourism growth, using 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. In comparison, only 17% intend to carry foreign currency (cash).
Brezhnev Tero, CEO of Good Transport Solutions Inc. (GTSI), said, "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). This groundbreaking collaboration revolutionizes fare collection with enhanced efficiency and security and redefines the commuter experience. By leading the way in transport innovation, we make every journey smoother, faster, and more convenient, setting a new standard for public transport in the country."
Faster and seamless travel
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 to mitigate road congestion, focusing 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 half currently use four or more different techniques 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.
"With Visa making access to payments more inclusive, we are glad to be moving the needle and embracing innovative systems such as the open-loop payment system, which significantly enhances the commuting experience for all," Navarro added. "This approach makes urban mobility more efficient and secure and ensures that everyone, especially those underserved by traditional banking services, has access to seamless and reliable public transportation."
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