Mastercard created an alliance to mobilize financing to help upgrade transit systems around the world. As a part of the company’s City Possible initiative, its global program unlocks capital to introduce more efficient ways for residents and visitors to access public transport through technologies such as contactless payments. Launching this initiative first in North America, Mastercard will partner with Meridium, a world-class global investor with deep experience in developing, financing and managing mobility infrastructure projects.

Through City Possible, a partnership and co-creation framework launched last year, city leaders identified access to capital to improve critical infrastructure as one of their biggest concerns. In a survey of around 100 cities worldwide, the London School of Economics found in 2018 that 55 percent of municipalities identified a lack of public funding as a major barrier to sustainable urban growth.

Even with significant savings that can be realized through contactless ticketing – by 30 percent or more from more efficient operations – many agencies find it difficult to fund the initial capital outlay due to budget constraints. Earlier this year, the American Public Transportation Association (APTA) put the need for critical public transportation investments in the United States – at least – US$ 232 billion.

By bringing together Meridiam’s experience in financing and developing public infrastructure projects with Mastercard’s global expertise in digital technology, the alliance will be able to help transit agencies implement smart payment systems and lay the foundation for mobility-as-a-service (MaaS). Over the coming months, Mastercard and Meridiam will identify key cities that are looking to transform their urban mobility systems.