Cebu modern jeeps go cashless with Visa

CEBU, Philippines — A total of 120 modern jeepneys in the cities of Cebu and Mandaue will now accept digital and card payments, following a partnership between Visa, Good Transport Solutions Inc. (GTSI), and payment acquirer GHL Systems Philippines Inc.

This is a pilot initiative of global digital payments provider Visa, contributing to the goal of the Philippines to improve its digital payment ecosystem across the country.

"We are thrilled to unveil Visa's first transit project in the Philippines. This initiative aims to enhance the travel experience for daily commuters and tourists in Mandaue City and Cebu 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. 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,” said Jeff Navarro, Country Manager for Visa Philippines on the sidelines of the project’s launching in Cebu held at the Cebu IT Park Transport Terminal.

According to Navarro, Visa is planning to partner with big transport groups around the Philippines to offer digital payment options, providing commuters in the Philippines with options for cashless payment.

To date, there are 200 thousand modern jeepney units in the Philippines, Visa aims to provide Visa payment-enabled terminals to at least 2,000 modern jeepneys in the next two to three years.

Navarro added that Visa is also planning to partner with other transport groups within Metro Cebu.

Visa, through GTSI is initially partnering with Lahug-Apas Transport Cooperative (LATRANSCO) and Mandaue Transport Cooperative (MTC) to offer VISA-enabled payment options for commuters.

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 coming years, added Navarro.

In February 2024, Cebu experienced a 69 percent year-on-year increase in visitors, welcoming 104,439 tourists, according to the Department of Tourism (DOT).

Meanwhile, Mandaue City, 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, explained Navarro.

Visa's Global Travel Intentions Study highlights this shift, revealing that 97 percent of Asia Pacific travelers plan to use card payments (credit, debit, or prepaid) on their trips, while only 17 percent 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). 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,” said GTHI chief executive officer (CEO) Brezhnev Tero.

Likewise, GHL Systems Philippines Inc. CEO Jay Tirona expressed anticipation of the public transport transition in Cebu through its partnership with Visa, the global leader in digital payments.

“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,” Tirona said.

Visa’s Global Urban Mobility survey found that 58 percent 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.

“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,” said Navarro adding that this approach not only makes urban mobility more efficient and secure but ensures that everyone, especially those underserved by traditional banking services, to have access to seamless and reliable public transportation.

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.