“85 per cent of the world’s payments are still in cash" Ajay Banga, MasterCard’s CEO, told the FT. Transit payments make up a large part of that and so could be a transformative opportunity for MasterCard to chase.
Citing the example of Transport for London, which has opened up its ticketing systems from depending on its Oyster Card contactless payment system to accepting ordinary bank cards, Mr Banga said MasterCard could save transit system operators the cost of maintaining their own systems. “It’s actually cheaper for them” than maintaining their own systems and handling cash, he said. “It takes out the friction.”