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Mastercard Incorporated MA recently announced that it has partnered with Department of Transport and Main Road (TMR) Queensland to conduct a trial of the new smart ticketing solution. Notably, the solution has been devised by Cubic Corporation’s CUB business unit Cubic Transportation Systems (CTS).
It is worth mentioning that the abovementioned trial can be referred to as phase one of a staged upgrade, which forms part of the Queensland government’s $371-million statewide smart ticketing project. The upgrade aims to accelerate the launch of Smart Ticketing across South East Queensland and 18 regional urban centres by 2022-end.
The newly formed alliance has paved the way for commuters to make contactless payments as they travel across the Gold Coast Light Rail network. Mastercard’s leading payment network will facilitate the trial by aiding local commuters and visitors to Queensland make contactless payments by using a single tap utilizing Mastercard’s payment technology methods.
With Mastercard, the implementation of the transit solution will be hassle-free and the process of purchasing a ticket will be easy. This, in turn, is likely to result in an improved transit experience for travelers across the Gold Coast and Queensland.
Moreover, the abovementioned move facilitates a contactless commuting experience, which is of utmost importance amid the COVID-19 crisis. The prevailing scenario has compelled people to make minimal physical contact, which positions the new smart ticketing solution well for long-term growth. Also, the latest move bodes well considering the ongoing shift to digital from its physical mode in the payments industry. The increasing popularity of contactless payments, which has been accelerated by the pandemic, is here to stay.
The trial seems to be time opportune considering the fact that the new transit solution is likely to offer a host of additional payment options not only to residents of Queensland but also to visitors, whose numbers are likely to shoot up amid the upcoming holiday season.
Shares of Mastercard have gained 12.2% in a year compared with the industry’s growth of 7.1%.
The company’s peers, namely, Visa Inc. V has rallied 12.3% in a year’s time, while American Express Company AXP has lost 4.8% in the same time frame.
Furthermore, Mastercard has been making every possible effort to launch innovative and urban transit solutions worldwide by working closely with transit operators, service providers and technology partners via its Mastercard Transit Partner Program. Case in point, the company collaborated with Transport for New South Wales (NSW) in this month itself to conduct a trial of the Opal digital card, which has been devised by Mastercard in alliance with Commonwealth Bank of Australia and EML Payments Limited. The card is meant for providing customers with a simple and secure tap-and-go payment experience while availing public transport across the state of New South Wales. These initiatives are aimed at enriching experiences of transport users across the transit ecosystem.
It’s worthy of mentioning that Mastercard has constantly undertaken efforts to promote sustainable urban development through the City Possible network, which primarily intends to promote collaboration through which members have been working closely with each other for promoting sustainable urban development. The company has been striving to add members to this network considering the rapid pace of urbanization, which is further triggering demand for innovative urban solutions.
Notably, Mastercard carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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