Mastercard and Meridiam are collaborating to mobilise financing to help upgrade transit systems. As a part of Mastercard’s City Possible initiative, this global programme 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 Meridiam, a French investor with 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 per cent of municipalities identified lack of public funding as a major barrier to sustainable urban growth.
 
“Collaboration is the lifeblood of City Possible,” said Miguel Gamiño, executive vice president at Mastercard. “Today’s announcement represents such a collaborative approach that matches cities’ needs with financing resources, our technology and expertise. This programme highlights how even resource-constrained municipalities can benefit from working with the private sector to make the digital economy work for everyone, everywhere.”
 
Even with significant savings that can be realised through contactless ticketing – by 30 per cent 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 USA at at least $232bn.
 
“We are thrilled to work with Mastercard in bringing modern transport infrastructure to more cities to accelerate the deployment of cutting-edge, technology-enabled infrastructure that is more environmentally friendly and resilient,” said Thierry Déau, chief executive officer at Meridiam. “With this initiative, Meridiam will contribute to the development, financing and management of sustainable urban transport infrastructure, improving mobility experiences and unlocking significant savings for cities. This is another example of our profound commitment towards improving quality of life for more people.”
 
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.
 
“Modern, resilient infrastructure is critical for anticipated urban growth,” said Sameh Naguib Wahba, a director of the World Bank. “The global investment needed for urban infrastructure is $4.1 to $4.7 trillion per year, and even higher if made resilient. This figure dwarfs official development assistance and as such calls for the importance of private investment in building and modernising infrastructure and transit systems.”
 
The announcement builds on the work Mastercard has done in assisting hundreds of cities including Bogota, Dubai, London, New York, Singapore and Sydney. By enabling the cards and digital devices people already carry to access trains, buses and any other mode of transport, cities can provide better experiences to riders.
 
Meridiam was founded in 2005 by Thierry Déau, with the belief that the alignment of interests between the public and private sector can provide critical solutions to the collective problems of communities. It specialises in the development, financing and management of long-term and sustainable public infrastructure projects and assets in the three core sectors of mobility, energy transition and social infrastructure. With offices in Addis Ababa, Amman, Dakar, Istanbul, New York, Luxembourg, Paris, Toronto and Vienna, Meridiam manages €7bn of assets, and more than 75 projects and assets to date.