Cashless Public Transport? Mexico City's Digitalization Lessons

In Mexico City, a metropolis where over 14 million individuals rely on public transportation daily, as reported by the National Institute of Statistics and Geography (INEGI) and the Ministry of Mobility, every decision regarding fare payment methods carries profound implications. The ongoing transition to cashless systems in services like the Metrobús, Cablebús, and soon other public transport modalities, signifies more than just an operational adjustment; it represents a fundamental shift that redefines the interplay between citizens, technology, and public services.

Globally, the adoption of digital payments in public transportation has consistently demonstrated numerous advantages. Major urban centers such as London, Singapore, and Stockholm have successfully integrated contactless fare systems over many years. These systems not only enhance efficiency and substantially reduce operational costs but also facilitate more accurate and real-time data-driven planning. For instance, Transport for London (TfL) in London projects annual savings exceeding £100 million (US$135 million) due to the comprehensive implementation of digital and contactless payment options.

Mexico City has embarked on its own journey toward digital payment integration. While the Mexican Association of Payroll Companies (AMDEN) indicates that cash transactions still account for a dominant 86% of all transactions nationwide, the recent pandemic played a crucial role in accelerating the embrace of digital payment methods. Currently, contactless payments, those that integrate technologies such as NFC, QR codes, and biometric validation are growing exponentially. The National Banking and Securities Commission (CNBV) reported a remarkable 204% increase in CoDi payments between 2021 and 2023. Furthermore, projections from the consulting firm NielsenIQ suggest that by 2024, a significant 60% of smartphone users will have utilized a digital wallet or payment application.

This shift presents a compelling opportunity for the transportation sector to become a leading catalyst for financial inclusion. If millions of Mexicans are compelled to interact daily with a public transport network that no longer accepts cash, this may, out of necessity or convenience, incentivize them to enter the digital financial ecosystem. However, this transition also poses a critical challenge: how to ensure that no segment of the population is marginalized or left behind in this digital transformation?

Currently, a substantial portion of the Mexican adult population, specifically 44%, lacks a bank account, according to the latest financial inclusion report from the National Commission for the Promotion of Consumer Rights. A significant proportion of these unbanked individuals are precisely those who are most reliant on public transportation. Therefore, the digitization effort extends beyond mere technological implementation; it necessitates the careful design of comprehensive transition strategies. These strategies should encompass the expansion of non-bank charging points, the development of interoperable payment cards, and the implementation of robust financial literacy programs to equip citizens with the necessary knowledge and tools for digital transactions.

An additional and increasingly relevant consideration for the digitization of public transportation payments is its crucial role in ensuring a positive experience during the upcoming 2026 World Cup. This monumental event is anticipated to attract over 5.5 million tourists to our country, with the majority expected to visit Mexico City. Given the global trend of declining cash usage, it is imperative that the nation’s capital public transportation system is adequately prepared to accommodate visitors who prefer not to use, or are uncomfortable using, cash for their transit needs within the city.

Ultimately, the move toward cashless transportation systems has the potential to be a powerful catalyst for the broader future of urban digitalization. Nevertheless, the ultimate success of this initiative will not merely hinge on the elimination of physical coins and bills. Rather, it will depend on the successful construction of a robust and inclusive payment system that effectively serves the needs of every citizen, every single day.