Empowering the Unbanked: How Mobility Wallets are revolutionizing Transit in Los Angeles
Many transit agencies are looking to push for more digitalization of ticketing and introducing digital modes for ticketing and reducing the cash transaction. However, the key challenge is to tap the unbanked population. Around 7.1% of L.A.-area households did not have a bank account in 2019, compared to 5.4% of households in the US (Federal Deposit Insurance Corp). Further, there is a issue of making public transport more affordable or making it free for people who can afford it.
LA Metro (Los Angeles County Metropolitan Transit Authority) is trying to address both these challenge of unbanked population and affordable public transport by launching innovative project “Mobility Wallet”, a pilot program oriented to the community of southern Los Angeles that provides an all-in-one way to pay for multiple modes of transportation.
How it works?
The MW is a prepaid debit card that is loaded with $150 per month for 12 months (May 2023 to April 2024) that allows one person or several members of the same household to pay for public or private transportation. If a participant doesn’t spend the entire $150 balance within a month, the funds roll over to the next month.
How to use it?
MW allows riders to ride all public transportation, including:
Customers can also use the card to pay for trips on the FlyAway, rent scooters and pay for services or products in bicycle shops.
Who will have it?
In May 2023, LA Metro and LADOT (Los Angeles Department of Transportation) launched the first phase of its Mobility Wallet (MW). Since its launch, more than 1,000 debit cards have been distributed to people who make lower incomes, with 900 people selected through the online application process while 100 were signed up during eight in-person bilingual MW workshops. The mobility wallet will serve approximately 2,000 subscribers for one year.
Participants must be at least 18 years old to qualify in addition to meeting eligibility requirements, such as self-certifying their income and living in one of 10 qualifying southern Los Angeles zip codes. The areas chosen for the MW are home to a population of more than 370,000 people, with 29 percent of households below the poverty level.
Funding
The program, which is a collaboration with the city of Los Angeles and the California Department of Transportation’s California Integrated Travel Project, has a $13.8 million grant from the California Air Resources Board and $2 million in funding from LADOT. MW has been identified as a project that could be supported throughout LA County in preparation for the 2028 Olympics
Other Cities
Michigan has also launched Michigan Mobility Wallet Program. The program’s app gives veterans a one-stop shop for transportation services like public transit, Lyft or Uber, and volunteer drivers. The main grant for the program was provided by the Michigan Department of Transportation. Funding from non-profits and outreach organizations will also help veterans load up their virtual wallets and ride for free.