For hundreds of years, cities have attracted people with the promise of building a better life. The density of urban populations guaranteed access to more economic and social opportunities, which only grew with the development of public transit systems. People could quickly travel from one part of a city to the other in search of better education, employment, health care or entertainment.

While all of this will likely remain true in the cities of the future, public transit can also play a new role in helping to create greater social equity.

According to a report by McKinsey Global Institute, one-third of the global population has no connection with secure banking services. Bringing more people into the financial system is a major goal for global leaders and the development community.

Providing people access to bank accounts and new payment options can open the door to improving their quality of life. "Financial inclusion starts with payments," states the World Bank's Committee on Payments and Market Infrastructures. "They serve as a gateway to other financial services, such as savings, credit and insurance."

In recent years, numerous cities worldwide have introduced unbanked or underbanked residents to financial services through another payment ecosystem they are already familiar with—transit payments.

By design, open-loop, contactless payment systems are simple for riders and provide an opportunity for passengers to use whatever payment method they already prefer in their daily lives.

Anything that acts as a barrier to using public transportation networks, including cost or complexity, can disenfranchise people and hinder the development of thriving cities. That's one of the reasons why hundreds of transit agencies around the globe are implementing open-loop, contactless payments.

Read the full article about accessible and inclusive mobility options at Smart Cities Dive.