What If India’s Next Mobility Revolution Was Already in Your Pocket?

Aug 13, 2025

In this article Shaj M. Yesodharan explores India’s fascinating mobility landscape.
https://www.linkedin.com/in/shaj-m-yesodharan-16492118/

India’s urban mobility landscape is on the brink of a transformative shift, driven by the convergence of digital technologies and the widespread use of smartphones. The idea that a mobility revolution is “already in your pocket” speaks to the potential of leveraging smartphone ecosystems to deliver seamless, accessible, and sustainable transportation solutions. With the urban population projected to surpass 600 million by 2025, the demand for efficient public transit will surge. Innovations such as super apps, integrated bank card fare systems, incentivized mobility programs, and smart ticketing offer promising avenues to address challenges like congestion, cost, and carbon emissions.

This article explores how digital solutions can "meet riders where they are" by reducing user friction, enabling financial inclusion, and forging impactful partnerships between banks and transit agencies. Drawing on case studies and policy initiatives such as the National Common Mobility Card (NCMC) we outline a strategic roadmap for ushering in India’s next-generation mobility revolution.

1 Recap: India’s Transit Payment Context

India’s transit payment system presents a unique paradox: despite leading the world in digital transactions through UPI, 76% of public transport fares are still paid in cash. This disconnects stems from a highly fragmented transport network, a lack of interoperable systems, and infrastructure challenges, making global card-based models ineffective in the Indian context. With 8.2 billion annual transit journeys and over 632 million UPI users, India has a distinct opportunity to create a mobile-first, hybrid payment model.

Solutions include offline QR ticketing, soundbox-enabled payments for auto-rickshaws, smart kiosks for cash-to-UPI conversion, and unified monthly passes. Initiatives like Delhi’s Sarai Kale Khan hub and trials in Hyderabad and Mumbai show promising adoption. Rather than removing cash, India can integrate it smartly, reducing handling costs and boosting financial inclusion. A future-ready mix cash (30%), UPI (45%), prepaid cards (15%), and bank cards (10%) can position India as a global leader in inclusive, digitized transit payments.

2 Meet Riders Where They Are

2.1 Develop Super App Integrations

The development of a transit super app is no longer a luxury it is a strategic necessity for shaping the future of mobility in India. Such an initiative directly supports key national agendas including Digital India, Make in India, and the Smart Cities Mission. With a clear vision, enabling policies, and strong public-private partnerships, a transit super app has the potential to transform the way India moves making public transportation more accessible, efficient, and sustainable for all.

While numerous digital platforms currently offer transit booking functionalities ranging from bus and train to metro and flights they often operate in silos, lacking the interoperability and user-centric design needed to serve commuters effectively. A truly integrated solution is required one that combines ride-hailing, public transit ticketing, and micro-mobility services into a seamless and unified user interface.

Applications like Paytm provide multi-modal booking options, yet the experience remains fragmented. Similarly, while Uber is beginning to integrate metro and bus ticketing, these efforts lack consistency and cross-city compatibility. The Open Network for Digital Commerce (ONDC) is taking commendable steps toward building an interoperable network that connects metro, bus, cab, and auto services but substantial progress is still needed.

To realize a fully integrated mobility experience, stakeholders must collaborate on real-time data sharing, seamless payment systems, and unified user interfaces. This will enhance convenience and encourage more commuters to switch to public transit.

2.2 Integrate Discounts with Bank Cards

Integrating fare discounts directly with bank cards transforms the commuter experience by making public transport more affordable and frictionless, incentivizes cashless transactions, and increases ridership. The NCMC, launched in 2019, enables seamless payments across metros, buses, and retail via RuPay cards issued by banks like SBI, PNB, and Orbit Wallet.

For example, the Kochi1 Card a partnership between Kochi Metro and Axis Bank offers users a 20% fare discount alongside full utility for everyday purchases. Orbit Wallets offers a 5-10% fare discount on ride. These solutions tap into existing financial infrastructure, making onboarding simple and recharging effortless.

Moreover, banks can add further incentives like cashback and loyalty points, similar to Singapore’s EZ-Link program, which led to a 20% drop in cash usage within two years.

This approach is especially relevant in cities like Bengaluru, where rising fare caps (e.g., ₹90 for over 30 km) risk pricing out segments of the population.

2.3 Offer Banking Incentives Through Mobility Programs

Banks are increasingly using transit systems as channels to drive digital banking adoption. Rewards such as cashback, loyalty points, and exclusive mobility-linked offers are proving effective in nudging users toward mobile and internet banking.

For example, ICICI Bank has offered e-coupons for mobile banking activation, and other institutions are exploring frequent-flyer-style reward programs for transit-linked transactions. In 2023, NITI Aayog’s e-FAST platform partnered with banks to finance e-rickshaws for women drivers, illustrating how banking and mobility can come together to support financial and gender inclusion.

Such collaborations benefit both sides: transit agencies increase digital adoption and reduce cash handling, while banks expand their customer base and transaction volumes.

2.4 Leverage "Bankable Moments" in Ticketing

"Bankable moments" refer to high-engagement touchpoints such as ticket purchases, top-ups, or ride completions that can be used to offer financial services or educational content.

For instance, the Chalo App integrates NCMC top-ups with bank accounts and BBPS, allowing recharges up to ₹10,000. Cities like Ahmedabad have piloted kiosks in bus rapid transit (BRT) stations to promote insurance and micro-loans. In 2024, RBL Bank’s integration of UPI with NCMC introduced a smoother payment flow, opening up new avenues for user engagement and financial product promotion.

By capitalizing on India’s 1.2 billion smartphone users, transit platforms can seamlessly integrate financial literacy and inclusion into daily life.

3 Why It Matters

3.1 Reduce Friction

India has just 1.2 buses per 1,000 people, far below the global average of 5–8. Minimizing transaction friction through super apps and NCMC can reduce wait times and dependency on multiple apps or cash. For example, Delhi Metro’s plan to adopt the NCMC system-wide by 2025 is expected to cut transaction time by 30%. These changes align with the Smart Cities Mission and help ensure equitable access for economically weaker sections.

3.2 Incentivize Digital Behavior

Digital incentives whether through fare discounts or reward programs are key to shifting commuter behavior. The Shoonya initiative, for example, recorded over 40 million digital rides by 2023, indicating a rising preference for smart, sustainable transit.

With a projected 1 billion internet users by 2030, India's mobility sector can harness this base to foster long-term behavioral change in favor of environmentally and financially sustainable options. This aligns with FAME-II goals and India’s net-zero commitment for 2070.

3.3 Embed Financial Education into Transit

Transit ecosystems offer powerful touchpoints for delivering financial education. Digital prompts, budgeting tips, and micro-courses embedded within apps or kiosks can elevate awareness around financial planning, especially for women and low-income users.

Campaigns like Shoonya have already proven effective for public education around electric vehicles. A similar model can be extended to financial literacy, supporting the goals of Digital India.

3.4 Banks + Transit as Unexpected Partners

The synergy between banks and transit agencies can reshape India’s urban infrastructure. For instance, SBI’s partnership with Himachal Road Transport Corporation (HRTC) for NCMC services is a promising step toward ecosystem convergence.

These collaborations combine banks’ financial networks with the high-frequency engagement of public transit, driving mutual benefits: higher adoption, deeper inclusion, and shared infrastructure that reduces duplication.

By 2030, such partnerships could contribute to a 20% rise in public transport ridership advancing National Urban Transport Policy (NUTP) 2006 goals

Conclusion

India stands at a defining moment in its mobility evolution. The convergence of digital payments, AI-powered super apps, and banking infrastructure creates a rare opportunity to build a truly inclusive, efficient, and sustainable transport ecosystem. The tools for this revolution are already in our pockets we now need the vision and collaboration to unlock their full potential

Thanks

Thanks again to Shaj M. Yesodharan, please reach out to him on LinkedIn.
https://www.linkedin.com/in/shaj-m-yesodharan-16492118/

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