14 MONTEREY COUNTY WEEKLY December 19-25, 2024 www.montereycountynow.com Three-and-a-half years ago, Monterey-Salinas Transit made paying for bus fares as easy as the tap of a card, convenient for anyone who has a credit or debit card. Those without cards were left fumbling for change. A new partnership between MST and an initiative that offers a way for people to open low-fee bank accounts and thus gain contactless bank cards is set to eliminate the fumbling, as well as provide MST with some cost savings. Bank On is an initiative of the nonprofit Cities for Financial Empowerment Fund, which seeks to connect people to safe and affordable bank accounts. The accounts cost $5 a month or less and have no overdraft fees or insufficient funds fees. The accounts are available through participating local banks and credit unions— accounts are opened through the Bank On website, joinbankon.org/certifidedaccount. Online bank accounts are available through bankononline.org. According to Bank On, close to 4.5 percent of U.S. households, or approximately 5.9 million adults, are “unbanked” without a checking or savings account. Another 14 percent are “underbanked,” meaning they use fringe financial services such as payday lenders and pawn shops. Nationally, just over 33 percent of Hispanic households are unbanked or underbanked, compared to less than 12 percent of white households. “We have a banking system that is less accessible to those people who are historically underrepresented or are very low-income, who look very much like, and share the same characteristics of, those who use public transit,” says Carl Sedoryk, MST general manager/ CEO. MST leadership saw an opportunity through partnership with CFEF to provide riders with a way to access financial tools they might not otherwise be able to, like debit cards and direct deposit. MST has incorporated a discount program that caps the regular fares of tap-to-pay users at $6 per day, $20 per week and $70 per month. Sedoryk says about 40 percent of riders who use tap-to-pay are achieving discounts. There’s a benefit to MST as well, since the more people use cashless tools, the less expense to the transit system: Sedoryk says it costs 18 cents of every dollar collected to process cash, compared to approximately 5 cents to process tap-to-pay. Collecting cash is expensive for both customers and MST, “so why are we doing that? We need to stop,” Sedoryk says. “Our goal [is] we want to increase the number of bank cards into our passenger base because it’s good for the passenger and it’s good for MST.” Currently about 10 percent of MST riders are using tap-to-pay, but it’s more than doubled since 2022. Sedoryk sees room for more growth. The longer-term vision is to go cashless, as many businesses already have. “It would be in everyone’s interest that we don’t even take cash. But that’s a long way to go,” Sedoryk says. “We have to start somewhere, and we want to get these tools into people’s hands so they don’t have to carry coins and cash wherever they go.” Bank On It A new MST partnership offers contactless bank cards to those without accounts. By Pam Marino MST envisions someday going cashless, which would save the transit agency money. Fare boxes cost about $30,000 apiece, are expensive to maintain and slow down boarding to make change. NEWS “It’s good for the passenger and it’s good for MST.” DANIEL DREIFUSS * Borrowers must be members of Bay Federal Credit Union and your business be eligible for Bay Federal membership. Qualification of membership is defined as the business headquarters is located within Santa Cruz, Monterey, or San Benito Counties. Must meet membership and account criteria, all loans subject to approval. Only commercial properties located within the state of California are eligible for financing. Rates and terms will vary based on collateral and credit. Programs, rates, terms, conditions, and services are subject to change without notice. Other restrictions may apply. 831.479.6000 • www.bayfed.com • 888.4BAYFED Federally Insured by NCUA | Equal Housing Lender 1524 N. Main Street | Salinas Now Offering Commercial Real Estate Loans No pre-payment penalties Purchase or refinance Loan amounts up to $5,000,000 Multi-family units, farm & agriculture, office space, warehouses and other properties Visit a branch today!
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