Do you have government-issued payment technology? A tracking device that is tied to your bank account or credit card, that allows you to pay for stuff without the hassle of transaction friction? Chances are, if you are a commuter, you do. I’ve got one in my car, an image of it is above.
I love my FasTrak. It lets me whiz through the numerous bridge toll booths dotting the Bay Area. But recently, FasTrak did something very important – it cut a deal with the San Francisco Airport, a deal that allows folks with FasTrak to pay for airport parking using their selfsame FasTrak device.
Pretty obvious, no? Well, no, in fact. I’m sure cuttting this deal was fraught with all the red tape and political hazards typical of local government.
But it got me thinking. I have a FasTrak device in my car. I have connected that device to a trusted payment service (a credit card, in my case). Why shouldn’t the local government leverage that fact, and get into the payment biz? It’s a great business (just ask MasterCard or Amex), it pays well, and it’s a service I’d trust FasTrak to get right, because they’ve built significant brand equity with me over the past few years.
We have a major budget crisis here in California, and everyone is pointing fingers, arguing about which programs should get cut, and hoping that we can gamble our way out of the problem (no, really). What about the government *actually providing a valuable service,* one we’d all be willing to pay a bit for?
I know, I know, it’d cut into the credit card companies’ business, but, jesus, tough shit, guys. California is in the pole position here, and should leverage it. Miniaturize the FasTrak, add a modal button (ie, when I press on it, it activates) and some security software, and then roll it out at grocery stores, gas stations, shit, everywhere you can buy a lottery ticket for that matter. The brilliant angle is this: while tons of retailers have tried this, no one wants a walled garden approach (ie, I can use this key fob for gas, that key fob for Safeway, etc.). The government can set an open standard, create a development platform…you all know the rest.
And take a 1-2.5% cut from retailers. I, for one, would love it.