Contactless Smart Cards, RFID, Payment, Transit and Security

Industry group explores branded contactless payment acceptance for transit industry

Thursday, August 16, 2007

With the emergence of contactless cards and a couple of transit trials testing the use of this new payment medium in lieu of transit passes, the Smart Card Alliance’s Transportation Council released a white paper in October, 2006, exploring this new payment method.

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The Smart Card Alliance Transportation Council has published a white paper examining how the transit industry can best make use of NFC technology.

“One of the major challenges facing transit agencies today is how to capitalize on the ever-growing popularity of mobile phones with a solid mobile strategy,” said Transportation Council Chairman Craig Roberts. “This white paper builds on the knowledge base developed in earlier white papers to foster a greater understanding of NFC technology, explain its role in the transit industry, and shed light on key issues facing the transit industry in developing a mobile strategy.”

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Cubic Transportation Systems has introduced Nextaccount, an account-based open payment platform that offers travelers the convenience to use contactless bank cards, student IDs and mobile phones as their smart ticket, in addition to transit issued smart cards.

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PATCO, the high speed rail line that runs between Philadelphia and Camden County, N.J., is preparing to shift into Phase Two of its open payment trial.

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New Jersey Transit’s use of NFC payments with Google Wallet has been an “overwhelming and resounding success,” according to NJ Transit spokesman John Durson.

Introduced on the NJ Transit network in October 2011, Google Wallet enables riders to purchase tickets with the tap of an NFC-enabled phone at New York Penn Station, Newark Liberty Airport’s rail station and on 7 city bus lines.

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survey conducted on behalf of MasterCard Worldwide by Harris Interactive reveals that U.S. transit riders are ready to kick cash to the curb in favor of contactless payments. Commuters also want to consolidate their mass transit tickets into one card that can be use across multiple transit systems.

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Calgary, Alberta is pushing forward with the anticipated summer launch of a new smart card payment system for public transit, according to the Calgary Herald.

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