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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The Peninsula Taxi Association (PTA) in South Africa has launched a electronic fare collection system, granting commuters cashless fare and discounts when using the newly developed contactless-enabled transit card, according to The Cape Times.

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United Arab Emirates (UAE) travelers prefer making payments via mobile rather than using cash or credit card, according to a recent survey commissioned by travel technology and transaction processor Amadeus.

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The European Payments Council (EPC) has published the second edition of its “White Paper on Mobile Payments.”

According to EPC, the white paper focuses on the usage of the mobile payments in the Single Euro Payments Area (SEPA) and explores how m-payment services can be delivered through cooperation between service providers in the payment industry and players within the mobile ecosystem.

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As some may recall back in June 2010, the Metropolitan Transportation Authority (MTA) of New York launched tap-and-go contactless payments for commuters to enter select subway stations and participating bus lines using MasterCard PayPass-enabled terminals. Well, the results are in.

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The Smart Card Alliance Transportation Council has introduced a series of educational resources on open payments solutions in public transit systems, including a white paper, Web resources and LinkedIn group for industry professionals.

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