Contactless Smart Cards, RFID, Payment, Transit and Security

MTA launches contactless payment trial on subway, buses

Tuesday, June 1, 2010

New York’s MTA is now piloting a new payment system that will enable passengers to use MasterCard PayPass contactless credit and debit cards to pay on certain bus and subway lines, according to WNYC.

To pay, riders must simply tap their cards against specially designed fare boxes on bus or subway turnstiles.


Riders can either pay for each individual trip, or purchase in advance at lease $10 worth of credit.

This is the second time the MTA has tested smart cards, says WNYC. The first one lasted from 2006 to 2009 and worked only on the Lexington Avenue subway line.

Now, in addition to the subway, passengers riding the M14, M23, M79, M86, M101, M102, M103 and BxM7 bus routes in Manhattan and the Bronx can test the new system, in addition to the PATH and three NJ Transit bus routes.

Initially, only MasterCard’s PayPass cards will be accepted at turnstiles since the company helped design the system, but after two months Visa will be able to take part in the trial.

The MTA expects the new system will reduce time spent at the turnstiles, as well as dramatically improve the efficiency of bus routes.

According to WNYC, the MTA is also looking at replacing the MetroCard with another mag stripe card called EasyPay, which can be reloaded remotely via credit card. The MTA reports that about 125,000 people are now using EasyPay. [end] 

HSBC announced that it will begin the conversion to contactless technology this month, replacing all customer banking debit cards, according to ThinkMoney.com.

The bank will start to roll out the new contactless cards to existing customers whose debit cards are due to expire this month and then continue the process as cards expire. Customers who don’t want a contactless card can opt out by contacting their bank before their current card expires.

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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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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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Vimpelcom, one of Russia’s largest mobile operators, has announced plans to bring NFC-enabled mobile payments to the Moscow subway.

According to East-West Digital News, the contactless payments system will be identical to the one Vimpelcom introduced in the St. Petersburg Metro last year, which enables passengers to purchase and redeem transit tickets with a tap of a mobile phone.

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Chinese handset manufacturer ZTE has partnered with Turkcell, Turkey’s largest mobile operator, to offer a new SIM-based NFC mobile device for the Turkish market.

The Turkcell T11 handset (aka the ZTE Racer II) can be used to pay for both highway toll payments and items at the point of sale with a simple tap against a contactless reader.

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Telecom NZ, Auckland Transport and Thales have announced plans to start trialling a mobile wallet system across Auckland, New Zealand’s public transportation network starting this May.

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