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bus routes will be able to accommodate tap-and-go pay- Mastercard stated it is working with transit agencies in
ments, Chase and Visa said in a press release. about two dozen cities to implement solutions that sup-
port payment with open-loop contactless cards as well
Chase Merchant Services is also working with the New as closed-loop cards issued by local transit agencies. The
York Metropolitan Transit Authority to upgrade the fare company said its contactless technology is already being
machine system to accept contactless cards for fare card used in about 16 cities, including Los Angeles, Boston and
purchases. Visa offered telling statistics to support con- Denver. Mastercard also is involved in the technology
sumers foregoing fare cards for tap-and-go turnstile pay- buildout needed to support contactless card acceptance at
ments: 67 percent of mass transit riders have missed a train New York MTA fare card machines.
while waiting in line to reload a transit card; 83 percent
reported having trouble getting their transit cards to work The big question remains: will success for contactless
at turnstiles, and 66 percent have left or forgotten funds on cards translate to greater adoption of mobile tap-and-go
a transit card, at an average loss of $35.10. payments, or will the convenience of tap-and-go cards
further endear consumers like me to plastic cards? A new
Mass transit should be an ideal proving ground for con- report from the Federal Reserve Bank of Boston suggests
tactless payments, as people who use mass transit tend to it will be the former.
use it a lot – 10 times, or more, a week – and they frequent-
ly use cash to purchase fare cards, experts have noted. "It is clear that the U.S. is on the way to supporting both
card and mobile contactless payments, motivated by the
"Transit is an important catalyst for quick and broad adop- completion of EMV migration to chip cards and a solid
tion of contactless," said Linda Kirkpatrick, executive vice NFC mobile payment foundation, which should acceler-
president, U.S. merchants and acceptance, at Mastercard. ate the path to mass adoption in the U.S.," the report con-
"There are technologies that need to be integrated both cluded.
at the device level and infrastructure level. Mastercard is
deeply engaged with cities, their transit authorities and in- Patti Murphy is senior editor at The Green Sheet and president of
tegrators in bringing new products and solutions to sup-
port their payments transformation." ProScribes Inc. Follow her on Twitter @GS_PayMaven.

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