NFC TIMES Exclusive Insight – While open-loop transit payments services, such as one being launched this week by New York’s Metropolitan Transportation Authority, get most of the attention, most public transit agencies and operators do not plan to accept credit and debit cards directly for payment of fares anytime soon.
Most transit authorities and operators that are moving to digital payments are doing so mainly from paper tickets or low-tech tokens, even cash–at least those transit agencies in North America. Two recent examples are Calgary Transit in Canada and Metro Transit of St. Louis in the U.S.
Both agencies are planning to pilot mobile ticketing, enabling customers to buy digital tickets on their smartphones with credit and debit cards and, in the case of Metro Transit in St. Louis, also with PayPal. The customers would then ride by presenting QR codes on their smartphone screens to scanners on board buses or trains or by showing the ticket manually to train conductors or bus drivers.