Open-loop payment of transit fares continued to gain momentum with transit authorities in two large U.S. cities giving the green light to contract awards that will eventually enable riders to pay their fares directly with contactless bank cards and NFC phones.
Transit officials in Chicago and Philadelphia the past week approved contracts that could have passengers tapping credit and debit cards and NFC phones to pay fares on buses and trains as early as 2014 with such contactless applications as Visa payWave, MasterCard PayPass, American Express’ ExpressPay and Zip from Discover Financial Services.
The contracts add to momentum for open-loop payment of transit fares, following the decision earlier this year by Transport for London to accept credit and debit cards on the city’s buses before next year’s Olympics. The London Underground is scheduled to follow later next year.