Campus Cards, College and University Identification 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 Chicago Transit Authority is planning to pilot an array of credit card acceptance technologies on city buses, including contactless payment, according to cardratings.com.

The CTA is planning the switch in order to save time and tighten up efficiency. Research shows that a typical cash transaction takes 25 seconds, as opposed to a credit card swipe, which takes only 2. Cash transactions can therefore lead to delayed routes and missed connections.

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New analysis from Frost & Sullivan shows that current smart card-based transit projects in growing European and world cities will lead to an 11% Compound Annual Growth Rate (CAGR) in smart card shipment from 2009 to 2015.

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