Mastercard Pushes Cashless Solutions For Transit Payments

Mastercard plans to bring cashless transit solutions to more than 20 U.S. cities in the next few years, the company said on Friday (March 22).

“From mobile ticketing to digitizing commuter cards and enabling contactless payments, Mastercard has already embedded its technology in 16 metro areas including Los Angeles, Boston and Denver to make getting from Point A to Point B as simple as buying a morning cup of coffee,” the company said.

In 2019, Mastercard plans to bring “tap-and-go” payments to New York City buses and subway systems.

“At the core of the contactless transformation of the future will be Mastercard’s global M-Chip technology and tokenization services to support MTA-issued contactless cards and tokens for digital wallets,” Mastercard said. “These capabilities will help store the MTA-issued card on a digital device without exposing important details and enable terminals to accept open loop and MTA-issued contactless cards — making the commuter experience safe, simple and secure.”

Mastercard is also collaborating with Cubic Transportation Systems to help commuters and travelers alike to use Mastercard tap-and-go tech to traverse the city.

“Transit is an important catalyst for quick and broad adoption of contactless, said Linda Kirkpatrick, executive vice president of U.S. merchants and acceptance at Mastercard. “There are technologies that need to be integrated both at the device-level and infrastructure level. Mastercard is deeply engaged with cities, their transit authorities and integrators in bringing new products and solutions to support their payments transformation.”

Mastercard said that cashless and tap-and-go payments are growing in popularity all around the world, and that mass transit adoption has served as a tipping point for adoption. In London, half of all transit commutes are now contactless, and since its introduction in Vancouver, contactless payments took only two months to reach a million trips.

“Globally, the majority of all urban transportation is paid in cash, which can mean long lines at ticket stations and machines, missed trains and delays on buses,” said Matt Cole, president of Cubic Transportation Systems. “For consumers, contactless technology provides a seamless, secure experience that moves people through stations and on to buses seamlessly and without friction. For transit authorities, the increased speed can expand ridership, reduce dwell times and operational costs.”