Tap-and-go transit payments is creating an inflection point for contactless payments in the United States
Mastercard announced its partnership with transportation solutions provider Cubic Transportation Systems, and Miami-Dade County Department of Transportation and Public Works (DTPW) to enable tap-and-go payments at Miami’s Metrorail stations. This service is expected to expand to the Metrobus service later this year, and will benefit millions of travelers who typically use the public transit system in the city.
“My administration has been clearly focused on incorporating innovative technologies to make public transportation both hassle-free and appealing,” said Miami-Dade County Mayor Carlos A. Gimenez. “The launch of contactless payment for our transit riders marks a great step forward for Miami-Dade County.”
In addition to partnering with DTPW to upgrade its ticketing technology, Mastercard is working with the agency to evaluate how transit tap-and-go payments can facilitate seamless integration with ride share services. The goal of this partnership is to optimize connections to and from train stations and bus stops.
“We strive to make it easier to use transit. Now, you can tap your phone or card and go! Tapping to pay with a contactless-enabled bank card or digital wallet meets the high consumer expectations in today’s age of convenience,” said DTPW Director Alice N. Bravo, P.E.
The launch of contactless payments in Miami builds off the work Mastercard is doing to transform transit ticketing in more than 20 U.S. cities.
“Transit is serving as an important catalyst to drive the use of contactless payments in the U.S.,” said Linda Kirkpatrick, executive vice president, U.S. Merchants and Acceptance, Mastercard. “When commuters use contactless payments for transit, there’s a halo effect on nearby contactless-enabled merchants, especially coffee shops, grocery stores and pharmacies. Mastercard’s long-standing support and investment in transit solutions makes it uniquely positioned to drive this transformation.”
According to Mastercard, contactless payments momentum in the U.S. is reaching a tipping point. Sixty percent of US Mastercard volume occurs at contactless-enabled merchants. In New York City, where the MTA enabled contactless payments in the subway, the company has seen contactless volume grow at a record pace. Consumers are now leveraging contactless more for their everyday purchases, completely transforming the speed and efficiency of the payment experience.
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. Our global payments processing network connects consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.