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Visa offers payWave contactless payment to transit operators
November 3, 2008
SAN FRANCISCO — Visa Inc. is working with the Los Angeles transit authority to allow train, subway and bus riders to pay fares with Visa's payWave-enabled contactless cards. And Visa Europe also has announced a collaboration with the Régie Autonome des Transports Parisiens— the major transit operator for public transportation in Paris and its surroundings — to demonstrate how payWave acceptance at a Paris-metro gate is technically feasible.
According to a news release, both initiatives are using technology that is based on a chip embedded in a payment card that communicates with contactles-card readers. The purchase of a ticket is processed over Visa's global processing network, VisaNet.
Visa says payWave technology adds security by attaching a unique code to each transaction.
"Extending secure, convenient and reliable Visa payments to subways, trains and buses is a great example of how Visa innovations like Visa payWave can dramatically improve the experience for millions of commuters," said Tim Attinger, head of product innovation and development at Visa Inc. "By working with our transit partners in Los Angeles we hope to free busy transit riders from the burden of fumbling for change or searching for paper tickets."
In Los Angeles, Visa is working with the LA Metro system to offer special Visa payWave cards that also incorporate the transit system's "TAP" fare application. The dual-use, prepaid Visa cards allow riders to pay their fares and purchase fare products using their Visa accounts, while also allowing cardholders to make purchases anywhere Visa debit is accepted.
Sold through automated ReadySTATION kiosks within the LA Metro system, the cards will be active and ready to use immediately for both transit fares and Visa purchases. Riders can add up to $500 in value at the kiosks.
Ride, pay, reload and ATM cash-access cards
These are personalized cards with a maximum value limit of $10,000 that are ordered online or over the phone. Beyond a larger value limit, the personalized cards have the added feature of a PIN that can be used for withdrawing cash from ATMs. It will also function as a standard Visa prepaid card for purchases outside the transit system. And cardholders will be eligible for free direct deposit of their paychecks directly to the Visa prepaid card account, an added convenience for those riders without traditional banking relationships.
"Combining TAP and Visa payWave on a single contactless card is a great idea and delivers convenience and speed at bus-fare boxes and rail-station validators for LA transit riders," said Roger Snoble, chief executive of the Los Angeles County Metropolitan Transportation Authority. "It also provides commuters with an easy way to reload and manage their LA transit accounts, while providing them with a Visa prepaid card that is accepted at any Visa debit acceptance location or ATM."
Paris pilot
In Europe, the Visa exhibit at the annual CARTES conference, taking place in Paris this week, will feature an RATP gate that is set up to accept Visa payWave cards. The gate demonstrates that it is technically feasible for the existing Paris Metro gates to accept Visa payWave cards, while continuing to accept Navigo, the local closed-loop card in use today.
Visa transit around the world
In addition to the U.S. and French pilots, Visa's transit strategy supports commercial and pilot programs in Asia and other parts of Europe. Almost a quarter of all Visa cards in Korea, from 18 issuers, now support various domestic-transit applications. Visa cardholders can use the same card to ride transit and pay for goods in the shops. In a partnership with T-Money provider Korea Smart Card Company, card issuer Shinhan Bank and Korea Telecom Freetel, Visa allows commuters to use their Visa accounts to top up their T-Money balances automatically on their phones' SIM cards. In Hong Kong and India, Visa is working with Citibank to support transit applications on local cards for key programs in Hong Kong and Delhi.
In Turkey, Visa Europe and DenizBank have introduced Visa payWave acceptance at Istanbul ferry gates. DenizBank also launched a special co-branded IDO Sea Miles card that rewards ferry travelers with miles for their journeys that can be redeemed for free ferry travel.
And in the United Kingdom, a multifunction Barclaycard Visa credit card features Visa payWave for payment and a contactless Oyster-smartcard application that allows cardholders to use the same card to make low-value purchases and travel throughout London on the public transport network. Visa Europe is collaborating with Transport for London to define how Visa payWave cards might be accepted directly at the fare gate in the London transport network.
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