August 26, 2010
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News: Chicago First To Offer Riders Credit Card Payment
Chicago will be the first major U.S. city to offer public transportation riders the opportunity to use their mobile phones as a credit card payment option. The Chicago Transit Authority (CTA) which hosts over 1.7 million travelers a day via bus and train will soon be launching the new technology that will allow riders to use its open fare collection system to access debit and credit card payment from mobile phones. In order for riders to use their phones, they will need to either purchase the "smart" phone or get a special computer chip installed in their current phone. The debit and credit card application is easy to install and use as it requires riders to simply tap their phones on a touch pad. Riders who use the new application will receive rides at a discount.
The concept is not new and has been in existence throughout Asia and Europe for some time. The application not only functions as a payment option for the CTA, but users will be able to use their mobile phones as a debit or credit card for other purchases by merchants supporting the program. The CTA has not set a date when the application will be available to riders as they continue to finalize bidding from interest credit card companies. If the CTA is successful at including free installation by lenders, riders should realize the benefits of discounted fares while the CTA rids itself of the expense of replacing its current ancient system.
The CTA sees the new system as a means to increase riders who current avoid the hassles of first visiting an automatic teller machine for cash and then standing in long lines to purchase ride tickets. At this time, riders do not have the convenience of paying for rides via debit or credit card. Additionally, it would reduce the CTA's cost of printing and selling rider cards that would not be needed if riders had an alternate method of paying by credit or debit card.