Follow this blog:
RSS

High-tech mobile payment developments on the Long Island Rail Road

By | March 9, 2012, 12:13 PM PST

The Long Island Rail Road at Penn Station

The Long Island Rail Road at Penn Station

New York’s Metropolitan Transportation Authority (MTA) is testing a system on the Long Island Rail Road to allow riders to pay for their fares using a mobile phone. Railroad employees are experimenting with the “near-field communication” payment system using Nokia smartphones.  Later this spring, nearly 100 riders will be provided with free smartphones to test the system.

“Near-field communication” technology allows customers to tap their smartphones to pay for purchases using a touch point or sensor. The technology is only available on certain phones but can also be used to make purchases in stores which have the corresponding sensors.

The innovative technology could make commuting easier for customers, who would no longer have to remember to reload city-specific fare cards or wait in line to purchase tickets. But it also has perks for transit system owners and operators. Already, providers of fare payment systems are considering switching from existing fare cards to credit-card payments, meaning that the iconic NYC Metrocard is facing extinction. If such further technology is adopted by customers, it can reduce ticketing costs by simplifying transit machines, reducing needed personnel and streamlining the payment process.

The transportation industry around the world has begun to embrace new technologies in taxis, buses and trains. In the same region late last year, New Jersey Transit began testing smartphone sensor payment using Android phones and Google Wallet’s “tap-and-pay.” Similarly, New York City taxi cabs are also testing mobile payment systems in a move toward lowering processing fees.

Should the “near-field communication” test on the Long Island Rail Road go smoothly, it could mean further innovation for all of the 1.6 billion annual subway trips on the MTA.

Via [Newsday]

Start your week smarter with our weekly e-mail newsletter. It's your cheat sheet for good ideas. Get it.

Megan Kenna

About Megan Kenna

Megan Kenna was a contributing editor for SmartPlanet in 2012.

Megan Kenna

Megan Kenna

Contributing Editor

Megan Kenna is a freelance writer based in Brussels, Belgium. She has written for Forbes.com, The Baltic Times and Public Service Europe. Previously, she worked in maritime law, volunteered for the United Nations and taught English in China. She holds degrees from the University of Pittsburgh and Boston University.

Follow her on Twitter.

Megan Kenna

Megan Kenna

Megan does not have financial holdings that would influence how or what she covers.

She writes for SmartPlanet and is not an employee of CBS.

If you liked this, don't miss...
The discussion hasn’t started yet. Why don’t you begin it?
Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]

Join the SmartPlanet community and join the conversation! Signing up is fast and free. Don't wait -- we want to hear your opinion!