Phones bringing mobile payments alive

There has been a lot of talk recently about public transit passengers being able to use a special near-field communication (NFC) microchips or radio frequency identification (RFID)-based technologies to pay for entrance to use buses, trains and other public transportation systems.  More organizations and local governments have discussed the possiblities, but very little has been done to actually roll the technology out.

I know using cell phones or some other type of fast pass is popular in Japan, China and across Europe, but I'm disappointed how rarely it is implemented in the United States.  A growing number of larger cities in the U.S. are experimenting with these easier payment systems, but there is still a lot that must be done.

People who travel in Chicago may soon be able to board buses and trains after using their mobile phone to pay for the one-way transit.  The service could be especially useful for younger people, as their parents can credit the accounts without having to give over cash for each trip.

The San Francisco Bay Area Rapid Transit (BART) train system uses a similar technology, with municipal executives around the country discussing the use of similar technology.  Stores also are experimenting with different kinds of e-z pass technology to make paying at the registers easier. 


I'm familiar with the BART pay-by-phone service, and am pleased with its simplicity for travelers.  A rider opens an account that can hold up to $48 at a single time, and each fare is debited out of the rider's account.  If an account reaches $10, the system will automatically charge a rider's credit card and add more money to the account.

There are upsides for both the public transportation agencies and transit riders -- riders have a more convenient travel experience without being forced to search for tickets or money.  The transit agency benefits as they'll save money by not having to print an increased number of paper tickets.

Do you live in an area where you can use pay-by-phone or e-z card technology?  If so, where are you located?  Do you like the ability to not have to rely on cash or credit all the time?

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