Policy Issues in Implementing Smart Cards in Urban Public Transit Systems

Many public transportation institutions have been discarding their magnetic strip payment cards or traditional cash-based fee collection systems in favor of automated fare collection systems with smart card technology. Smart cards look like traditional credit cards or ID cards; however, using RFID technology, they allow for contactless payment and identification. Smart cards are becoming increasingly popular among transit agencies primarily because they are convenient for customers, reduce administrative costs for transit agencies, and have the potential of improving the performance of complex transit systems overall. The increased availability and affordability of contactless cards has also contributed to this trend in adoption.