The promise for banks to capture open-loop fare payments might encourage them to roll out more contactless EMV cards, but it depends on the city, surveys show. Also, debate continues about whether more open-loop transit payments will make a real impact on use of contactless at the retail point of sale.
A survey of financial institutions by the U.S. Federal Reserve found that only 18% of respondents rated the importance of support for open-loop transit payments high, “which may correlate to FI locations in or near cities with transit systems that accept open contactless payments,” said a U.S. Federal Reserve Bank of Boston report. Another 44% of respondents rated support for open transit payments as of “medium” importance.
• Federal Reserve Bank of Boston
With contactless EMV cards expected to have a significant footprint in the U.S. in 2020, the debate continues over whether the rollout will promote or harm take-up of NFC mobile payments and whether contactless open-loop transit payments will make a real impact on use of contactless at the retail point of sale.