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In a move that will help expand the acceptance of contactless payment cards in transit systems, Cubic Transportation Systems Inc. announced today it will integrate Vivotech Inc.'s contactless payment software into its Tri-Reader platforms. The integrated system will enable Cubic fare systems to accept MasterCard Worldwide's PayPass, Visa Inc.'s PayWave, American Express Co.'s Express Pay and Discover Financial Services' Zip products. Currently, Cubic systems accept proprietary cards developed for each transportation system. "Cubic's commitment to providing open standards and interoperability for the transit market is furthered by this agreement," Cubic President Steve Shewmaker said in a statement. "It also represents the cross-industry collaboration that is needed between the core suppliers to the transit market and those serving the electronic payments industry." Market observers note that this deal could be a coup for the card networks because they can tap into the transit payment market. "It opens up a much bigger opportunity for the branded networks to start collecting on those transaction fees" and convert small ticket purchases to their cards, says Adil Moussa, analyst at Boston-based Aite Group. "The networks have been trying to penetrate the transit market for such a long time." Santa Clara, Calif.-based Vivotech, which develops contactless and Near-Field Communication (NFC) mobile payment systems, will maintain the certifications as network and operating rules evolve, Cubic says. San Diego-based Cubic is one of the largest suppliers of public transportation fare systems and has installed more than 60,000 Tri-Readers in 17 markets around the world, including London's Oyster card system, Washington's SmarTrip system and New York/New Jersey's SmartLink system. Vivotech has shipped more than 470,000 contactless terminals to more than 35 countries.
