Card Networks and Issuers Eager to Hop on Contactless Mass-Transit System

Jun 28, 2019

The way consumers pay to ride transportation systems in major cities can influence payments habits for the public.

Issuers and credit card networks want to be a part of the ongoing introduction of contactless payments in the nation’s biggest transit system, New York City’s Metropolitan Transportation Authority (MTA), because they know it’s an opportunity that will boost their revenues and get them on top of the next big thing.

At the end of May, New York’s transit system began accepting contactless cards at 16 subway stations and on all Staten Island buses in its program, which will eventually reach every form of transportation in the city during the next year and a half.

How Issuers and Networks Are Responding

To prepare all commuters for their chances to tap-and-pay, major issuers are falling over themselves to unveil contactless cards.

What the major issuers have done:

  • JPMorgan Chase & Co. has already issued 20 million contactless Visa credit cards. The bank started doing in 2019. Additionally, Visa’s card comply with the latest EMV contactless standards, which it began enforcing in the spring.
  • American Express offers contactless functionality on most of its cards; the scheme has issued 38 million credit cards in the first quarter of this year.

The public should expect other issuers and schemes to follow, and to look for new opportunities, as well.

In It for the Habit

Issuers and card networks want to be a part of New York’s system because they know 8 million commuters using the contactless card system, likely twice a day, at least five days per week, has power. The more it becomes parts of their daily lives, the more these consumers will use their contactless cards to buy groceries, pay for a hotel room, or buy a new pair of boots.

This is kind of buying behaviors is something no issuer or card scheme is going to want to miss.

Other Reasons Issuers and Credit Card Networks Are So Interested

Issuers and credit networks are chomping at the bit to work with mass transit systems because they know how much revenue is at stake. After contactless systems are fully implemented in New York, the major credit card schemes could be making a total of more than $60 million annually in card transactions revenues.

This is especially great news for schemes, like Mastercard and Visa, that are always looking for new strategies to increase revenue as retail growth stalls.

In Conclusion

As the unveiling of the contactless payment system in New York continue to unveil over the next 18 or so months, watch to see how many embrace it, whether there are any major problems with the system, and what types of flaws it needs to address.

If all goes as everyone hopes it does, this could be a major milestone in the world of contactless payments. Though many still believe there will always be a place for cash, the success of the transit system’s payment system could be the break that cashless advocates have been waiting to see. Nowhere near the end, but definitely a possible beginning of something.

Apply for Merchant Account Services

Businesses that want to get in on the action and offer shoppers something extra should contact eMerchantBroker.comE. MB offers merchant accounts, merchant cash advances, and other types of financing solutions. It is a high-risk merchant account provider that works with businesses no matter their backgrounds and processing histories. Eligible merchants get approved in as little as a few days. Apply online today using its simple and quick application.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

Live Chat