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Transit agencies and financial companies can work together to develop a contactless credit or debit card payment system for transit fares, according to a white paper released by the Smart Card Alliance.

The financial industry offers American Express™ ExpressPay, MasterCard® PayPass or Visa Contactless cards or devices consumers can use anywhere that contactless payment is accepted, but transit agencies continue to issue their own contactless smart cards as a fare medium.

The white paper assesses how the two industries could collaborate to implement a payment model under which transit agencies could accept contactless financial payment cards directly.

“Transit agencies wish to offer as many payment options to their customers as possible,” said Randy Vanderhoof, executive director of the Smart Card Alliance, in a prepared statement. “Instead of issuing and managing only transit application fare cards, leveraging the financial payments industry infrastructure may be the key to opening up a new set of payment options.”

In addition, the white paper highlights pilot projects under way at MTA New York City Transit and Utah Transit Authority, which are evaluating the use of contactless financial payment cards to pay fares directly at subway gates or on a bus.