The future of payment processing is here. With the shift to “EMV” chipped cards, nearly every American now has the ability to “tap and pay,” with 1 billion capable cards now in play in the U.S. alone. In an environment that now calls for decreased contact, there is no better time to upgrade to this cost-saving, time-saving technology.
Contactless payment is a safe, secure form of debit or credit payment using a combination of two cutting-edge technologies: RFID and NFC.
RFID (radio frequency identification) and NFC (near-field communication) work together to enable a simple “tap” of a card on a processor box to wirelessly transfer information and process payments. There is no need for a PIN or signature, and the transaction is completed much more quickly than traditional swipe or chip insert methods.
In recent years, hundreds of millions of people have had their credit and debit cards converted to “chip” cards, technically known as EMV chip cards. This upgrade was pushed by banks as older cards expired and were replaced. In the U.S., these cards are often used by inserting into a reader, waiting a moment, and letting the credit card processor verify payment. However, these chips have a much more useful application that has been slowly rolling out as more and more merchants upgrade to POS systems that can handle contactless payments.
This new generation of credit and debit cards contain EMV chips that are, in actuality, a very small computer that can communicate wirelessly with properly equipped POS systems.
When the payment information is transmitted, the data is encrypted, making contactless payments more secure. As an additional layer of security, this system uses dynamic card verification, which allows one-time use verification codes. Even if a card’s information is stolen and recreated with a counterfeit card, it cannot be used with contactless payment processors due to the dynamic verification system.
In fact, contactless technology is so secure it is trusted by the Department of State for ePassports as well as federal agencies, first responders, and others who value security. The technology was also heavily pushed by the “Big 3” credit cards (American Express, MasterCard, and Visa), which knew there would be less fraud with this payment method, a problem which costs their industry billions.
Genfare has been the leading pioneer of transit fare payment for decades. Today, our contactless payment technology combined with our smartphone app provides the speed, safety, convenience, and security that today’s transit users demand.
There are several key benefits to contactless payments that are essential for Genfare’s users.
Hard data shows that contactless payments are the quickest form of payment. They are over 50% faster than traditional card swiping or chip inserts, and over 60% faster than cash. Other studies show each contactless transaction can save up to 18 seconds over cash—that’s nearly a minute for every three passengers.
When seconds count to maintain a transit schedule, contactless payments significantly increase efficiency.
By loading a credit, debit, or other bank information to a user’s smartphone “wallet,” a contactless payment can be performed by placing a smartphone near the payment processor. Riders love the convenience of using their phones, which are often at hand more easily than digging through a wallet, bag, or purse.
Genfare’s smartphone apps also make the purchase of passes, checking of routes, and other information easier for riders to access. All together, the Genfare program of apps and fareboxes allows a modern solution to modern transit problems.
In truth, offering contactless payments will be all but a necessity in just a few short years. Currently, 85% of POS systems offered in typical retail environments have the capability of processing contactless payments. Once consumers are in the habit of contactless payment, they demand it at more and more locations, including transit systems.
Most public transit systems will still need to accept cash payments. Some municipalities worry about discrimination toward riders who cannot use a bank account or cannot afford a smartphone. Whatever farebox system is deployed, the ability to use contactless payments and cash is key. Genfare has several options that allow both payment types.
For cities still grappling with the COVID-19 pandemic, it is paramount to reduce contact to help keep employees and riders safe. Accepting cash directly or lengthening interactions can introduce unnecessary risk. Contactless payments allow a quick process that doesn’t require personal interaction.