Commuters in the southeastern state of Victoria will be able to tap and pay for public transport using their mobile device or payment card.
The Commonwealth Bank of Australia (CBA), which was appointed by Victoria’s Department of Transport and Planning, will enable the transactions via its ticketing system. While a launch date has not been set just yet, once rolled out, residents and visitors will have the option to pay in a contactless manner.
“With the Victorian Government’s announcement of planned improvements to the myki system, Victorians, international and interstate visitors alike, will enjoy the simple, frictionless experience that contactless payments provide public transport users,” said Andrew Hinchliff, Group Executive Institutional Banking & Markets at CBA in a prepared statement.
“We are excited to work with the Department of Transport and Planning to bring contactless payments to the State. Public transport is an integral part of daily life for many Victorians, so we are proud to play a part in improving the commuter experience,” he said.
Contactless Transit Payments Are Gaining Momentum
Contactless payment adoption within the public transport landscape is becoming more widespread, particularly as more countries see the advantages of offering travelers a more seamless payments experience.
In a research study by Interac, 68% of Canadians said using contactless payments would make public transit quicker and more convenient. What’s more, a large share (83%) of respondents said they always have their bank card with them once they leave the house and roughly 67% of respondents said “they would be likely to pay for transit by tapping their debit or credit card, if the option was available.”
Major cities in the U.S., including New York, are making headway in adopting contactless payments for public transport. In fact, the Metropolitan Transportation Authority (MTA) of New York announced that there were one billion taps logged using its OMNY fare payment system as of August 1.
The Netherlands also launched a contactless payment system this year, which works across its public trains, buses, and trams, offering consumers that convenience they crave without having to worry about purchasing different tickets or having to use different types of payment systems.
“The new updates follow the trend of transit systems modernizing ticking options to ease entry with contactless payments,” said Jordan Hirschfield, Director of Prepaid at Javelin Strategy & Research. “While the existing prepaid passes will still be a prominent feature, it also puts focus on the shift from repaid to postpaid, especially for the occasional rider.”
