Could Transit Systems Become The Next Open-Loop Prepaid Channel?

by Mercator Advisory Group 0

Cubic Transportation Systems Inc. and PATCO, the Delaware River Port Authority, launched a pilot project on Sept. 26 that would allow commuters to pay transit fares with a general purpose reloadable, Visa-branded card. The pilot could lead to changes in the industry because it allows commuters to load their cards at kiosks located in transit stations using cash for no fee and offers a way to pay bills and access financial services.

The PATCO Wave & Pay ANYWHERE Visa Prepaid Card is a contactless, general purpose, reloadable card. It is one of the lowest fee prepaid cards on the market. To participate, PATCO riders can get a free PATCO Wave & Pay ANYWHERE Visa(R) Prepaid Card with no enrollment free from brand ambassadors who will be on site for the first two weeks of the pilot at six PATCO stations where special kiosks will be located to enable customers to load their cards. Customers can also order and register their cards online at . Riders use the card to wave and pay at PATCO gates and parking terminals and anywhere Visa debit cards are accepted, including telephone and online purchases and bill payment. The cards can be loaded, reloaded and managed many ways, including online. Once the card has been registered, it is FDIC insured and can be used for cash back on purchases and for ATM withdrawals.

Distribution and reloading are two puzzles that every prepaid card provider must solve. A transit system offers a large scale infrastructure that can be tapped into to provide easy access to both of these things for cardholders and potential cardholders. This pilot should be watched closely by the industry both for its successes and lessons learned.

See the fee schedule at:

Read Mercator’s Report about Open-Loop Cards and Transit Systems at:

Read the full press release at:

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