Visa’s probing subway tickets payments via smartphone

Visa has started participating in a test program that will enable consumers pay for some New York subway tickets by tapping a credit card or a smartphone at the turnstile.

The program, that was initially commenced by MasterCard Inc, and was exclusive only to MasterCard users, however now it is open to Visa.

 The program allows consumers to buy a subway, bus or train ticket by tapping or waving their credit or debit card, or a sticker attached to the back of their phone, over a turnstile electronic reader, instead of buying a separate ticket.

It was announced Tuesday that consumers will get an ability to use their Visa cards, or in certain cases their smartphones, to buy some subway, train or bus tickets in New York and New Jersey.

In August, Visa unveiled it was working with Bank of America Corp to test smartphone payments in New York.

Besides, Visa also commenced a separate test of contactless transit payments in Los Angeles this month. Under this program, consumers will have to buy special prepaid debit cards, which they can tap to ride a subway or bus, and which can also be used to buy goods or services from other retailers.