Peppercoin Demonstrates Contactless Transit Payments

Peppercoin's unique approach allows transit passengers to use their preferred credit or debit card as a ride pass, rather than purchasing a separate specialized transit pass. Riders can also use the system to prepay for multi-ride, season or period passes, which can be virtually loaded onto the rider's credit or debit card. The card can then be automatically replenished similar to toll collecting systems such as EZPass.

According to a survey conducted by independent research firm Ipsos Insight in November 2005, more than one in three American consumers would be willing to use a credit card for purchasing transit services.

"Contactless fare payment with a regular debit or credit card brings added speed, convenience and efficiency to people's mass transit travel, including their daily commute," said Mark Friedman, president and CEO of Peppercoin. "The system will be a great benefit for transit operators as well, and we are looking forward to seeing this prototype become a reality in the transportation system."

For operators, Peppercoin's solution will reduce the cost and complexity associated with proprietary smart card AFC systems. It also reduces the operator's costs associated with handling cash, which can cost as much as 20 cents per dollar paid.

Peppercoin teamed with On Track Innovations Ltd, a global leader in contactless smart card technologies, to enable this highly innovative solution. With OTI's Saturn 5000 contactless card reader, transit riders will be able to simply touch and pay as they board their subways or buses.

"Combining OTI's contactless products with Peppercoin's ability to process small payments provides a quantum leap in convenience for transit riders, while reducing costs for operators," said Ohad Bashan, president and CEO of OTI America. "It will help reduce bottlenecks as people enter the subway or board the bus."