With recent advancements in ICT technology we have seen a rapid spread of cashless payments, in which our day-to-day transactions are accomplished through the use of credit cards, smartphones, and contactless payment cards called ‘transportation IC cards’.

 

The growth of cashless societies has been rapid, especially in China. With the popularity of third-party smartphone payment applications operated by internet giants, mobile payment systems have spread widely in the day-to-day transactions of consumers. Based on the system’s dominating presence in consumer markets, they are expanding their use to include public transportation, which is regarded as a key sector in enhancing user convenience. 

 

In Japan, the first transportation IC card was introduced in 2001 and, since then, over 130 million contactless payment cards have been issued.  The popularity of these transportation IC cards may be attributed to their multi-purpose use.  They can be used not only for transit payments, such as railroad and bus travel, but also as electronic payments for shopping at many stores. In addition, these cards can be mutually utilized with multiple Japanese transit companies. Therefore, the use of transportation IC cards is expanding in many parts of Japan.  

 

The United States has also been active in introducing contactless payment systems.  The Chicago Transit Authority (CTA) introduced a contactless payment card called ‘Ventra Card’ in 2013, which promotes mobile payments on subways and buses. Also, the American Public Transportation Association (APTA) signed a collaboration agreement with the NFC Forum to jointly educate the industry on NFC (Near Field Communication) technologies, supporting the needs of public transportation operators. These are just two examples of the many uses of contactless payment cards in the transit industry in the States.

 

In this rapidly advancing cashless society, JITI USA has invited experts on the subject from Japan, the U.S., and China, to discuss the progress so far, especially milestones accomplished, as well as the future path for improving the convenience of public transportation in a cashless society. 

Makoto Washizu

President , JITI, USA