Contactless Payments and the Transportation Industry

Contactless, tap to pay transactions make up one-third of all payments on a worldwide scale. This industry was already experiencing an increase prior to the pandemic, and now there is an excess of 300 million contactless cards that are in circulation. Contactless payments systems are being accepted globally in an effort to offer a clean and safe process at the point of sale, which is of an emphasized importance with individuals during their return to public transportation. A variety of payment networks have begun the process of assisting transit operators globally in switching over to an open-loop payment system, in which consumers will be able to just tap their contactless payment device in order to ride. 

While the immediate benefit to contactless payment may be related to health and a higher degree of hygiene, tap-to-pay also offers a much easier and less time-consuming process for purchasing physical tickets or cards for ride entry. In previous years, consumers frequently experienced issues with the various payment requirements that differed per transportation option. With the increasing adoption of tap to pay, the difficulty in finding out which payment method is necessary anytime you use a new transport provider would be completely rectified. This method introduces a universal transit experience on a worldwide scale that would be interchangeable anywhere you go and eliminates the challenges a multitude of users face on an everyday basis.

The contactless payment method for transportation was originally introduced in London and was seen as a revolution that allowed individuals to pay for various methods of transport in the same way they would purchase their coffee in the morning. There was no longer any necessity in paying for physical tickets or using an Oyster card to access any transport they needed. Major cities like New York, Boston, and Miami quickly followed their lead, seeing the potential in this new method of transit payment and its ability to lower cash handling expenses and the use of closed-loop cards. With their cloud-based payment system in place, agencies providing transport services are now given access to a convenient and low-cost method for contactless payments.

Outside the realm of transportation, contactless payments and readers have seen a vast amount of application as more industries come to realize the improvements and efficiencies of their implementation in their respective platforms. With such an immensity in its level of utilization, contactless readers are being used for car washes, cash-free gaming, kiddie rides, and even in correlation with charitable donations. The possibilities are potentially limitless if the usefulness of these readers is fully recognized and applied to its full extent, which would make transactions in any given industry easier than ever before. 

The Ingenico Open 1500 & 2500

The Ingenico Open 1500 & 2500 are members of a new generation of unattended devices that unite the finest aspects of the transport and payment world. These unique and innovative open readers can be integrated into steel or plastic enclosures such as busses, tram validators and railway gates as well as kiosk mounts. They are PCI-certified and dedicated contactless readers that enable new use cases revolving around contactless ticketing, mobile and IOT payments. The modules are also suitable for contactless payments in retail and hospitality such as retail lockers and QSR drive-thru. Design specifications and other noteworthy details are listed below.

Highest security 

PCI PTS 5.1 certified, the Open 1500/2500 is natively designed to meet local regulations and ensure long-term compliance.

Contactless/NFC payment acceptance

The Open 1500/2500 enables all contactless payment methods: Visa, Mastercard, Amex, Discover, CUP, Interact, Flash, ApplePay, Google Pay and more.

Multiple use cases

The Open 1500/2500 can manage multiple use cases from contactless ticketing in transportation to QSR Drive-Thru in hospitality to even retail lockers.

Compliant with multiple standards

The Open 1500/2500 is compliant with standards for use in fixed or mobile environments across multiple industries (transport, retail, etc.).

Easy mechanical integration in steel enclosures: Open/2500

Thanks to its flush design and large contactless landing zone, the Open/2500 fits perfectly in steel enclosures in a bus or subway turnstile or into a kiosk for retail lockers and QSR drive-thrus. The part visible to consumers includes an RGB backlit landing zone and 6 rows of 4 LEDs

Easy mechanical integration in embedded validators or other outdoor enclosures: Open/1500

Thanks to its sleek design, the Open/1500 fits perfectly in a plastic validator in a bus or a 

train or into a kiosk enclosure for retail lockers and QSR drive-thrus. The part visible to

consumers includes a backlit RGB and RGB LEDs.

Powerful processor with large memory 

Based on the most powerful processor of the Telium TETRA range with a large amount of memory, the Open/2500 has the flexibility to fit all open payment usage cases.

Highly ruggedized and durable 

Thanks to its robust design (IK10) and high protection against water (IP65) the Open/2500 stands up to the most demanding indoor and outdoor environments. Thanks to an additional removable battery, the auxiliary battery life extends the device’s overall life.

Money20/20 and a Brief Overview of Fintech

A place where financial technology professionals meet to discuss and form the financial landscape of the future, Money20/20 is the universal leader in premium content, sales and connections platform for the global money ecosystem. In the realm of events that cover payments and innovation for financial services, Money20/20 has no equal. It is seen as the industry’s largest multi-track conference and exhibition with more than 11,500 attendants from over 3,400 companies in 100 countries. More than 2,100 of these attendants are C-suite executives, all looking to discover new ideas and trends in the industry during this memorable 4-day experience. 

After over a year of online meetings and events, Money20/20 is ready to offer an opportunity to take part in something that pushes the boundaries of what some consider to be just a networking event. With an immersive and reimagined experience in mind, this year’s experience will bring together the fintech and financial services industries together in a way that will build promising programs in the future, provide tools for growth, and offer those who attend the opportunity to experience moments of connectivity available only at Money20/20. 

This year’s 4-day event will take place at The Venetian Resort in Las Vegas from October 24th to the 27th with a massive amount of the resort dedicated entirely for the show. Inside the largest hotel in Las Vegas is 2.25 million square feet of exhibits, meeting spaces, luxury suites and restaurants renowned worldwide.  

While the basics of financial technology and its industry are common knowledge to some, many individuals find it difficult to grasp the concept behind it and comprehend how it relates to their day-to-day interactions with payments, banking, and other related processes. By understanding the history of fintech and seeing its application in the world in the past centuries, it becomes easier to see the bigger picture and all of its relevancies in the modern-day

In plain text, fintech is simply technology that improves the attributes of financial services. While the concept has been used for more than a century, it hasn’t gained noticeable momentum until the 21st century. Thought of now as primarily related to cryptocurrency and banking, fintech can actually be linked all the way back to the 19th century when money was transferred through telegram and sometimes morse code. It may not sound very exciting, but it’s fascinating to see how the industry has been molded and changed over the course of history. 

Fintech is often looked at as having three and a half different eras, each with a change in the market that impacted how individuals connected with their money. The first took place from 1886-1967 and related to the creation of the foundation and structure that supports globalized financial services. The first-ever electronic transfer took place during this time using telegram and morse code, which was seen as a revolutionary advancement in the industry.

The second era took place from 1967-2008, highlighted by its switch from the analog to the digitalization of finances. The NASDAQ was created during this time as well as SWIFT, a communication system for financial institutions allowing a variety of cross-border payments. During this time, financial perception changed with the online craze taking over and bringing about the first steps towards digital banking in the 1990s. 

The third era of fintech, taking place from 2008-present day, marks the full transition of mobile devices as the primary way consumers interact with the web and financial services. Thought of as the era of the start-up, there is a previously unseen thirst for innovation between investors and consumers alike, bringing along with it a variety of vast new products and services. Pre-existing banks have even begun to re-establish themselves as start-ups in an effort to push forward from the banking system of the second fintech era. Digital banking creation has never been easier, and the ease of use that goes along with it is also unmatched for consumers. 

Fintech 3.5 doesn’t fall under a specific time span like the other three era’s, however it is crucial in the way that consumer behavior is accounted for and the way in which they interact with the internet in this third era. It also accounts for fintech usage between countries, with China and India currently using the most in the world. These two countries have yet to be faced with any sort of physical banking infrastructure, which allows them to create solutions to fintech issues quicker than any of their counterparts. 

The future of fintech is driven to offering the newest innovation to the world through technological means and through machine learning. The world is in the midst of recovering from a massive pandemic, but this type of innovation isn’t easily restricted when there is such a strong driving force behind it. There will continue to be a constant evolution in the way we interact with banks and other companies technologically, and the experience gained from these advancements will help customer relationships grow stronger throughout various companies attached to the fintech industry. Simply put, fintech is expected to revolutionize the way money is handled, managed and overseen within the realm of integrated payment providers.