In-Depth: Washington, D.C., Launches Open-Loop Payments on Subway with Overlay Technology; but Transit Agency Incurs Extra Costs
The Washington (D.C.) Metropolitan Area Transit Authority launched open-loop payments Wednesday for full fares on its subway system, following a fast-track, five to six-month implementation that met its target of launching on the subway in time for most WorldPride 2025 events being held in the U.S. capital.
The project is noteworthy because it uses an “open-payment overlay” to enable WMATA’s closed-loop terminals to accept credit and debit cards, including in mobile devices. The concept can offer a quick time to market and potentially cut costs, though is not an option for every agency and comes with some drawbacks. And in WMATA’s case, the agency is spending millions more by paying other vendors to help set up the new system, in addition to its main overlay vendor, Littlepay, Mobility Payments has learned (see below).
Littlepay Beat Out Cubic for Unexpected Contract Win with Major U.S. Agency; Now the Small Australia-Based Vendor Must Deliver
Transit agencies in the U.S. and beyond will be watching to see whether a recent gambit by major agency Washington (D.C.) Metropolitan Area Transit Authority to hire small Australia-based payments service provider Littlepay over its large incumbent supplier, Cubic Transportation Systems, pays off.
WMATA made the unexpected move, as Mobility Payments reported earlier this month, to award an important contract to Littlepay to carry out the agency’s “Open-Payment Overlay” project. The overlay–one of the few projects of its kind globally–seeks to add open-loop acceptance on top of the agency’s existing network of closed-loop terminals quickly and cheaply.
It means that WMATA will have to continue to maintain a completely separate legacy closed-loop system, likely for years to come, using older card-based ticketing technology.
Washington, D.C., Transit Agency Chooses Littlepay over Incumbent Cubic for Open-Loop Upgrade
The Washington (D.C.) Metropolitan Area Transit Authority, or WMATA, has selected small payments service provider Littlepay to roll out its “open-payment overlay project, Mobility Payments has learned.
It’s a surprising choice for the low-cost but much-watched contract, given that the winning vendor was short-listed with the much-larger incumbent, Cubic Transportation Systems. WMATA is looking for a
Tip Sheet: Will Conduent Put Its Transit Fare-Collection Business on Sale Again?
Conduent, a major fare-system vendor, may again be shopping for a buyer for its fare-collection business, sources told Mobility Payments, though the company has not announced it is planning to sell the unit, and a spokesman did not respond to a request for comment.
The U.S.-based vendor famously did an about-face in 2022, with the company putting its transportation segment out for a possible IPO or sale, only to take the segment off the market after four months.
Tip Sheet: Washington, D.C., Short Lists Vendors for Open-Loop Payments Project
The Washington (D.C.) Metropolitan Area Transit Authority, or WMATA, one of the largest subway operators in the U.S., has narrowed its procurement for an open-loop payments project to a short list containing as few as two vendors, Mobility Payments has learned.
The agency would not release the names of the short-listed vendors, but Mobility Payments has learned they include
Top Five U.S. Agency Issues RFP to Add Open Loop to Existing Terminals; Incumbent Cubic Likely in Driver’s Seat
The Washington (D.C.) Metropolitan Area Transit Authority, or WMATA–a top five transit agency in the U.S.–has moved a step closer toward introducing open-loop payments, issuing a recent request for proposal for the technology, Mobility Payments has learned.
The RFP, titled, “Fare Open-Payment Overlay” (download below) seeks to add open-loop functionality to
WMATA in D.C. Rolling Out New Terminals but has No Immediate Plans to Support Open Loop
The Washington (D.C.) Metropolitan Area Transit Authority last month started to replace 1,200 aging faregates for its 91-station metro system and starting next year will do the same with 20-plus year-old fareboxes on board 1,500 buses, including upgraded readers for its closed-loop SmarTrip cards.
Washington, D.C.’s, SmarTrip Latest Closed-Loop Fare Card Added to Pays Wallet
The Washington Metropolitan Area Transit Authority, or WMATA, as expected, has added its closed-loop fare card SmarTrip to Google Pay, following support by Apple Pay for the card last year. The launch Tuesday of SmarTrip for Google Pay is the latest move by an NFC wallet provider to sign up transit authorities globally for its payments service. Wallet providers, such as Google Pay and Apple Pay, are vying to add more fare cards to their payments services to attract more users and transactions.
Los Angeles Transit Authority Follows Through with Plans to Enable TAP Card for Apple Pay; Google Pay to Follow
Another major U.S. transit agency has introduced a virtual closed-loop card for Apple Pay this week, with the Los Angeles County Metropolitan Transportation Authority, or Metro, It comes a couple of days after the Washington (D.C.) Metropolitan Area Transit Authority, or WMATA, announced it had put its SmarTrip closed-loop card on Apple’s NFC-enabled devices, as well.
Apple Enables Virtual SmarTrip Fare Card for Apple Pay in Washington, D.C., with More Closed-Loop Transit Cards Expected This Year in U.S.
Apple added support for its latest closed-loop transit card for Apple Pay, enabling customers of the Washington Metropolitan Area Transit Authority, or WMATA, to tap their NFC-enabled iPhones and Apple Watches to pay for rides with WMATA’s SmarTrip virtual card.