Cubic Transportation Systems, a subsidiary of San Diego-based Cubic Corporation (NYSE:CUB), and world-leading fare collection systems provider for public transportation, is providing new capabilities for the Cubic designed Tri-Reader to enable an all-in-one reader that will process bank cards, prepaid cards and smart card-enabled mobile phones through an exclusive software development and licensing agreement with ViVOtech, the largest provider of point-of-sale (POS) readers for contactless and Near Field Communication (NFC) mobile phone payments.
With more than 50 million contactless bank cards issued in the U.S. and growing interest among transit operators to add bank card acceptance as a way to pay fares for train and bus rides, this enhanced feature set will add a new level of convenience for those passengers carrying such products. Transit patrons will have the ability to tap a variety of products from various issuing groups as they board trains and busses.
Under the agreement, Cubic will integrate ViVOtech's contactless payment software into the latest generation Tri-Reader® platforms and will obtain type certification for MasterCard Paypass, Visa PayWave, American Express, and Discover cards, which will enable contactless bank card acceptance at Cubic fare collection devices for public transit.
With the new software, the Tri-Reader, a very secure, ISO 14443 Type A- and Type B-compliant smart card processor, will provide a single reader that will seamlessly accept contactless bank cards, innovative new prepaid products like the First Data® GO-Tag(TM) solution, and emerging Near Field Communications (NFC) mobile phone technology, as well as currently issued transit cards and those conforming to national transit standards.
Cubic is the world's largest supplier of integrated fare systems for public transportation and has installed more than 60,000 Tri-Readers across 17 major markets around the world. Major fare programs such as London's Oyster® card system, Washington's SmarTrip® system, and New York/New Jersey's SmartLink® system are all supported by Tri-Reader technology.
ViVOtech's readers and software are used by more than 70 percent of merchants that accept contactless bank cards. As part of overseeing the Tri-Reader certification for bank card processing, ViVOtech will also maintain the certifications as network regulations and operating rules evolve.
"Cubic's commitment to providing open standards and interoperability for the transit market is furthered by this agreement," said Steve Shewmaker, president, Cubic Transportation Systems. "It also represents the cross-industry collaboration that is needed between the core suppliers to the transit market and those serving the electronic payments industry."
"This agreement brings two industry leaders together to the benefit of transit providers and patrons -- by leveraging ViVOtech's market leading contactless bank card and NFC mobile phone payment acceptance solutions into its fare collection platform, Cubic is demonstrating its responsiveness to the transit industry's requirements for greater patron convenience and choice in fare payment options," said Michael Mullagh, CEO of ViVOtech.