New York Subway gets wireless payment cards

CitiGroup is to pilot the use of contactless payment systems in the New York Subway.

Selected customers will be able to pay for a train journey at the subway entrance by tapping a card on a turnstile reader, much like London's Oyster card scheme on the Tube.

The bank has teamed with MasterCard, which has installed PayPass tag readers in some stations. The readers display a logo so people know which turnstiles accept their cards.

TJ Sharkey, vice president of business development for MasterCard, said in a statement: "The goal of this trial is to evaluate the speed and convenience that contactless payments can provide to New York's busy commuters. As anyone who has ever commuted through the subway system knows well, time is a critical factor."

The cards can be used anywhere that PayPass is installed, including McDonald's or 7-Eleven stores. The six-month trial is set to begin later this year.

Tokyo dwellers are also using contactless payments in Japanese railway stations.

Japan Rail recently launched its Mobile Suica service, which allows people to pay for their journey by swiping a 'mobile phone wallet' - a handset with contactless payment capabilities - over the turnstile reader.

London's Oyster card e-money scheme is set to begin this year, which will allow commuters to buy goods or parking time with their travel cards.