New York to dump Metrocard; to switch to new fare payment system

New York City's transit system yesterday took a significant step toward a more modern way for passengers to pay their fares.

Starting late next year, passengers can wave cellphones or certain kinds of credit or debit cards at the turnstiles in the subway or the fareboxes on buses, like passengers do in London.

A committee of the Metropolitan Transportation Authority (MTA) has approved a $573-million contract for a new fare payment system based on the one in use for several years on the London Underground and London's commuter railroads.

Beginning late next year, new electronic readers would be installed in 500 subway turnstiles and on 600 buses in New York. The readers are expected to reach the rest of the city's subway stations and buses by late 2020.

''It's the next step in bringing us into the 21st century, which we need to do,'' said Joseph J Lhota, the chairman of the transit authority, The New York Times reported. ''It's going to be transformative.''

Passengers will be freed from having to endure frustrating waits in long lines at card-dispensing machines in subway stations, but there will still be machines for people who do not have cellphones or credit or debit cards.

After 2020 the MTA will release its own ''tap card,'' for passengers to choose between using that and their own credit card or phone.

The MTA also plans to create an integrated system to allow riders who use both New York City Transit and the Long Island Rail Road or Metro-North to buy the fares for both at the same time.

The MTA will retain the Metrocard system for each phase in case of a breakdown, The New York Post reported citing a source.

Cubic Corp based in New York City has been tasked with building the new system, and the whole project will cost more than $570 million in capital funds, said the source.