NEW YORK - Three New York transit agencies are kicking off a contactless payment test today that they hope will show credit and debit cards can replace closed-loop fare cards — and lead to wider use of contactless cards in general.

An earlier test used only MasterCard Inc. cards issued by Citigroup Inc., but this phase expands that to include other issuers and card brands. Observers said the program could spur the use of contactless cards for other purchases and encourage other cities to consider the payments technology for their transit systems.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.