Investing.com -- New York’s Metropolitan Transportation Authority (MTA) has announced a shift in its fare payment system, moving away from the 32-year-old MetroCard to a more modern tap-and-go method. The MTA has set December 31, 2025 as the final day for MetroCard sales and distribution. The tap-and-go system allows riders to pay fares using digital wallets, contactless credit and debit cards, and OMNY cards.
For those who prefer physical cards or paying with cash, OMNY cards can be purchased for $1 and loaded or reloaded at various retail locations, online, at Mobile Sales Van locations, or at subway stations with OMNY vending machines. The full rollout of OMNY vending machines across all 472 subway stations in New York City is expected to be completed by fall. As of the fall of 2025, retail partners will stop selling MetroCards.
MTA Chair and CEO Janno Lieber stated that the tap-and-go system, already used by 65% of MTA riders, offers greater convenience and opens the door for new discounts and promotions. The contactless system, according to New York City Transit President Demetrius Crichlow, has greatly simplified the use of the MTA, making it faster, easier, and more convenient for riders.
MetroCards will continue to be accepted into 2026, with an official final acceptance date to be announced later. Balances remaining on MetroCards will be eligible for transfer or reimbursement two years from the card’s expiration date. To transfer funds, customers can bring an OMNY card and their remaining MetroCards to any of the Mobile Van locations, Customer Service Centers located in 15 stations, or to Lower Manhattan at 3 Stone St.
The shift to a contactless payment system offers potential for new promotions, discounts, and special deals for tourists. It may also lead to a loyalty program similar to frequent flyer airline programs. Additionally, the contactless system will aid the MTA in fare compliance efforts, allowing the Authority to explore global technology systems for proof of payment verification.
The contactless fare system also introduces a fare-capping feature, which automatically provides riders with the best value. This feature eliminates the need for customers to pre-pay for multiple trips to receive a discount, potentially leaving $40 million of fare value annually unutilized. Once a customer has paid $34 (or $17 for enrolled Reduced-Fare customers) in fares, they receive free, unlimited rides for the rest of the week. This fare cap is reached nearly 1 million times every month, providing customers with over $8 million worth of free trips every month.
The MTA forecasts an annual operating savings of at least $20 million by eliminating the sale of MetroCards and fully transitioning to the tap-and-go system. This saving is expected to come from reduced costs related to MetroCard production and distribution, vending machine repairs, and cash collection and handling.
The transition to the tap-and-go fare technology is now available to Reduced-Fare, Fair Fares, Access-a-Ride and pre-tax commuter benefit customers, as well as New York City students. Currently, 85% of regular fare customers and 55% of reduced-fare customers are using the OMNY system, overall, 65% of riders across all categories are using the tap-and-go system.
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