Privatizing the Metro Card

The unbanked – individuals who lack a bank account with a mainstream financial institution – are one of the more broadly disadvantaged groups in American society. There is a great deal of demographic overlap between the unbanked as a cohort and other marginalized groups, notably undocumented immigrants, low-income Blacks and Latinos and non-native English speakers. These groups are an important constituency for transportation agencies in that they are more likely to travel by transit than other Americans. As many transit agencies transition their fare payment systems to radio frequency identification (RFID)-based, “contactless” smartcard or open payment technology linked to a rider’s bank account, there are growing opportunities to enhance multi-modalism in passenger trips, reduce operations costs, increase system profitability, and expand access to fare payment media. However, due to equity requirements of the Civil Rights Act, transit agencies must ensure that the smartcard technology also accommodates the unbanked. Ensuring that transit fare payment systems adequately serve the unbanked requires an assessment of New York’s unbanked population beyond that which is available in cu