SOURCE: Cubic Corporation

Cubic Corporation

February 02, 2011 07:00 ET

Cubic to Test Open Payment Technology on PATCO

SAN DIEGO, CA--(Marketwire - February 2, 2011) -  PATCO High Speed Line customers will be able to pay transit fares with their credit or debit cards in 2011 under a pilot agreement between Cubic Transportation Systems, Inc., the transportation segment of Cubic Corporation (NYSE: CUB), and the Port Authority Transit Corporation (PATCO), a subsidiary of the Delaware River Port Authority (DRPA).

The PATCO commuter line connects to two other major transit systems that serve the northeast corridor -- New Jersey Transit and the Southeastern Pennsylvania Transportation Authority. Cubic's new "open payment" technology will be integrated across PATCO's 14-mile line between Lindenwold, New Jersey, and Philadelphia, and will simplify how customers pay their fares by eliminating the need to carry a separate transit payment card.

Today, over 70 percent of PATCO customers use the FREEDOM card, the smart card used in the PATCO ticketing and revenue management system developed by Cubic. The pilot will operate in parallel with the current system, and FREEDOM card payment will not be affected by the pilot.

Transit agencies are interested in open payment as a way to reduce the costs associated with managing and distributing their own fare media. They also want to bring the retail experience to transit and make fare payment as convenient as any merchant transaction, by paying for all purchases with one credit or debit card.

"The dominant focus at Cubic is ensuring that the same levels of speed, security and reliability we have built into previous generations of card-based fare collection systems are achieved for open payment," said Philip Dixon, director of new product development for Cubic Transportation Systems. "We're looking forward to introducing our bank card processing system into the PATCO system."

For the first half of the year-long pilot, Cubic's banking partner will issue a branded reloadable prepaid card with a contactless interface that can be used for PATCO rides in addition to retail purchases where branded prepaid cards are accepted.

During the second half of the pilot, any bank card with a contactless chip will be accepted on the PATCO system.

Cubic Corporation (NYSE: CUB) is the parent company of three major business segments: Defense Systems, Mission Support Services and Transportation Systems.

Cubic® Transportation Systems, Inc., is the world's leading turnkey solution provider of automated fare collection systems for public transport including bus, bus rapid transit, light rail, commuter rail, heavy rail, ferry and parking. Cubic's solutions and services include system design, central computer systems, equipment design and manufacturing, device-level software, integration, test, installation, warranty, maintenance, computer hosting services, call centre services, card management and distribution services, financial clearing and settlement, multi-application support and outsourcing services.

Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems. Cubic has delivered over 400 projects in 40 major markets on five continents. Active projects include London; Brisbane (Southeast Queensland) region, Australia; New York / New Jersey region; Washington, D.C. / Baltimore / Virginia region; Los Angeles region; San Diego region; San Francisco region; Minneapolis/St. Paul; Chicago; Atlanta region; Miami (South Florida) region; Vancouver and Edmonton, Canada; Sydney (New South Wales) , Australia; and Scandinavia.

Cubic Defense Systems is a leading provider of realistic combat training systems, cyber technologies, asset tracking solutions, and defense electronics. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services. For more information about Cubic, see the company's Web site at www.cubic.com

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