NMI and INIT Collaboration Enhances San Diego Transit System with Seamless ‘Tap-on/Tap-off’ Contactless Payments

Germany-based INIT integrates NMI’s advanced embedded payment technology into its transit ticketing system, prioritising convenience and security for passengers

NMI® a global leader in embedded payments, has partnered with INIT, a leading supplier of public transit ticketing solutions, to implement a cutting-edge payment processing solution for the San Diego Metropolitan Transit System (MTS). This collaboration showcases a new “Tap-on/Tap-off” model that enhances both convenience and security for daily commuters on MTS buses and trolleys. 

The new system has revolutionized how San Diego residents and visitors experience public transit. Passengers can now easily tap their credit or debit card, or use Apple Pay or Google Pay on their mobile devices, at the start and end of their journey, removing the need for traditional tickets or stored-value cards. The fare is automatically calculated to ensure passengers receive the lowest fare possible based on their travel.

With 94% of riders expecting public transit to offer contactless payment, transport operators across the U.S. are upgrading to open-loop ticketing systems, where a payment card or mobile device is used in place of a ticket, to streamline the payment process and provide a more seamless passenger experience. 

INIT used NMI’s straightforward API to embed the NMI Gateway into its transport ticketing solution to establish a secure and efficient ‘open loop’ system.  When a passenger ‘taps on’, the NMI Gateway processes initial authorization and card tokenization, as well as subsequent authorization and settlement at ‘tap-off.’ The NMI Gateway also handles deferred authorization for any transactions that fail or are declined. All card reader terminals involved in this process are installed and operated under NMI’s PCI-validated point-to-point encryption (P2PE) solution, enhancing both physical and transaction security and ensuring compliance with the Payment Card Industry Data Security Standard (PCI DSS). 

With this partnership passengers benefit from enhanced convenience and safety, as it allows them to pay using their preferred contactless methods while improving security and ease of use. MTS also benefits from advanced fraud prevention measures and protection against stolen card usage as the system is fully PCI DSS compliant.

Pete Alcock, Head of Marketing at NMI, said:
“Partnering with INIT and MTS to bring this innovative payment solution to San Diego’s transit system marks a significant step in enhancing transit experiences for passengers through payment innovation and technology. By embedding NMI’s card payment technology into INIT’s software, we are streamlining the ticketing and transaction processes for passengers and operators, as well as providing the highest level of security and fraud protection. Our technology not only offers ease of use and enhanced security but also showcases our commitment to advancing public transit systems globally.”

Andy Singh, Chief Operations Officer, East at INIT, said:
“Our collaboration with NMI is integral to delivering a system that not only meets the current demands of passengers but also highlights our commitment to advanced ticketing processes through cashless and contactless payments.”

The partnership between NMI and INIT underscores a shared vision for enhancing public transportation with modern, secure, and convenient payment solutions. As transit operators across the U.S. continue to adopt open-loop systems, this project serves as a model for others aiming to improve passenger experiences and operational efficiency.

About NMI

NMI is a global leader in embedded payments, powering more than $203 billion in payment volumes every year. From our industry-leading payment gateway technology to our seamless merchant underwriting, acquiring, onboarding and management platform, we enable our partners across the entire payments ecosystem. We help our partners deliver frictionless payment solutions to their customers, offering modularity, flexibility and choice, wherever and however consumers want to pay – online, in-store, in-app, mobile and unattended. And we’re constantly innovating, empowering ISOs, software vendors and payment professionals as they embrace the future of fintech.