PURCHASE, N.Y. — MasterCard has announced that New York City taxis are accepting MasterCard's contactless cards beginning this month.

Certain NYC taxis began accepting the payments in June and more than 5,000 NYC taxis are anticipated to accept PayPass by December 2007, the second largest card brand said.

The first taxis in the United States to accept contactless payments were announced by MasterCard in November 2006, in Philadelphia. Today, 1,600 Philadelphia taxis are equipped with systems that accept the contactless payments. In addition to the successful Philadelphia deployment and ongoing New York City rollout, MasterCard has a pilot program in Las Vegas taxis scheduled to be completed later this year. The taxis also accept traditional magnetic stripe payment cards.

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