New toll transponder payment technology launches in Massachusetts


A breakthrough in-vehicle payment system that lets drivers use tolling transponders to simplify and speed-up non-toll transactions has been launched at a gas station in Massachusetts.

Developed by Boston-based in-vehicle payment innovator Verdeva, the PaybyCar system enables drivers to purchase gas from their car without taking out cash, a credit card or a mobile app. Launched in the town of Westborough, drivers with E-ZPass toll transponders that have registered on the PayByCar website will be able to easily pay for their fuel at the Alltown Mobil gas station located at 130 Turnpike Road, on the eastbound side of Route 9, using only their transponders.

PayByCar is ‘frictionless’, with drivers opting-in to the program and choosing the payment method, such as credit or debit card or e-wallet, that they will be using for non-toll charges. Purchases through PayByCar do not go through a regular E-ZPass toll account, but are charged directly to the chosen payment method. When a member drives up to a participating retailer, a PayByCar RFID (Radio Frequency Identification) reader recognizes the toll transponder on the car and the presence of the driver’s cell phone. The system sends an SMS text message to the user’s smartphone, and they reply with just the pump number. PayByCar automatically turns that pump on, registers the transaction in the non-tolling account, charges the card and sends an email receipt with retail offers for that visit.

In February 2018, Verdeva formed a unique agreement with the E-ZPass Group, which operates the world’s largest interoperable toll collection program. The E-ZPass transponder is currently used in over 35 million vehicles in 17 states across much of the USA. Following the pilot deployment in Massachusetts, the PayByCar technology will be rolled out in other areas across the E-ZPass network and will soon be available for other kinds of transactions, such as paying at convenience stores, car washes, drive thrus and restaurants.

“We chose the MetroWest area to launch this new technology, and Westborough, Massachusetts specifically, because the community matches our target market demography,” explained Anand Raman, president and COO of PayByCar. “Close to 495 and the Mass Pike, Westborough has a lot of daily commuters with E-ZPass transponders. PayByCar gives them use of a proven and familiar technology in a completely new way.”

Mark Cosenza is senior vice president of Global Partners, the owner of Alltown convenience stores, which will be rolling out PayByCar technology to additional locations this year. He said, “PayByCar aligns with our strategy of being first to market with innovative solutions that enhance the overall experience for our guests. PayByCar is easy to use and enables commuters to get in and out of the family of Global locations faster.”

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Adam joined the company in 1994, and has been News Editor of TTT since 2009. In his other role as Circulation Manager, he helped create the original Traffic Technology International distribution list 23 years ago, and has been working on it ever since. Outside of work, he is a keen fisherman, runs a drumming band, and plays an ancient version of cricket.