E-ZPass may begin to pay for more than just tolls

A Massachusetts company has started a pilot program that expands on the idea of E-ZPass to pay for everything from gas to dinner.

Verdeva hopes to capitalize on the 32 million people who use E-ZPass to pay for tolls throughout the country.

The company's creator said he thought of the idea of expanding on that while sitting in traffic.

Verdeva is developing a product called PayByCar.

Here's how it works: drivers would create payment accounts to use at any businesses that accepts payments via transponder.

Participating businesses would recognize those devices and ping drivers via cell phone to see if they want to pay electronically.

While other companies are working on developing in-vehicle payment options, Verdeva said since it wants to access the E-ZPass transponders that already exist, it gives the company a big head start.

The company has picked three gas stations in Central Mass. for the initial testing of the service.

The pilot program is expected to last up to a year and after that, is expected to be rolled out to a much wider audience.

Cox Media Group