A new card is to be introduced for users of the Free Travel Scheme.
The card, which is expected to contain a photograph, signature and a chip with other information about the user is expected to be extended to other public services in the future.
The Data Protection Commissioner has said the card raises data protection issues and that he will be keeping in contact with the Government about its roll-out.
More than 600,000 people are entitled to travel on public and some private transport free of charge.
At the moment they use the Free Travel Pass to do so.
However, plans are now in place to replace that pass with a new card called the PSC or Public Service Card.
It is designed to be more user friendly and to prevent fraud.
Age Action Ireland says it welcomes the introduction of such a card, but that it has some concerns.
Iarnród Éireann and Dublin Bus have also welcomed the card.
They say the current system has much potential for abuse and that the new card should eliminate misuse.
Plans for the introduction of the card were outlined in an audit of the Department of Social and Family Affairs by the Data Protection Commissioner which was published last week.
During that audit, the Commissioner found that although the use of the card is optional, people will not be able to avail of the free travel scheme without it.
