Transit agencies want open payments but there are challenges

This study explores interest in, and the challenges faced by transit agencies and operators in the adoption of open-loop payment systems. The research team focuses in particular on the ways that agencies view passenger needs in the context of adopting open payments. Challenges with cash payments, an increasingly cashless society, and the expanding offerings of digital payment options have spurred increased interest in open-loop payments among transit operators. Paying for transit with cash can require additional time at boarding, add extra steps for passengers who must pay with exact fare, and result in service inefficiencies. It presents security concerns for drivers, and administrative burdens for agencies. While the full costs of cash handling vary per agency the cost of handling and moving cash may be considerable. Pioneering transit agencies are adopting open payment systems that accept credit cards, debit cards, and smartphone/watch-based transactions. However, there is a huge div...