Open Loop Ticketing is the future of mobile ticketing!
Any strategy to rebuild transit passenger numbers will have simple payments as a critical component. It’s a simple change that can make all the difference.
The key to this system is in the name. And the transition to open-loop ticketing is less daunting than many agencies imagine.
With 12bn EMV cards deployed worldwide, and issuance and adoption seeing sustained increases globally, EMV chip provides a trusted foundation that is supporting the ongoing shift away from cash and towards digital payments,” said EMVCo Chair Robin Trickel.
As many as 150 major cities across the globe are considering switching from legacy closed loop payment systems to open loop systems, according to the American Public Transit Association (APTA).
That means moving from agency-operated payment cards to Europay, Mastercard, Visa (EMV) pay platforms that allow transit riders to pay for their transit fare the same way they use their credit or debit card or mobile wallet at coffee shops, convenience stores and supermarkets.
In the postwar years, both Americans and Europeans embraced the automobile. The difference is that European governments continued investing in transit while U.S. cities all but abandoned public transportation. What is the reason for that? The stock answer has always been that American cities suffer from urban sprawl, cheap gas, and a love for the automobile.
Zoomers are a generation that have never known life without the internet and smartphones. They live on social media and when it comes to money and finance – they are charting a new course. 62 percent of Zoomers do not have a bank account and in some emerging markets nearly 50 percent prefer mobile wallets as their choice of payment method. About 25 percent of Zoomers in western markets almost never use cash.