Open & Closed Loop for Transit Execs

This page introduces modern fare collection—also known as ticketing—technology designed for an audience that may not be experts in all three areas: information technology, payment processing, and electronic transit fare collection.

Our audience includes city mayors, councilors, transit commission executives, and personnel from transit agencies who are responsible for ensuring the efficient operation of public transit fare collection systems.

In the following three videos, you will be introduced to three distinct yet often complementary business and technological models of fare collection. Let’s embark on this journey together!

Understanding Closed Loop

Explore the ins and outs of closed-loop transit fare collection systems, their advantages, and limitations. In this video, we provide an overview of closed-loop transit fare collection systems, where each transit agency operates its own fare system that is not compatible with others. Join us as we dive into how closed-loop systems function, what components they consist of, and their strengths and weaknesses. Closed-loop transit fare systems allow passengers to pay fares using reusable mediums, typically contactless cards or mobile apps. While contactless media is the primary method, some transit environments also utilize barcode media.

Understanding Classic Open Loop

In this second video of our three-part series, we will examine both the benefits and the challenges of implementing open-loop systems in modern public transit.

Open-loop systems can enhance your city’s appeal, especially in high-tourist areas, by providing seamless access to transit services. Additionally, they improve the patron experience by reducing the need for additional transit cards, streamlining the process for both residents and visitors. While open-loop ticketing brings clear advantages, it also introduces challenges, such as rising costs of fare collection (COFC) and managing the complexities of payment processing.

Understanding Innovative Open-Loop: Universal Ticketing Agent

UniTiAg is an innovative SaaS platform that enables Transit Agencies (TAs) to sell rides through a common Two-Sided Marketplace (TSMP) infrastructure. By leveraging Open-to-Ride Balances (OTRBs), UniTiAg allows patrons to pay for transit services via open-loop cards, streamlining the fare collection process and significantly reducing costs.

 

Alternatively, you can watch these videos on YouTube:

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