How Payments in Transit has Evolved Over Years and Significance of Automated Fare Collection Systems

How Payments in Transit has Evolved Over Years and Significance of Automated Fare Collection Systems

Sanjeev Patil

CEO at Girmiti Software

Views 1311

How Payments in Transit has Evolved Over Years and Significance of Automated Fare Collection Systems

17.05.2019 10:30 am

Over the years, cashless payments have progressed dynamically with the advent of digital payment technologies. With the wide adoption of digital payments everywhere, expectations of consumers are redefining the digital payments in the transit industry. To enhance customer experience, transit organizations are intensively implementing digital payments as it offers great flexibility and accessibility with decreased operational costs. With digital payments, the scope of transport industry has been expanding tremendously with increased productivity.

Another substantial advancement in digital payments, the rise of contactless payments, fostering the transit payments with fast, reliable and secure transactions.  Augmenting the digital transformation, the issues that cash payments generates in the transportation services are empowering the transport industry to embrace digital solutions like Automated Fare Collection System(AFCS).  AFCS seamlessly integrates several solutions like e-ticketing, Mobile wallets & contactless payments, and connectivity.

Adoption of AFCS by government and private agencies has become rapid as it streamlines the ticketing process and provides the improved productivity by automating the fare collection and ticketing. AFCS, a main module of Transit System acquires transactions that occurs on various components such as automatic gate machines, ticket vending machines, and ticket checking machines and provides, master data.

Businesses are considering and prioritizing their consumer desires of expecting flexibility and convenience in payments so as to lead the competition. Various digital payment solutions provide passengers with multiple-payment channel ability, that ensures payments via any channel of consumer choice.

Without exceptions, the ticket issuing POS or Hand held terminal machines are being made with the pliability of accepting both open loop and closed loop cards. Passengers are enabled to make their payments using debit/credit cards, smart cards issued by the transit agency or mobile wallets with NFC payment capabilities. Smart cards can be topped up using mobile wallets or any debit/credit cards.

With the upsurge in mobile usage, customers are demanding on-the-go mobile payments services so as to not worry about holding cards or cash. Making the transaction process more efficient and accessible, mobile apps and web applications of these transit services are available for the passengers to purchase of tickets online.

The automated gate machines work with single tap payments using QR code or RFID tokens or Transit cards, at entry and exit. It is effortless for passengers to do a ticket purchase on the mobile/web app and it generates a QR code that has to be tapped against the gate.

Another interesting advantage of AFCS is, it solves the concern of commute time due to the delay of transportation services or unseen personal activities. Advanced GPS tracking units are installed in all vehicles, that enables the real time tracking and monitoring of all these vehicles and devices from central command centre. Using the mobile apps or web application, passengers can track their buses and are able to get the fastest services.

These digital solutions provide incredible edge to the agencies or organizations. AFC systems deliver an enormous amount of passenger/vehicle data that aids in improving customer experience and making the transit process more robust and efficient.

Latest blogs

Alan Koenigsberg Visa Business Solutions

Rising to the Global B2B Payments Challenge

In today’s fast-changing business environment, international organisations all over the world increasingly expect global access to finance in real-time. They also expect finance to be available in a way that works for them in any currency and Read more »

Alex Chen FIME

Transit Ticketing in APAC – key takeaways from Singapore

Last month, we visited Singapore for Global Mass Transit’s (GMT) annual Transit Ticketing & Fare Collection APAC conference. Rapidly becoming the event in the APAC transit industry’s calendar, this year’s show didn’t disappoint. Read more »

Faniel Thomas Moneyfarm

What You Need to Know About Stocks and Shares ISAs

Many of us are familiar with the tax-free benefits associated with a standard Individual Savings Account (ISA). However, a variant known as a stocks and shares ISA is becoming an increasingly popular alternative. What is the basic principle behind a Read more »

Simon Richards tekVizion

The parable of the breakfast cereal - and what banks' Ops teams can learn from it

There’s an iconic TV advert in the UK for a breakfast cereal, where even the ‘hero’ can’t eat more than two Shredded Wheat. It was even cited by David Cameron when he was Prime Minister, when he declared he wouldn’t seek a third term. Created in the Read more »

Martijn Groot Asset Control

How Machine Learning is Changing Data Management and Investment Processes for Active Managers

AI and Machine Learning techniques are finding their way into financial services. Ranging from operational efficiencies to more effective detection of fraud and money-laundering, firms are embracing techniques that find patterns, learn from them and Read more »

Related Blogs

Alan Koenigsberg Visa Business Solutions

Rising to the Global B2B Payments Challenge

In today’s fast-changing business environment, international organisations all over the world increasingly expect global access to finance in real-time. They also expect finance to be available in a way that works for them in any currency and Read more »

Anthony Walton Iliad Solutions

Immediate Payments – Readiness

The payments industry is seeing a massive global surge in the implementation or modernisation of Immediate Payment systems. These systems challenge the status quo, and when used effectively create real opportunities for financial institutions to Read more »

Hardik Shah Currencies Direct

Security vs user experience – Are frictionless payments eroding the barriers between risk and usability?

With the advent of the smartphone, and the rise of interconnected devices we’ve seen the creation of a world where practically everyone has instant online access 24/7. In turn, we’ve seen rising demands from consumers for quick and easy access to Read more »

David Orme IDEX Biometrics ASA

Happy tapping: why it’s time for a more secure solution to contactless fraud

Since their launch in 2007, contactless cards have revolutionised the payment industry. Contactless payments overtook chip-and-PIN as of July 2018, with more than 52% of the UK’s monthly card transactions conducted through a contactless card. Read more »

Stéphanie El Rhomri FIME

Smartcards (finally!) get smarter: innovation in payment cards

Since the launch of contactless just over a decade ago, innovation in payment cards has struggled to keep pace. While card payments themselves have steadily risen, in an increasingly mobile and digital age, many are already predicting the death of Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel