New Fare Payment Systems and Payment Technology Introduction

  • Date: November 8, 2022


This guidebook aims to inform transit agencies, in particular small urban, rural, and tribal agencies, about the fare technology systems and payments currently available in the industry. Agencies can use the information found in this guidebook to learn more about the different types of fare systems, payments, and policies available and the benefits and challenges of each. Case studies highlight the lessons learned from transit agencies and can prove helpful for understanding the deployment process first-hand. Building upon these case studies, a general timeline has been included, which outlines the process and considerations from exploration of the fare technology to final deployment.

Whether a transit agency is still exploring new fare technologies or is preparing for deployment, this Guidebook can serve as a tool for navigating the rapidly evolving fare payment technology industry and leveraging best practices.

Why Invest in Innovative Fare Technology?

Increases convenience and customer satisfaction

Advances agency goals

Promotes equity through fare capping

Simplifies route transfers and regional connections

Decreases fare disputes between operator and rider

Eliminates cash transactions – no need for exact change or making change

Simplifies revenue reconciliation by reducing staff time counting cash

Reduces cash collected on-board improving revenue security

Streamlines boarding process which can improve schedule adherence

Increases data access, availability, and visibility into operations

Decreases farebox maintenance

Reduces contact between driver and riders in support of pandemic protocols

Allows riders to use existing technology such as contactless cards, wearables, and smartphones to purchase and use fares