User-side trip payment
As technology has evolved, so have fare media, moving from cash to physical tickets or cards to virtual payment systems. Online payment (or “e-fare”) allows users to pay directly by using their mobile devices, such as smartphones. E-fares can be charged through a third-party vendor (e.g., credit card company, Venmo) or through the agency’s app. Many online payments also involve contactless payment, which uses a debit, credit, or smartcard—also known as a chip card—operated through RFID technology or near-field communication technology.
It is possible for multiple agencies to support trip payment through a single centralized payment system (e.g., a regional fare payment system). Regional fare payment systems show their value when transit agency service areas are geographically adjacent to one another and where riders are often crossing these jurisdictional boundaries. Having a regional fare payment system enables users to cross jurisdictional boundaries more easily and can lead to cost savings for users when consecutive trips are priced together.
Provider-side fare collection and reconciliation
A payment system that operates across all One-Call/One-Click agencies will need to take into account costs by trip type and by agency, administrative costs for collecting fares, and the method for sharing out revenues. Costs by trip types and by agency may involve differentials based on the mode used, distance traveled, travel day and time, and discounts for certain users.
As soon as multiple agencies unite to form a regional fare payment system, revenue and cost reconciliation enter the picture. For example, if a user’s trip originates in one service area and ends in another, the two agencies would need to determine how to share the fare for that trip. In addition, the cost of providing the trip, which often surpasses the fare, must be tracked in the accounting system and shared across multiple agencies. Areas with a regional fare payment system across multiple agencies require complex accounting systems and robust data collection, such as transit system entry and exit data.
In addition, a cross-agency fare collection system must integrate similar or identical fare policies, such as allowing children or caregivers to ride for free. Otherwise, users would need to remember different policies for each agency, leading to confusion and challenges for both agency and user.