Business View Magazine - January 2024

THREE REASONS FOR YOUR TRANSIT AGENCY TO ADOPT OPEN PAYMENTS We know transit riders like the simplicity of open payments . They don’t have to figure out fare structures, know where to buy a ticket, download an app, or make sure they have cash on hand. They just tap-and-go using whatever payment method they have in their pocket. As many benefits as open payments provide to riders, they present an even bigger opportunity for transit agencies to streamline their operations, reduce costs, and increase ridership and revenue. Three big things happen when open payment is introduced: the cost of cash collection decreases, dwell time reduces, and interoperability increases. DECREASING CASH COLLECTION Collecting cash is expensive and time consuming. As an ardent supporter of equitable mobility , Genfare does not recommend eliminating cash fares, but reducing the amount of cash collected by adopting open payment which has many operational benefits to the transit agency: • Reduced maintenance of hardware: Less cash coming in means lower maintenance and parts replacement costs. • Fewer trips through the vault lane: Fareboxes can be probed and emptied less frequently. • Better security: Every cent is accounted for,and no human errors can occur.Encryption and tokenization methods are extremely secure. • Faster access to revenue: Payments are processed and available the same day unlike cash that takes a couple days before it is processed and banked. • Less staffing pressure: The less money there is to count and move, the fewer people agencies need to staff the counting rooms. REDUCED DWELL TIME Statistics on dwell time suggest that approximately half the time a bus is in service is spent on boarding. Open payment is tap-and-go, allowing riders to board faster and cut back on driver interaction with passengers. Reducing dwell time has the effect of shortening the amount of time it takes a bus to complete its route, making the bus a more attractive choice for riders who have other options. The overall impact is increased ridership and revenue. GREATER INTEROPERABILITY Open payments and the software that supports them simplify the connection of adjacent transit agencies, bike and scooter share, parking, and other modalities that move riders along their journeys. When riders can easily pay for first-mile/last-mile modalities or transfer from an urban to a suburban bus or regional commuter rail without needing a ticket for each, the providers can coordinate discounts, incentives, and trip planning. And that translates to increased ridership and while not adding the administrative burden of shared fare media.