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Capacity Building is Key for Accelerating Open-loop Payments Adoption Among Transit Agencies

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  • Pike, Susan PhD
  • Matute, Juan
  • Reginald, Monisha
  • Saphores, Jean-Daniel PhD

Abstract

Open-loop payments systems allow riders to pay fares using general-purpose payment methods like credit cards, debit cards, or mobile wallets (Apple Pay, Google Pay), rather than being limited to a single transit agency’s own payment system. Broad adoption of open-loop payments offers major benefits for public transit, including lower costs, greater convenience for riders, and improved operational efficiency. The California Integrated Travel Project (Cal-ITP) has helped pave the way for transit agencies interested in this technology by providing resources, guidance, and hands-on support. Cal-ITP works directly with transit agencies to address known challenges and identify solutions to emerging barriers. Understanding how agencies decide whether to adopt open-loop and other technologies is key to ensuring the effectiveness of programs like Cal-ITP. To explore this, we surveyed transit agencies in California to identify the factors that influence adoption of open-loop payments.

Suggested Citation

  • Pike, Susan PhD & Matute, Juan & Reginald, Monisha & Saphores, Jean-Daniel PhD, 2025. "Capacity Building is Key for Accelerating Open-loop Payments Adoption Among Transit Agencies," Institute of Transportation Studies, Working Paper Series qt0xk7v8g8, Institute of Transportation Studies, UC Davis.
    • Handle: RePEc:cdl:itsdav:qt0xk7v8g8
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