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Fare payment technologies for public transit have evolved from paper tickets and tokens to magnetic stripe cards, smart cards, and mobile devices. These next generation transit fare payment (NGFP) systems can include payment media issued by both the transit agency as well as organizations outside the transit agency. A major innovation is the movement toward non-proprietary payment systems, meaning systems that use open interfaces and standardized devices. This report addresses how NGFP systems can be designed to improve the customer experience, streamline transit system operation, and integrate transit more effectively within the broader context of mobility management. This report was developed through a targeted literature review and interviews with professionals involved in the public transit fare payment industry. This research presents four sets of design attributes in transit fare payment system design: (1) single versus multiagency operating environments; (2) proprietary fare payment systems versus standards-based systems that comply with the data and technology specifications used by the financial payments industry for contactless bankcards; (3) card versus account-based fare payment systems; and (4) closed fare payment systems versus open loop systems. The report then evaluates the relative capabilities of different NGFP system design and technology approaches, and concludes with a discussion of implementation strategies and best practices.The report concludes with an evaluation of the relative capabilities of NGFP systems and a discussion of implementation strategies and best practices.
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