What is Smart Ticketing and How Does it Work?

Smart Ticketing

Smart ticketing is an advanced system that allows transport operators to manage fares through a cash-free, digital process.

The system accommodates all types of payments – such as digital wallets, smart cards, smartphone payments, etc. – and gives both the operator and riders a more efficient way of completing transactions for their journey.

The system operates on cloud-native software, which means all the data collected from fares is stored and accessed digitally. There’s no involvement of cash or physical machines that need to be emptied of coins regularly.

Transit agencies or operators can have easy access to all the crucial data through an intelligent platform, where every payment and a variety of information can be reviewed at any time.

How does smart ticketing work?

To give you an idea of how it works, picture this scenario:

A rider wants to use a transport service, and needs to pay a fare.

Instead of waiting in long queues for the counter, or having to rummage for cash to put in a machine, they simply access the smart ticketing platform on their mobile device.

They can see all the fare options available, select the one they need and complete their payment – with whichever type of payment method they prefer.

Almost instantly, their digital ticket is available to use, and they can access the particular form of transport by scanning their digital ticket on the applicable device.

Alternatively, passengers can pay for transport instantly on board with contactless EMV (cEMV) payments.

This is known as an automated fare collection system, where transport fares are accessed and used through digital software.

Once the smart ticketing software has processed and validated the payment in a secure cloud-based system, it provides the transit operator with accurate, real-time data surrounding the fare. Meanwhile the rider has enjoyed a hassle-free way of purchasing a ticket.

It’s as simple as that!

Why is smart ticketing beneficial?

There’s a wide variety of benefits that comes with smart ticketing systems, including:

  • Secure and fast processing

With smart ticketing, transport operators can process and validate payments much faster, leading to more efficient, streamlined transactions.

The cloud-native software processes payments instantly, giving clear data on each transaction, in real-time.

As well as this, the software offers maximum security for all the sensitive data involved in every payment and enables the operator to promptly detect fraudulent activity.

  • Extensive transport insights

Another huge benefit of smart ticketing is that the software provides extensive insights into the service operations and its riders.

For example, there can be real-time data on the amount of revenue generated from specific transport routes, or within certain periods in the day, for instance.

This essential data will help transit agencies or operators to evaluate customer fare purchases, and gives insight into what strategies could help generate more revenue.

  • A smooth, uninterrupted system

Using a smart ticketing system, it can be easy to detect any problems and avoid the impacts it could have on fare collection.

For instance, the software will show immediately if there are any issues with the validators or problems with payment processing, which can be acted upon quickly to avoid any disruptions to the passenger experience.

Smart ticketing systems are the best way to optimize fare collection, and can be instrumental in improving efficiency for transit operators.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.