Account-Based Ticketing

Account-Based Ticketing (ABT) is a new, promising way of e-ticketing that is different from traditional card-based schemes for fare-collection which allows smarter and ticketless traveling for the public.

ABT offers advantages for the traveler like ease of use in the full mobility chain. It also offers flexibility for public transport authorities and mobility partners, for example with regard to fare changes.

Account-Based Ticketing systems are ‘Open-loop’ meaning it is a Back Office Centric Automatic Fare Collection Systems, not Card Centric Systems.

What is Account-Based Ticketing?

Account-Based Ticketing (ABT) is a ‘ticketless’ way of allowing people to travel on public transport. ABT enables passengers to simply tap or scan a secure token (contactless bank card, phone, or smartcard), linked to an account in the back-office (where all travel and account information is stored) to make a journey.

This back office serves as the hub where riders’ fares are calculated, and transit agencies can apply more flexible and equitable fare rules. Riders can choose a validation method that best suits them, such as tapping a smart card or scanning a QR code on their mobile phone.

The fare is automatically calculated based on a number of factors, such as location and amount of taps during a time window, and is then charged to the passenger post the journey.

ABT systems are often rolled out alongside Contactless EMV where a rider can pay for their travel with a bank card or smartwatch without the need to purchase a ticket.

It's important to remember that having an account does not make a system 'account-based' and if passengers need to purchase a ticket before traveling (you can be pretty sure) it's not account-based.?

How does it work?

Account-Based Ticketing manages the right to travel through the central platform's back office. The ‘ticket’ the passenger holds acts as a 'token' or proof of the right to travel and identifier of a customer’s account.

As a customer taps their token around a system, those taps are collected and passed to the back office, which stores the token’s usage patterns and settles the transaction based on usage to create a product that is charged for. As such, the back office is the primary source of truth, unlike in a card-centric system where it is the card.

Account-based ticketing works with a variety of fare media. This means that transit agencies can offer more options for passengers to purchase a fare and can encourage riders to use their own devices, such as:

• Contactless bank cards, or Contactless EMV (cEMV) are the easiest way to use ABT as most people will always carry a bank card on them at all times.
• Smartphones: The easiest way to enable a mobile phone to work as a token is via a barcode. This is also a popular choice as barcodes work across all smartphones.
• Smartcard: Smartcards are an option used by those who may not have a mobile or contactless bank card. Concessions and entitlements for certain users can also be linked to these smartcards.
• Mobile cEMV: Apple Pay and Google Pay can be used to access ABT services.
• Paper Barcode: Paper tickets can still be used in the form of a barcode; however, they are limited to single use,

and the payment will link with their ‘account’ residing in the back office. This way, there is no need to purchase new devices or apps, and the transactions are seamless. Selecting the right tokens is crucial for a central platform, and choosing one that uses widely used tokens is ideal.

However, it is worth noting that if an agency already has a smartcard or an ID card in circulation, these could both make ideal tokens for people to use.

Key benefits that make ABT the future of transit ticketing:

Improved rider experiences.

Passengers no longer need to buy a ticket as they can travel simply by tapping a secure token, such as a contactless card or phone, on a reader in a station, or on a bus for example. This takes the complexity out of using public transport.

Reduced costs and the best possible fare

Due to a reduction in cash handling and misunderstanding of fares. It also allows agencies to reduce costs through a reduction in physical tickets and physical ticket production, cash handling, and physical infrastructure costs. As the journeys are linked to the user’s account in the back end, agencies can implement rules enabling best-priced fares for riders that will cap your fare and find you the best cost option for the journeys you have made. This takes the confusion away for passengers as they will only be charged for the journeys they do and the best fares to match this.

Multiple token optionality

ABT can be carried out in many ways, giving the user the option to travel using their preferred method whether through a barcode on a phone, tapping a contactless card, or smartcard. This makes the service readily available and accessible to all.

Fare optionality and flexible transfers

As ABT is all digital and the data is sent to software in the back end, it enables the quick implementation of transfer rules for different modes of transit. This means passengers are NOT limited to where they can travel and what mode of transport they use, whilst also considering discounted fares when continuing journeys from trains and tubes to buses.

Easy to maintain

Fare engine in the back office not on the reader. Fare calculations are processed in the back office instead of on the validation unit. This means the system is easier to maintain as it is a single back office instead of a network of locally-hosted devices each of which requires maintenance.

Easy to upgrade

Because the fare logic is managed and calculated in the back-office, there is no fare calculation logic in the hardware. This means that the system can be updated with things like new prices quickly from a central location and, with a platform-based system, can much more easily meet the evolution of technology.

The opportunities for transitioning:

What's in it for Public transport?

Public transport is evolving rapidly with Account-Based Ticketing (ABT) leading a transformation. Imagine a world where paying for transit is seamless, and policies attract new travelers effortlessly. This revolution poses exciting prospects, from enhancing customer experiences to allowing innovative fare policies. But the journey entails hurdles requiring strategic decision-making for transit authorities globally.

Unlocking the Potential of ABT

Account-Based Ticketing promises to streamline operations, enhance customer service, and unleash creative fare policies. By centralizing operations in the back office, ABT simplifies processes like fare updates, online reloads, and refunds. Transit agencies can attract new riders with flexible payment methods and innovative fare types. Transitioning to ABT allows transport operators to rethink their architecture and procurement strategies. Embracing open architectures and APIs will foster a competitive, multi-vendor environment, encouraging innovation. Despite upfront costs, ABT's potential long-term savings and effectiveness in enhancing customer service make it a valuable investment for modern transit systems.

Navigating Challenges and Strategic Decisions

Adopting ABT comes with challenges, including transitioning from entrenched card-centric systems. Decisions such as migration strategy, system validation, and user communication need careful consideration. Transport authorities must weigh whether to transition gradually or with a ‘big bang’ approach. Furthermore, maintaining customer trust is crucial—ensuring secure transactions and consistent service throughout the network is paramount. The shift also offers a chance to address outdated systems and experiment with vendors. Balancing old and new policies requires strategic planning to maximize ABT's benefits while preserving service reliability. Effective collaboration is key to facilitating seamless implementation across different city landscapes.

Sources:

Masabi

Vix Technology

Consult Hyperion

Smart Ticketing Alliance (STA)

Open ABT