The fourth era of public transport: Key considerations for ticketing and payments

By Philippe Vappereau, Chairman of Calypso Networks Association (CNA)

The ongoing uncertainty caused by the Covid-19 pandemic is impossible to avoid. While countries worldwide continue to navigate social distancing and other ongoing restrictions, the prospect of a potential second wave has raised many questions around planning for the ‘new normal.’

This is especially true when it comes to public transport, an industry currently facing new financial challenges. We have witnessed the global pandemic act as a catalyst in driving forwards a fast-paced reaction from the transport industry. It has become obvious that things have irrevocably changed, and overnight we entered a brand new era: the fourth age of public transport.

This new era brings a new wave of innovation, involving the use of technology for contactless payments, essential crowd management, reducing unnecessary interactions, minimising contact points, micromobility transport options, improving passenger flow, and encouraging travel at times when the system is quieter.

Ticketing has experienced a significant transformation. While contactless cards have simplified payments and granted easier and faster access to networks, consumer attitudes during the pandemic are increasing demand for more ‘touch-free’ technology.

Creating the ‘new normal’

Public transport in today’s environment faces a cruel paradox: operating the capacity to handle mass passenger flows when needed, while helping facilitate social distancing to keep people safe as society continues to navigate the pandemic.

Transport operators must accept this new reality and take steps to adapt to it. It’s unlikely that there will be an overnight technological breakthrough which solves all our challenges, but we can assess what technology we have available right now, and identify ways to improve, optimise and revaluate whether there are any untapped possibilities within it.

While transport ticketing technologies are not the sole solution, they can help reduce costs, engage customers, and make it easier to align with social distancing measures.

So, what are the key considerations?

• Use contactless to minimise crowding hotspots:The speed of contactless NFC ticketing today allows a rapid flow of passengers at network entry points and thus helps avoids creating crowds of passengers. It’s well known that ATMs and counters are the areas which are most prone to crowding, which must now be reduced to a minimum. Widespread internet availability enables simple, distance selling solutions, as well as card reloading, helping customers avoid crowded areas.
  

  Philippe Vappereau

• Optimise mobile devices: We should expect travel cards stored on NFC-capable mobile phones to be more popular with passengers in coming months, as customers proactively look for ways to minimise their contact with surfaces in public areas. We should also anticipate more people using such devices as a reader to reload their own physical transport card with funds. This requires cards with ‘microprocessor’ functionality – essentially a smart computer chip – which is capable of offering more purchase options to users, both in person and remotely.

Most travel cards for frequent users contain this chip, but more occasional travellers tend to purchase contactless tickets that use far simpler memory components, which cannot handle remote reloading. These tickets often require expensive booths and vending equipment to process purchases, and can contribute to crowds at stations. Operators should now look to phase them out, handing control to the customer and helping to keep them safe during the pandemic.

• Control spiralling costs: Operators and authorities currently face a nightmare scenario: an unexpected collapse in passenger numbers while having to manage significant costs to ensure essential services can continue. A common issue for public transport providers is that they are tied into expensive, proprietary ticketing software. Solutions that appear to be economically interesting because of their low purchase cost can often have a very high long-term cost, with a very poor economic return on investment for local authorities later down the line.

Delivering flexibility through open standards

As operators and authorities navigate the uncertainty of the coming months, now is not the time to become locked into an inflexible transport setup.

Networks that have already taken this route are beginning to feel trapped. They face the undesirable position of switching from the promise of an offered system, to a revenue sharing obligation in which they are in a weak position to negotiate on equal terms. If there is one thing the pandemic has shown, it is that operators need the freedom to be more agile and collaborate to cope with unexpected challenges.

Open standards give transport authorities and operators control over their ticketing network. This model provides peace of mind that they have a sustainable framework that can evolve and support new technical trends and business requirements in a cost-effective way.

In planning for the months ahead, transport authorities and operators must remain vigilant about the reality of the costs of their systems. Above all, they must ensure that they keep control of their solutions and do not leave it in the hands of big external players. Passengers will not forgive operators and authorities for a disappointing public service, though they are unlikely to turn their frustrations on the financial institutions or other external players tying their hands behind them. And do not forget the issue of sovereignty for the networks and for the public authorities, since ticketing systems must remain an instrument, under their control, for the development of mobility.

We may not yet know the ‘new normal,’ but we know we need to be ready for change. Now more than ever, transport authorities and operators need sustainable ticketing technologies, capable of meeting their expectations in the long term, but also of adapting quickly to new and evolving situations.