The Ticketing or Fare Collection industry, has not dramatically changed in decades. Of course, new ticketing channels have come onto the market and had a significant impact, one of these, mobile ticketing, Masabi pioneered. Now we are helping agencies enable Mobility as a Service (MaaS) and moving them to Account-Based Fare Payments, so passengers no longer even need a ticket or to understand fares. Instead, they just tap and ride using a contactless bank card, mobile phone or smartcard.
Around the globe the Software as a Service (SaaS) delivery model has revolutionized industries, bringing leading solutions to companies of all sizes, quickly and cost-effectively. We expect software to be available on a PAYG basis, to update and improve all the time and to have the flexibility to move provider if we are unsatisfied with the service we receive.
However, this trend has not taken hold in the Fare Collection industry (mobile ticketing aside), which is still dominated by Automated Fare Collection (AFC) providers offering bespoke and customized solutions which agencies purchase and are stuck with for years (sometimes decades) using a Design, Build, Operate, Maintain (DBOM) model.
There are now multiple ways agencies can deliver fare collection technology. These factors are rarely discussed, as until recently there was not really the option to deliver core ticketing services via a Fare Payments platform. However, today this is no longer the case, so it’s important to understand the different ways technology can be delivered to agencies, as well as the benefits and drawbacks these bring.
A Design Build Operate Maintain approach to delivering a new fare collection system to an agency does exactly what it says on the tin. Each agency has to invest time and money developing what they need, and engage a supplier to build a system for them, in order to meet strict and detailed specifications set out in the agencies RFP. Then the system needs to be operated and maintained usually for a significant amount of time.
With a Design Build Operate Maintain model for system delivery, each agency purchases its own solution to fit bespoke specifications, often using bespoke software and hardware. As a result, these systems are expensive to build, maintain and update. This model comes with characteristics which we believe are no longer necessary.
These bespoke AFC projects deliver systems that become outdated far too quickly. There are a number of problems agencies face when purchasing and procuring systems this way. These include;
The ticketing industry is changing as more agencies move away from physically needing to issue tickets, to the convenience of using mobile phones and contactless bank cards, allowing riders to simply tap and ride. The future of ticketing is not about tickets anymore, it’s about fares and payments using an account-based back office and the fare payments movement is leading this change.
Fare Payments-as-a-Service (FPaaS) offers a better approach to providing fare payment services for agencies. Instead of needing to run a DBOM project, agencies and operators can sign up to a Fare Payments platform and pay for services on a pay as you go/subscription basis. This enables agencies to deliver the latest ‘tap and ride’ innovations to riders extremely quickly and grow capabilities as they get released onto the platform. There are a number of Fare Payments platform characteristics which are important to mention;
The addition of mobile ticketing to the Transit app thanks to Masabi, makes the app an even more useful all-in-one solution for riders.
Use the form opposite to get in touch with Masabi directly to discuss any requirements you might have.