Account-based ticketing has many benefits for operators, if the challenges can be overcome. Richard Moore, Product Manager of Rambus Ticketing, gives the low-down
The recent launch of contactless payments on First Glasgow buses, by Transport Minister Humza Yousaf, is just one example of digital transformation in the bus and coach industry.
It marked another sign that transport operators are looking to modernise their offerings. Account-based ticketing (ABT) is set to be a key component in this wider transition.
What is ABT?
ABT securely links a digital ticket, or authorisation to travel, with a payment account that can be used to pay for travel after the journey is taken. The digital ticket can be stored on a smartcard, smartphone or as wearable. ABT will help to replace the paper tickets once used for travel with digital equivalents.
This ticketing technology brings with it an array of benefits for passengers. Users are provided with a convenient tap-and-travel experience, with ticket purchases automatically calculated and charged after the completion of a journey. The solution reduces time spent on ticket transactions and queuing, speeding up journeys.
ABT will help to build a future in which smart ticketing and frictionless travel are the rule, rather than the exception.
In such a future, transit systems will automatically charge passengers the most appropriate fare based on a best fare calculation.The system saves customers money by automatically buying a weekly, monthly, or annual season ticket rather than numerous single fares.
In addition, beyond cost savings, an ABT implementation offers passengers a flexible travel experience, allowing them to conveniently alter travel routes on-the-fly.
Benefits for operators
For operators, ABT involves a fundamental shift of business logic from front office devices to the back office, where infrastructure is cheaper and easier to configure and maintain. ABT also has the positive side-effect of making it easier and quicker to update business rules.
In addition, there is no propagation to worry about, or maintenance of individual devices.
Finally, by signing up and registering their account, the passenger and their travel history are linked to a single identifiable reference point. Operators can then add value for passengers and improve their travel experience.
Challenges faced
While there are clear benefits to modernising travel, implementing ABT presents a unique set of challenges that operators and suppliers must face together.
Firstly, there is the complexity when calculating the best fare, which becomes more difficult when spanning multiple journeys, ticket types and bus operators.
The second challenge relates to revenue protection. This is more of an issue for operators than suppliers, because it involves balancing the risks of payments. Operators will also need to consider whether passengers are registered or anonymous, and if they need to pay a deposit to reduce risk.
If these challenges are properly addressed, then ABT represents a stepping stone towards a frictionless, smart ticketing future for the coach and bus transport sector, where geo-location technologies automatically monitor passenger journeys and seamlessly charge customer accounts.
When executed successfully, ABT holds a wealth of promise, presenting a future vision of meaningful benefits for customers and operators alike.
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