The Benefits of Modular Ticketing Solutions for Public Transit
26-May-2023 10:38:34
by James Gooch

Break Free from Closed Legacy Ticketing Systems with Modular Fare Payment Solutions

Hey there fellow transit enthusiast! Public transportation is the lifeblood of any city, but managing fare collection systems can be complex and costly, especially for larger agencies.

In the past, transport authorities would purchase a legacy Automatic Fare Collection (AFC) system that would lock them into a monopoly contract for the next 10 years or so. Transport authorities and agencies had to build their own bespoke systems. These systems had a high total cost of ownership and stifled innovation as there was only one supplier and no incentive to innovate unless through expensive change orders.

Lock-in led to the solution decaying over time as they were powered by (single-instance) bespoke fare collection systems. The result was a situation where agencies had less control over their own destiny and little choice.

The key problems with closed single-instance AFC systems:

  1. Agency Lock-in
  2. Higher Costs
  3. Lack of Innovation
  4. Limited Choice and Control

However, this is now changing with the introduction of Fare Payments-as-a-Service platforms and modular ticketing (fare payment) solutions.

Modular solutions are great because they open up the suppliers available to cities to multiple best-in-class vendors and their systems. This approach helps drive innovation and means new AFC solutions can more easily be powered by shared (multi-tenant / multi-agency) platforms and the benefits they bring.

Modular solutions are quickly becoming a popular option for transport authorities in larger cities around the globe. The benefits of modular solutions go beyond just cost savings and innovation. They also provide transport authorities with far more control and choice. This means that they can choose the best solutions for their specific needs and are not forced to use a single vendor’s closed solution. If the agency is unhappy with a vendor's performance then they can be replaced with a new supplier and solution as required.

With more and more cities embracing modular fare collection solutions, we can expect to see significant improvements in public transportation in the coming years.


What is a Modular Fare Collection Solution?

Unlike closed legacy systems, open modular solutions allow transport authorities to work with multiple vendors for different aspects of the fare collection system - not just a single vendor's solution suite or closed partner ecosystem.

For example, a modular solution may include one supplier as the Systems Integrator, another for the Back Office fare payment solution, and another for validation hardware.

Additionally, transport authorities have the option to include other aspects of the fare collection solution in the procurement, which may be procured in one go or in multiple lots, such as a mobile app supplier, farebox supplier, Ticket Vending Machine supplier etc. Alternatively, these aspects may be delivered through the Integrators/back-office providers' partner network.

This modular approach allows transport authorities to create a best-in-class solution that best fits their requirements and provides a more seamless and convenient experience for passengers.

For more information on the benefits of modular ticketing solutions, read this blog: The Benefits of Modular Ticketing Solutions for Public Transit 


Justride, a Platform for Everyone.

Masabi powers a complete turnkey fare payment platform designed for smaller and mid-sized agencies. Justride comes pre-integrated with solutions that best fit each agency's needs, such as validators, payment gateways, acquiring banks, and mobile apps. This ensures the system has low upfront costs and is quick and easy to launch.

For larger agencies, Masabi powers a back-office fare payment platform for cities looking to deploy a modular ticketing solution. The back-office plugs and plays with best-in-class solutions from other vendors using our extensive APIs and SDKs. Cities can also take advantage of any existing pre-integrations on the platform.

For more information check out this blog:  Why choose Masabi’s Open Platform to power your modular ticketing solution?


Want to learn more about why agencies select Masabi's Justride platform? Read this page 'Why choose Justride?'



Written by James Gooch

Head of Marketing at Masabi.
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