The Future of Fare Collection: 11 Key Trends Transforming Transit Ticketing

Over the last year we’ve seen transit agencies, transport authorities, and operators making big moves to modernize their fare collection systems, embrace innovation, and most importantly improve the rider experience.

At Masabi, we’ve been fortunate to partner with some truly inspiring organizations, and it’s been incredible to see the progress they’ve made, from launching new ticketing solutions to achieving record ridership growth.

Looking ahead over the next year, we’ve been paying close attention to emerging trends in the industry—those driven by rider expectations, agency needs, and broader societal shifts. 

I want to take a moment to share the ticketing and payment trends Masabi believes will define the years ahead and explain why they matter. These trends aren’t just buzzwords—they’re shaping the way we think about public transportation and how we support agencies to build smarter, more connected, and more equitable systems.

11 Key Trends Transforming Transit Payments:

1. Open Payments and Account-Based Ticketing: A Unified Future for Fare Collection
2. Barcode Ticketing to Grow in Popularity
3. Enterprise SaaS Platforms Will Power the Modular Future
4. AI and SaaS, the Perfect Match for Fare Collection
5. Agency-Branded Mobile Apps: A Cornerstone of Modern Transport
6. Mobile Ticketing Expands to Everyday Apps
7. Central Mobility Accounts for Cities
8. Reducing Onboard Cash: A Step Toward Faster Journeys
9. Increasing Support for All Rider Groups Through Discount Programs and Cash Digitization
10. Check-In Be-Out (CI-BO) and XI-XO to Grow in Countries where Honesty-Based Systems are prevalent
11. SaaS Platforms to Help Solve the Bespoke Fare Collection Delivery Problem

Trend 1: Open Payments and Account-Based Ticketing: A Unified Future for Fare Collection

Fare collection is evolving, and Account-Based Ticketing (ABT) has become the default choice for transit agencies and transport authorities looking to modernize their systems. Unlike card-based ticketing systems, where fares are stored directly on a physical card, ABT links payments to a rider’s account stored in the back-office, allowing them to use multiple forms of payment—including contactless bank cards, agency-issued smart cards, and mobile apps—without needing to purchase a ticket in advance.

At the same time, Open Payments, which allow passengers to simply tap their contactless bank card or smartphone to pay for their journey, have grown in popularity. These systems provide a seamless experience for riders, eliminating the need for paper tickets or complex fare structures. However, many agencies have implemented Open Payments separately from their broader fare collection systems, leading to inefficiencies and limiting their full potential.

In the year ahead, we expect to see Open Payments becoming fully integrated into ABT systems, creating a unified, account-based experience for all riders, minimising costs and increasing operational efficiency. This shift will ensure that Open Payments, smart cards, and mobile wallets all function within a single fare system, giving agencies greater flexibility while improving accessibility for all passengers, including unbanked riders who rely on agency-issued smart cards and mobile apps.

For transit agencies, integrating Open Payments within ABT provides significant operational benefits. It reduces reliance on cash, ticket vending machines and fareboxes, lowering collection costs and speeding up boarding times. With all payment types managed within one system, agencies gain better visibility into ridership data, helping them optimize routes and improve service planning.

Additionally, ABT whichever fare media the passenger chooses to use supports fare capping, ensuring riders never pay more than necessary—a critical feature for fare equity. This model prevents lower-income riders from being penalized for not being able to afford monthly passes upfront, instead allowing them to pay as they go without exceeding a set fare limit.

Cities like Knoxville Area Transit, Madison Metro Transit, BCTA, and TARTA launched ABT in 2024, demonstrating its ability to enhance convenience and efficiency. As more agencies move toward fully integrated, account-based fare collection, Open Payments will no longer be a separate feature but an essential part of a seamless, rider-friendly, and cost-efficient transit experience.

Did you know? Masabi’s Justride platform accepts all major fare media and has Family Account functionality making group travel easier. This enables one account holder to manage funds for multiple adults and/or children, simplifying transit for families and groups everywhere.

Also, did you know? Masabi’s Justride platform has Open Payments account linking meaning concessions can be assigned to bank cards (cEMV cards) quickly and easily.

Trend 2: Barcode Ticketing to Grow in Popularity

When we talk about ticketing trends, we can’t overlook the growing role of barcode tickets. In 2024, LA Metro used Masabi's APIs to allow concertgoers to purchase Metro tickets directly on the LA Philharmonic's website and V/Line in Melbourne adopted Masabi barcode systems for their flexibility and ability to integrate with other digital outlets. Barcodes work securely across a range of channels, from mobile apps to email, paper, and digital wallets, making them incredibly versatile.

What’s driving this trend? For one, barcodes are a cost-effective and more secure replacement for costly legacy systems like magnetic stripe tickets. They’re also perfect for event-based travel, where agencies need a quick, easy-to-integrate, and scalable solution to accommodate large crowds. They are also currently the most used fare media across UK Rail. I see barcodes becoming an even bigger part of the ticketing landscape in the coming year, especially as agencies look for ways to modernize without massive infrastructure investments and technical blockers.

Trend 3: Enterprise SaaS Platforms Will Power the Modular Future

As larger transit systems grow more complex, many agencies are moving away from bespoke systems and toward Enterprise SaaS platforms. These platforms offer scalability, flexibility, and regular updates, freeing agencies from the costly and time-consuming process of building and managing custom solutions.

In 2024, we renewed our partnerships with agencies like New York MTA and Denver RTD, both of whom rely on Justride to support large-scale, integrated transit networks. For for year ahead, I predict that more agencies will turn to SaaS open platforms to run their back-office not only for their cost efficiency but also for their ability to support modular solutions and innovation.

Authorities and agencies are moving to procure modular solutions where different parts of the system are procured from different vendors in order to drive innovation and reduce lock-in and we see this trend continuing.

With an Open Platform approach like Masabi’s Justride, agencies can connect with the back-office using existing robust APIs which may already be re-integrated, and rely on a more flexible, robust, and scalable back-office for better management of the solution while reducing the cost of fare collection.

Did you know? At Transport Ticketing Global 2025, Masabi was honored with the Supplier Innovation Award for our Open Platform Integration Suite—a game-changing approach that’s transforming fare payments by reducing vendor lock-in and accelerating innovation through an advanced suite of APIs and SKDs.

Trend 4: Artificial Intelligence (AI) and SaaS - the Perfect Match for Fare Collection

While AI is set to transform transit, it is only as powerful as the system it runs on—and this is why SaaS and AI are a natural combination for fare collection. A Software-as-a-Service (SaaS) model ensures AI capabilities are continuously updated and available across all agencies using the platform, rather than requiring custom builds or agency-specific implementations.

With a SaaS fare collection platform, AI can learn from aggregated data across multiple agencies, improving accuracy and effectiveness in:

1. Passenger demand forecasting
2. Fraud detection and prevention
3. Dynamic fare adjustments
4. Personalized travel recommendations

This collective learning ensures that every agency benefits from AI-driven insights and optimizations, even if they don’t have extensive data on their own network. Instead of agencies having to develop AI solutions independently, SaaS platforms distribute AI innovations instantly—ensuring that every transit system, regardless of size, has access to the latest advancements in automation and intelligence. Because of this powerful combination of AI and SaaS we think the demand for advanced and enterprise-ready SaaS platforms will accelerate over the coming years.

Trend 5: Central Mobility Accounts for Cities

As cities work toward more seamless and connected transportation systems, central mobility accounts are emerging as a key trend. These accounts allow passengers to manage all their travel payments in one place, eliminating the need for multiple tickets or payment methods. Riders can load funds into a single account and use it to ride across modes of transport, creating a fully integrated mobility experience. This approach not only makes travel more convenient but also strengthens public transit as the backbone of urban mobility.

With a central mobility account and an Account-Based Ticketing (ABT) system, agencies can ensure a smooth pay-as-you-go (PAYG) experience, where fares are calculated automatically in real-time and work across public transport and 3rd-party mobility services in a seamless and connected way. This simplifies the payment process, reduces complexity, and ensures passengers always pay the correct fare. Additionally, allowing third-party services to integrate with these accounts expands accessibility, enabling seamless multimodal travel within a single, unified platform.

As more cities adopt this approach in the coming year, central mobility accounts will help modernize public transport, making it more efficient, user-friendly, and adaptable to evolving rider needs.

Did you know?  Masabi’s Mobility Provider Payment API enables third-party mobility services like bikeshare and ride-hailing to integrate seamlessly with transit agencies’ stored value accounts. This allows riders to pay for multimodal journeys effortlessly, making Mobility-as-a-Service (MaaS) a reality.

Trend 6: Reducing Onboard Cash Payments: A Step Toward Faster Journeys

One of the most talked-about challenges in transit today in North America is the ongoing struggle with fareboxes. Agencies everywhere are finding that maintaining fareboxes—especially older, complex models—can be a significant drain on resources and money. They’re expensive to operate, prone to technical issues, and require constant upkeep. With careful planning, a thoughtful strategy, and the right technology, removing fareboxes is possible as Dayton did in 2022 when it transitioned to a cashless onboard system. GDRTA (Dayton) was able to lower the overall cost of fare collection by 50% when they did this (as a percentage of fare revenue).

While the removal of fareboxes is challenging, in the year ahead, we expect to see more agencies taking steps to limit onboard cash payment systems. Instead of costly, full-featured fareboxes we think agencies will increasingly adopt simpler systems—often referred to as “dumb” fareboxes—that accept exact change only. Alternatively, some agencies will keep their existing machines but limit the functionality available to riders. This middle-ground approach dramatically reduces the complexity and cost of maintaining cash systems while still accommodating riders who rely on cash payments onboard.

This shift is driven by several factors. First, reducing cash onboard improves boarding speed and operational efficiency. Cash transactions slow down the boarding process, increasing dwell times and impacting schedule adherence. By limiting onboard cash payments to exact change or phasing out fareboxes altogether, agencies can move riders onto vehicles faster, making transit more reliable and the technology to ensure most payments including cash payments can be made off-board is here to support this shift.

Trend 7: Agency-Branded Mobile Apps: A Cornerstone of Modern Transport

Agency-branded mobile apps will remain essential for public transit authorities and operators. These apps provide a direct connection to riders, allowing them to build trust, loyalty, and a seamless customer experience. Unlike some third-party platforms, agency apps ensure a strong brand connection and control over the app experience, brand experience, and app functionality.

In 2024, Masabi partnered with agencies like Saint John Transit and GLTC to launch agency-branded mobile apps, providing passengers with a seamless way to plan, purchase, and manage travel directly with their transit provider. These apps not only streamline ticketing but also enable agencies to tailor features to their riders' unique needs—whether through fare capping, real-time service alerts, or integrated multimodal options.

As we move into the year ahead, agency-branded apps will continue to evolve, offering new innovations in payments, accessibility, rewards, and rider engagement. While third-party ticketing integrations will remain valuable and continue to be adopted, transit agencies recognize the importance of maintaining a trusted digital space for their passengers, ensuring a frictionless experience that strengthens their role at the heart of urban mobility.

Did you know?  National Express West Midlands (NXWM) and Masabi won a Highly Commended award in the Best Passenger Experience Initiative category at the prestigious Transport Ticketing Global Awards 2025? This recognition highlights the transformative journey NXWM has taken with Masabi to modernize ticketing with their agency-banded app combined with ticketing integrated into leading mobility apps.

Trend 8: Mobile Ticketing Expands to Everyday Apps

One of the most exciting trends we’ve seen in recent years is the integration of transit tickets into apps people already use daily. Think about it—when you’re planning a trip, wouldn’t it be great to buy your transit ticket directly through Google Maps, Citymapper, Transit, or Uber?

In 2024, agencies like COTA and National Express West Midlands made that possible, and the response has been overwhelmingly positive - transit riders love it! It’s even possible for mult-agency trips: in 2024, Masabi and Transit app’s collaboration with RTD Denver won Metro Magazine’s Innovative Solutions award for enabling integrated fare payments on trips that combine Colorado’s regional bus service, Bustang, with local service provided by RTD.

Over the next few years, I think we’ll see this trend continue. Riders expect simplicity, and integrating ticketing into apps they already know and use is a great way to provide it. For agencies, this approach broadens their reach to new audiences—especially those who might not consider themselves regular transit users. By meeting riders where they are, agencies can encourage more people to choose public transportation, boosting ridership and reducing the friction of multimodal travel. An increasing number of agencies are now deploying an agency-branded app and also including their tickets in 3rd-party apps. It’s a real win-win.

Trend 9: Increasing Support for All Rider Groups Through Discount Programs and Cash Digitization

If there’s one thing we’ve learned over the past year, it’s that supporting all rider groups matters more than ever in public transit. Many agencies are stepping up to offer income-based discounts, student programs, and other initiatives designed to make transit more affordable. But supporting riders isn’t just about fares—it’s also about accessibility. That’s why digitizing cash payments has become such a crucial part of the conversation.

Unbanked (or underbanked) riders, who often rely on cash, have traditionally faced barriers to accessing the benefits of modern ticketing systems. Programs like NEORide’s EZfare are changing that by allowing riders to top up their accounts with cash at local retailers. This approach not only makes transit more inclusive but also helps agencies reduce cash handling onboard, speeding up boarding and cutting operational costs.

I expect more agencies to focus on cash digitization and programs that support all rider groups. It’s not just the right thing to do—it’s also a smart way to attract riders who might otherwise feel excluded from public transit systems. These initiatives are about building trust and serving communities, and they’re becoming an essential part of how agencies operate.

Check 10: Check-in Be-Out (CI-BO) and XI-XO to Grow in “Honestly-Based” Countries

In countries where fraud is low, such as Denmark, Switzerland, and Germany, Check-In Be-Out (CI-BO) (and versions of this solution which we refer to as XI-XO to cover the different configurations of this model) systems are becoming increasingly popular.

Denmark’s recent introduction of a national mobile ticketing system follows the success of similar systems in Switzerland and Germany, which rely on passengers voluntarily paying their fares without heavy enforcement.

CI-BO systems usually require passengers to manually check-in via a mobile app. These types of systems rely on honesty and trust, making them suited to regions with strong cultural norms around compliance.

For agencies and operators, these systems offer significant benefits, including reduced staffing and enforcement costs, streamlined operations, and valuable travel data where they can be deployed. We anticipate CI-BO and XI-XO gaining traction within certain countries and regions where the need for fare enforcement is low.

Trend 11: SaaS Platforms to Help Solve the Bespoke Fare Collection Delivery Problem

For years, public transport agencies and authorities have struggled with the slow, costly, and often uncertain process of implementing new fare collection systems. Bespoke, custom-built solutions frequently take years—sometimes even decades—to go live and are prone to delays, cost overruns, or outright cancellation. Agencies and authorities are left with outdated, inflexible systems that fail to meet modern passenger expectations.

This problem has driven a major shift toward Software-as-a-Service (SaaS) fare collection platforms. Unlike traditional custom-built systems, SaaS platforms are pre-configured and proven, enabling agencies to implement best-in-class technology without years of development, extensive risk, or unpredictable costs. By selecting a mature, scalable platform already processing billions in fare revenue, agencies can have confidence in delivery timelines and avoid the pitfalls of long delivery cycles.

At Masabi, we’ve had to rapidly scale and optimize our delivery and migration capabilities to meet the growing demand for SaaS-based fare collection. Agencies are increasingly choosing Justride over bespoke systems, recognizing that they can deploy faster, more affordably, and with far less risk. In 2024 alone, we successfully delivered 43 major projects—which we believe is the most in the industry—all running concurrently, something that would be nearly impossible with a traditional build-from-scratch approach.

Looking ahead, the demand for SaaS in fare collection continues to accelerate, with even more large-scale deployments planned in the coming year. By choosing a SaaS-based, modular solution, agencies can finally escape the cycle of slow, high-risk procurements and instead roll out systems that are scalable, continuously evolving, and ready to meet the needs of modern transit.

These trends aren’t just predictions—they’re the result of conversations, partnerships, and real-world data. As we look to the future, I’m excited to see how transit agencies will continue to innovate and evolve. At Masabi, we’re here to help, offering solutions that make transit more accessible, equitable, and rider-friendly.

If you think we have missed a trend please get in contact and let me know.

Interested in a demo of the most advanced SaaS Account-Based Ticketing platform, which supports all rider groups, modes, and fare media? Request a demo here. 

Here’s to another year of progress and transformation in the year ahead!