Open vs. Closed Loop Ticketing in Transit

The public transportation ticketing industry is undergoing significant change. In the past, buying a ticket with cash was the initial step in using a public transport system, which has now changed to utilising a preloaded smart card to gain access to the public transport system with the Closed Loop Ticketing system. However, this system requires, for example, that you bring three prepaid smart cards, one for each transport company, if you must travel via a metro and then two buses of different companies.

The Open Loop concept eliminates preloaded smart cards and quite revolutionarily also eliminates the ticket itself in public transport. The open-loop system provides a new level of passenger convenience, where you can simply use your regular credit or debit card to make purchases at stores to travel on the go on the buses and the metro. And that too, not only in your area or city but all around the country. You can also use your mobile phone instead of a bank payment card if you do not have one.

This article understands the closed-loop and open-loop ticketing systems in public transport., describing the operation of the open loop ticketing system, how it serves passengers without bank…