Fare Payment Technologies > Fare Integration Systems       Printer-friendly version

What Is It?

• Fare integration systems are fare payment technologies that attempt to simplify travel by integrating the fare collection and payment systems of different transit modes and operators.
  
  
• Fare integration systems utilize electronic communication, data processing and data storage technologies to automate fare storage, collection and payment across transit agencies and modes.
  
  
• There are three types of integration that are currently emphasized in fare integration systems. One type involves linking the fare payment systems among different modes of transportation that are managed by a single transit operator. A second type links together, different transit operators to the same system of fare payment. A third type of integration links transit fare payment systems with consumer financial systems such as banks and credit unions.
  
  
• The goal of fare integration systems is to increase convenience for the passenger and operational effectiveness for the operators.
  
  
• Examples of electronic fare media are transit passes, stored value fare cards, smart cards with microprocessors for transportation services only or for a variety of services.

Key Results

Smart cards with microprocessors are the most versatile and promising advanced fare integration system as they have the ability to process computational routines. They accommodate more sophisticated fare pricing systems, allow automation of accounting processes and offer greater security and privacy (particularly important for carrying cash content securely and for identification purposes). Smart cards are also likely to become pervasive in all kinds of transport applications. In addition to being a means of payment, it is (as ETC has proved) an effective means of identification. Innovative uses include anti-theft car devices, driving licenses, and car registration permits.

Benefits

• User benefits: convenience, time savings, greater fairness of fares when more accurate or sophisticated fare pricing systems are adopted, and safety.
  
• Transit agency benefits: more sophisticated fare pricing systems, elimination or reduction of cash handling and transfers, enhanced security, automating of accounting processes, enhanced operational effectiveness.

Costs

• Installation and maintenance advanced fare technologies.

Implementation Challenges

• Technological components are already in place.
• Standards: standards for a common fare media and their data transmission devices must be adopted to simplify integration and to encourage other participants to integrate with the established system in the future.
• The main challenge is institutional: namely establishing multi-agency partnerships or, for a single agency, implementing the integration system across modes.
• For fare integration systems that are also used as payment for other transportation services (such as parking, tolls etc.) the challenge is to integrate all these features and services into a single card and to ensure cross-operability of systems.

Where is it implemented?

• Magnetic strip cards are widely implemented throughout Asia, Europe and North America
  
• Smart-cards with processors are being more widely deployed in Europe (for example in London by 2002, in test phase in Paris, Berlin, Madrid, Rome) but are increasingly being deployed in Asia (Hong Kong - the largest smart card system in the world -, Shanghai, Seoul, Singapore and a few cities in Japan and Australia) and North America (San Francisco TransLink Demonstration Project, Washington D.C., there are plans for Chicago and Seattle).

Author: Dimitri Loukakos