What are Open loop Payments?
Open-loop payments are a convenient method of paying for transport and other services. Open-loop payments are any payment method which can be used to make payments without having to be part of the system itself. Open-loop technology saves users’ time. Open-loop payment systems allow riders to pay with the payment cards already present in their physical and digital wallets.
Types of Open Loop Payment Modes in Railways like Mobile Validator, Mobile Application, Turnstiles, QR Codes.
There are various types of open loop payment modes in railways that allow passengers to pay for their journey such as mobile validator, mobile application, turnstiles, QR codes. Open-loop payment is often associated with account-based ticketing and contactless payments as well.
Advantages of Open Loop Payments over Traditional Modes of Payment in Railway Transit.
The advantages of open payments for riders include convenience, lighter wallets with fewer cards, and no more checking a dedicated transit balance before boarding. Opting to use an open-payment system means you don’t need to dig through your pocket for coins or tickets. Commuters who can use their own cards in an open-loop system never have to queue to buy or recharge their method of payment. The advantage for transit authorities is that they don’t have to support their own expensive infrastructure in order to process and settle fare payments for themselves.
Smart Ticketing Defining a Smart City
- Customer perceptions shift as the environment changes due to continuous
- technological advancements. Given the widespread availability of mobile devices like
- tablets and smartphones, loaded with applications that provide high levels of
- convenience in nearly every aspect of life, this is particularly evident in the way
- industries are increasingly transitioning to the online platform.
- In recent years, this transformation has begun to make its mark in the railway transport
- sector, especially in urban areas where high flexibility, convenience,
- and the removal of ticket purchasing lines are needed. Customers want
- “frictionless travel,” in other words.
- Given this change in perspective, it is expected that paper tickets will soon be replaced, as
- innovative technologies begin to evolve, making smart ticketing a growing phenomenon in
- transit systems in major cities around the world to achieve the SMART CITY status.
Recent developments indicate that digital wallets will soon dominate traditional cash, with many countries making deliberate efforts to reduce their reliance on physical cash.
Sweden is a good example of this, since it is regarded as a forerunner in the cashless society, with almost 900 of its 1,600 bank branches no longer accepting cash deposits.
A cashless society is an economic state or ideology in which all financial transactions are carried out through the exchange of digital information rather than physical currency such as banknotes and coins.