Open or closed: How transit agencies can win back riders in a post-COVID world

Open or closed: How transit agencies can win back riders in a post-COVID world
Agencies must balance innovation with equity to ensure transit remains a service for all.

Nicole T.W. Brown
Aug. 19, 2025
6 min read




For those in the transit industry, it’s easy to get lost in the jargon. Terms like card-based, account-based, open-loop and closed-loop are frequently tossed around and, even more frequently, redefined or adapted faster than a game of telephone. It’s enough to make anyone loopy, and it reminds us of how complex the ticketing landscape has become, especially as transit agencies work to win back riders in a post-pandemic world.

Agencies have yet to reach pre-lockdown ridership levels. They are also under pressure to attract a new tech-savvy generation of travelers, all while grappling with the looming threat of reduced government funding. Riders, however, don’t care about the jargon or the backend complexities; they want their transit experience to be modern, seamless, easy and reliable. That’s why the choice between an open-loop or closed-loop ticketing system is so critical for getting riders back on board.

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Open-loop vs closed-loop ticketing

At its core, closed-loop ticketing is like purchasing a Target gift card, where you buy a transit smartcard, load it with value or a fare product and can use it within that agency’s network. Smartcards have long been used in place of cash or paper tickets, helping agencies reduce the time and costs of cash handling and boarding. However, having a fare card before traveling can be cumbersome for some riders, especially those without easy access to top-up kiosks or locations.

Open-loop ticketing allows travelers to pay with their credit card, debit card or mobile wallet (like Apple Pay or Google Pay). Because these payment methods can be used outside the transit network and involve third-party entities like banks, the loop is open. Transport for London (TfL) first launched an open payment system in 2012, and today, open-loop tokens account for about 70 percent of all TfL pay-as-you-go bus journeys. It’s a true gift of love for riders, especially occasional travelers and tourists, who can tap and go using what they already have in their pocket with no need to pre-purchase an agency transit card. ............................(more)

https://www.masstransitmag.com/technology/fare-collection/article/55306137/open-or-closed-how-transit-agencies-can-win-back-riders-in-a-post-covid-world