# Digital ticketing: the challenges and opportunities facing PTOs and PTAs.
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-02
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Revolutionising Urban Mobility with Contactless Ticketing Solutions
Meta Description: Discover how smart mobility solutions are shaping the future of urban transportation with contactless ticketing, NFC technology, and seamless integrated
URL: https://financedigest.com/digital-ticketing-the-challenges-and-opportunities-facing-ptos-and-ptashtml

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_By_ **_Arnaud Depaigne,_** _Product Manager, Smart mobility at Fime._

Transport ticketing has rapidly evolved in the digital age. As recently as the 1990s, closed loop systems based around paper tickets or tokens were the norm. This resulted in a [poor user experience](https://www.financedigest.com/poor-user-experience-plaguing-wealth-management-firms-warns-radical-company.html "Poor user experience plaguing wealth management firms, warns Radical Company"). Lines to purchase tickets were often long, and turnstile throughput was inefficient. Today, passengers can use a smartcard or even their phone as their ticket, utilizing contactless and Near Field Communication (NFC) functionality to tap-and-go.

This [proliferation of digital](https://www.financedigest.com/the-hpmc-capsules-market-to-proliferate-with-digitized-upswing.html "The HPMC Capsules Market to proliferate with digitized upswing") ticketing has only been further accelerated over the last 18 months. The pandemic has presented Public Transport Operators (PTOs) and Public Transport Authorities (PTAs) with an urgent [need for hygienic contactless](https://www.financedigest.com/hospitality-needs-to-join-the-contactless-revolution.html "Hospitality needs to join the contactless revolution ") solutions. As passenger numbers slowly begin to return, the ecosystem is [presented with a unique opportunity](https://www.financedigest.com/the-rise-of-finfluencers-presents-unique-opportunities-but-brands-must-proceed-with-caution.html "The rise of “Finfluencers” presents unique opportunities but brands must proceed with caution") to advance urban mobility and move towards a Mobility-as-a-Service (MaaS) model. However, with this also comes a series of challenges.

**Reacting to changing user behavior**

Today’s consumer [world is digital](https://www.financedigest.com/fraud-in-a-mobile-digital-world.html "FRAUD IN A MOBILE DIGITAL WORLD"), global and on demand. Passengers want seamless integrated solutions that allow them to [plan and pay](https://www.financedigest.com/uk-leadership-favourite-truss-u-turns-on-pay-plan-in-first-big-misstep.html "UK leadership favourite Truss U-turns on pay plan in first big misstep") for their transit using only the device in their pocket. Furthermore, the urban mobility ecosystem is [seeing a rising demand](https://www.financedigest.com/inpost-sees-stronger-2022-but-warns-of-slowing-demand.html "InPost sees stronger 2022 but warns of slowing demand") for interoperable MaaS solutions that provide end-to-end transportation on a single ticket. [Mobile ticketing must](https://www.financedigest.com/managing-mobility-in-the-enterprise-must-have-consideration.html "Managing mobility in the enterprise must have consideration") deliver on these expectations as well as being user friendly, reliable and secure.

In part, this is being achieved by changing the focal point of urban mobility from the station to the passenger themselves. This consumer-centric approach allows PTOs and PTAs to reconfigure their sales and distribution channels to meet the growing [demand for digital](https://www.financedigest.com/veraviews-welcomes-hoopla-digital-as-a-demand-partner.html "VeraViews Welcomes Hoopla Digital as a Demand Partner") solutions.

Mobility providers can achieve this by integrating Host Card Emulation (HCE) and NFC [technologies into their ticketing solutions](https://www.financedigest.com/peppermint-technology-revamps-communications-with-via-voice-solution.html "PEPPERMINT TECHNOLOGY REVAMPS COMMUNICATIONS WITH VIA VOICE SOLUTION"). More [technologically literate passengers will already be familiar with digital](https://www.financedigest.com/you-cant-get-faster-than-that-spring-statement-update-delivered-digitally-as-it-happens-with-app-driven-technology.html "‘You Can’t Get Faster Than That’ – Spring Statement Update Delivered Digitally As It Happens with App-driven technology") wallets and contactless payments. This mitigates concerns about achieving widespread user adoption and [means that any digital](https://www.financedigest.com/making-sure-that-finservs-digital-transformation-doesnt-mean-digital-exclusion.html "Making sure that FinServ’s digital transformation doesn’t mean digital exclusion") urban mobility solution could be rolled out at speed. Another benefit to this is that it significantly [cuts costs](https://www.financedigest.com/uks-sunak-under-fire-over-cost-of-living-defends-his-tax-cut-plans.html "UK’s Sunak, under fire over cost of living, defends his tax cut plans") for providers. As passengers no longer require mode-specific [travel cards](https://www.financedigest.com/virtual-cards-in-the-travel-industry.html "Virtual cards in the travel industry"), everything is instead accessible on one device. Providers can therefore cut their expenditure on manufacturing the cards themselves. They can also scale [back the on-the-ground resources](https://www.financedigest.com/norway-sovereign-fund-backs-teck-resources-in-battle-with-glencore.html "Norway sovereign fund backs Teck Resources in battle with Glencore") allocated to support issuance.

**Context is key**

When rolling out a solution, providers must be mindful that each individual passenger has different needs. Cities have unique transit networks of varying sizes that require different approaches. Furthermore, any solution must be accessible to all demographics, from [digital natives to those who are less technologically](https://www.financedigest.com/digital-technology-and-startups-during-a-recession-how-to-stay-afloat.html "Digital Technology and Startups During a Recession — How to Stay Afloat") adept. They must also remain aware that not every passenger will have a [bank account](https://www.financedigest.com/how-to-compare-business-bank-accounts.html "How to compare business bank accounts"). Solutions must not exclude people. They must [offer customers](https://www.financedigest.com/improving-customer-experience-through-broadening-your-mobile-offering.html "Improving customer experience through broadening your mobile offering") a range of options to make their payment.

Account-based ticketing (ABT) manages the [consumer’s funds in the back-office account](https://www.financedigest.com/what-successful-accounting-looks-like-in-the-age-of-the-consumer.html "What successful accounting looks like in the age of the consumer"), making the payment automatically. This gives users flexibility to [move between several fare media to make payments depending on what is most convenient at the time](https://www.financedigest.com/move-over-tina-its-time-for-tara.html "Move over TINA, it’s time for TARA") – be it by smartcard, mobile device or wearable. To this end, ABT solutions simplify maintenance logistics, improve [security while also ultimately reducing the cost](https://www.financedigest.com/durham-county-council-reduces-data-log-analysis-costs-by-50-with-real-time-analysis-and-security-tool.html "Durham County Council reduces data log analysis costs by 50% with real-time analysis and security tool") of urban mobility.

By moving from a stored value card system to an account-based approach, PTOs and PTAs can achieve “the holy grail of ABT” as it has been described by Visa. This system [opens the door for future](https://www.financedigest.com/the-future-of-open-finance.html "The Future of Open Finance") adjacent services by achieving interoperability between different fare media.

**The importance of open standards**

Open standards can offer a pathway to truly realizing seamless transport ticketing. With open standards, PTOs and PTAs remain in control of their ticketing network as the [supply chain remains open to multiple solution](https://www.financedigest.com/ges-investors-seek-solutions-to-renewable-energy-supply-chain-challenges.html "GE’s investors seek solutions to renewable energy, supply chain challenges") providers. Providers can therefore avoid vendor lock-in and the issues that can present. Furthermore, an [open standards approach means](https://www.financedigest.com/open-banking-what-it-means-for-you-and-the-industry.html "Open banking: What it means for you and the industry") that PTOs and PTAs can evolve organically with the technology as it is rolled out. This allows them to remain agile and [prepared for future challenges](https://www.financedigest.com/german-exporters-prepare-for-a-challenging-2023.html "German exporters prepare for a challenging 2023") and developments.

**The need for expertise**

PTOs and PTAs will need to [continue evolving with future technological](https://www.financedigest.com/how-video-technology-continues-to-boom-in-the-education-sector.html "How video technology continues to boom in the education sector") developments. By [remaining aware of the challenges that may lie ahead](https://www.financedigest.com/swiss-watchmakers-remain-upbeat-ahead-of-geneva-gathering.html "Swiss watchmakers remain upbeat ahead of Geneva gathering"), they can put themselves in the best possible position to capitalize on opportunities. Infrastructure migration does not necessarily require huge investments, and with the right support, the transition can be made as smooth as possible.

Fime’s global expertise can help demystify and simplify ABT deployment. With over 20+ years of [experience ensuring the efficient and successful implementation of card and mobile transaction services](https://www.financedigest.com/lockdown-unlocked-testimonials-of-hospitality-businesses-reinventing-the-service-experience.html "Lockdown Unlocked:  Testimonials of hospitality businesses reinventing the service experience"). [Fime is well-equipped and experienced in supporting the transport market in delivering the next](https://www.financedigest.com/fime-launches-the-next-generationof-its-emv-level-3-test-platform.html "FIME launches the next generationof its EMV Level 3 test platform") generation of transit ticketing solutions in a complex market.


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