Skip to main content

Integrated fare management for transportation

The challenge

Change commuters' perception of public transportation

In cities around the world, public transportation options are available, but often underutilized. Commuters complain that using public transportation is inconvenient, especially if they have to interact with multiple payment systems associated with parking garages, subways, buses and the like during their commute. And they worry about the cost. The integrated fare management solution for transportation from IBM can help transportation system operators build a more intelligent fare collection system that attracts more riders with conveniences and savings, while cutting operating costs.

 


The solution

Provide fast, convenient access to transportation

Our solution delivers an instrumented approach to fare management by pulling information about customer payments and usage from multiple transportation system operators, creating an interconnected system that allows commuters to use a single smart card to gain access to and pay for all of their transportation needs. The cards can even be extended to other areas, such as micro payment, toll roads, building access control or attendance. This translates to improved service by reducing boarding times, creating shorter lines for ticket purchases and eliminating the need for correct change. The transactions are fast, secure and convenient. The cards are customizable and reusable.

The solution also provides operators with the intelligence and insight they need to visualize trends in usage, enabling them to optimize the use of the assets and networks. Integrated fare management improves service by helping to make the system easier to use. It provides a tool to implement creative and flexible fare policies, encouraging usage through discounts and other promotions. And with tamper-proof storage of transaction activities, it can lower security concerns for operators by reducing the opportunities for fare evasion and fraud loss. In addition, card readers have no moving parts, making them easier and less expensive to maintain.

 


The benefits

A win-win situation

Integrated fare management helps both operators and commuters. Transportation systems operators can benefit from:

  • Reduced handling of cash and simplified cash management.
  • More efficient passenger transfer across different modes of transportation and operators.
  • Revenue sharing and apportionment based on actual use.
  • Tamper-proof storage of transaction activities.
  • Less fare evasion and fraud.
  • Reliable and proven technology in volume production.
  • The ability to implement creative and flexible fare policies.
  • A source of extra revenue generation.
  • A wealth of usage data that can be used to better plan routes and schedules.

In addition, the solution can help improve customer satisfaction by giving commuters:

  • Reduced boarding times and less time spent waiting for tickets.
  • Minimized need for cash or correct change.
  • Fast, secure and convenient transactions.
  • Customized service that affords the ability to re-charge or cancel the card.
  • Access to their transportation usage transactions.

 


The specifics

 

The implementation of integrated fare management can be quite complicated, requiring the orchestration of a variety of hardware and software components. The coordination among numerous stakeholders, all while meeting service customer service levels, adds additional challenges. IBM provides a strong consulting element for all of the hardware, software and services components, along with an application solution for the back office that provides ticket and smart card management, central reconciliation and settlement services to all public transport providers.