{"id":16648,"date":"2016-08-17T09:00:00","date_gmt":"2016-08-17T08:00:00","guid":{"rendered":"https:\/\/masabidev.wpengine.com\/news\/what-is-open-loop-ticketing\/"},"modified":"2016-08-17T09:00:00","modified_gmt":"2016-08-17T08:00:00","slug":"what-is-open-loop-ticketing","status":"publish","type":"post","link":"https:\/\/www.masabi.com\/es\/news\/what-is-open-loop-ticketing\/","title":{"rendered":"What is \u2018Open Loop\u2019 ticketing?"},"content":{"rendered":"
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The term \u2018Open Loop\u2019 references the fact that the ticketing system leverages existing open \u2018tokens\u2019 and processes that are not proprietary to the transport network in question. These tokens also work outside of the transport system, hence ‘Open’. The main ‘Open Loop’ tokens are a cEMV contactless bank card or cEMV payments made through a mobile device.<\/p>\n

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For an \u2018Open Loop\u2019 system to work there needs to be a token available within the transport network\u2019s ridership which is ubiquitous enough that a \u2018token\u2019 does not need to be issued by the transport provider (or media issuance is kept to an absolute minimum).<\/p>\n

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Two devices well suited to be used as \u2018tokens\u2019 in most Western cities today are smartphones and contactless credit cards (contactless EMV<\/a>).<\/p>\n

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The level of ubiquity for smartphones is generally very high, being around 65-95% in Europe and the US. EMV contactless is more sporadic than the smartphone, in some cases being very high and others not yet in-market, but is growing in most regions around the globe. The smartphone has many different ways of communicating a token – from NFC<\/a> to Bluetooth Low Energy<\/a> and, of course, a screen which can be used to display a barcode.<\/p>\n

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The \u2018tokens\u2019 in a contactless EMV system allow the secure payment infrastructure put in place by the payment networks (e.g. MasterCard<\/a>, Visa<\/a>, American Express<\/a>, Discover etc) to be used to uniquely identify individual customers.<\/p>\n

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Open Loop tokens are typically paired with an Account-Based back-office system to calculate the correct fare for a rider based on the travel patterns captured by the token\u2019s use within the transit network.<\/p>\n

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Moving beyond contactless EMV and smartphone devices, an Account Based Ticketing system can also support the ability for passengers to use other \u2018tokens\u2019 to travel such as a library, student or national identity card, mobile barcode or smartcard.<\/p>\n

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Open Loop is the term used for describing open tokens that work outside of a transit system, such as contactless bank cards and mobile payments, to enable people to travel on public transport. This simplifies the experience for the passenger, as there is no longer a need to queue for a ticket, and reduces the cost of fare collection for the transit provider as it no longer needs to issue and manage the fare media.<\/p>\n

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Further reading:<\/strong><\/p>\n