Resources — Comparison

Open loop vs closed loop payments

Open loop uses bank cards and digital wallets. Closed loop uses transit-specific cards. Most modern networks support both — here's how to think about the trade-offs.

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Open loop vs closed loop

Open loop

Riders pay using a bank-issued contactless card or digital wallet (Apple Pay, Google Pay) — the same card they use everywhere else. No separate transit card, account, or app required. Acceptance requires EMV-certified validators.

  • Zero onboarding friction
  • Works for tourists and infrequent riders
  • Supports fare capping in ABT deployments

Closed loop

Riders use a transit-specific card (Oyster, ORCA, Clipper) issued by the agency or operator. Value is stored on the card or in a transit-managed account. Accepted only within that agency's system.

  • Requires separate card issuance
  • Walled garden — not interoperable
  • Higher infrastructure and support cost

Most agencies deploying Justride run open and closed loop side by side during transition — preserving existing smart card users while opening up to bank card and mobile wallet acceptance.