Concession Fare Payments with Credit and Debit Cards: A New Industry Standard on the Horizon?

In recent years, the transportation sector has witnessed a significant technological shift that promises to reshape how we think about public transit and fare payments. The integration of concession fares with open-loop EMV card systems has the potential to establish a new industry standard that could revolutionize fare collection worldwide.

The Old Way: Closed-Loop Systems

Historically, public transport systems relied on closed-loop ticketing technologies. In such systems, passengers, especially those eligible for concession fares — students, seniors, and people with disabilities — were required to obtain special transportation cards. These cards had to be purchased, topped-up with funds, and maintained separately from regular bank cards. The need for a dedicated infrastructure to support these processes often resulted in added costs for both users and municipalities.

Enter Open-Loop EMV Systems

However, as cities like Gaziantep have shown, the landscape is changing. The “every card is GaziantepCard” project, developed by Kentkart, marks a significant leap forward by enabling concessionary fares through open-loop EMV cards. This approach allows passengers to use their existing debit or credit cards to access concession fares, eliminating the need for a separate transportation card. The underlying technology, powered by Account-Based Ticketing (ABT), ensures that tariff calculations and payment processing are managed seamlessly online.

Benefits for All

The benefits of this innovation are manifold. For passengers, it means greater convenience—no more trips to card centers, no additional costs for concession cards, and no dependence on top-up infrastructure. Passengers can use their debit or credit cards directly, enjoying the same concessionary rates they would with a traditional transport card.

Municipalities, on the other hand, stand to gain significantly as well. The costs associated with producing and distributing transport cards are drastically reduced. Additionally, the shift towards existing payment cards minimizes the environmental impact by reducing plastic waste and alleviating the burden on global chip supply chains. In Gaziantep alone, smart card production decreased by 5,000 units within the first three months of the project.

A New Standard?

The question now is whether this approach will become the new industry standard. The evidence suggests that it could. The blend of convenience, cost savings, and environmental benefits makes open-loop EMV systems an attractive proposition for cities worldwide. As more municipalities explore this technology, we may very well be on the cusp of a new era in public transportation—a future where every card is not just a bank card, but also a ticket to ride.

This emerging trend towards integrating concessionary fares with open-loop EMV cards could redefine how public transport systems operate, making them more efficient, sustainable, and user-friendly. As cities like Gaziantep lead the way, the question remains: will others follow suit, and could this be the new global standard for fare collection? Only time will tell, but the future certainly looks promising.