Suggested Citation:
Pike, Susan, Juan Matute, Jean Daniel Saphores, Monisha Reginald (2025)

Brief: Capacity Building is Key for Accelerating Open-loop Payments Adoption Among Transit Agencies

. Institute of Transportation Studies, University of California, Davis, Brief UCD-ITS-RR-25-86

Abstract:

Open-loop payments systems allow riders to pay fares using general-purpose payment methods like credit cards, debit cards, or mobile wallets (Apple Pay, Google Pay), rather than being limited to a single transit agency’s own payment system. Broad adoption of open-loop payments offers major benefits for public transit, including lower costs, greater convenience for riders, and improved operational efficiency.

The California Integrated Travel Project (Cal-ITP) has helped pave the way for transit agencies interested in this technology by providing resources, guidance, and hands-on support. Cal-ITP works directly with transit agencies to address known challenges and identify solutions to emerging barriers. Understanding how agencies decide whether to adopt open-loop and other technologies is key to ensuring the effectiveness of programs like Cal-ITP. To explore this, we surveyed transit agencies in California to identify the factors that influence adoption of open-loop payments.