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We’ve come a long way from tokens. Imagine having to fish a small metal object, but not the wrong small metal object, out of your pocket, insert it into a special box, and wait for the operator to acknowledge it. So delightfully analog!
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Transit agencies have spent decades investing in ways to make paying for transit faster, cheaper, and more reliable. Tokens gave way to paper tickets, which gave way to smart cards. If you’ve ever bought a card to store cash value that can only be used on one transit system, you’ve used a smart card. Smart cards are also called “closed loop” systems, meaning that once a dollar bill is inserted into the system, it can only be used within the closed system of the transit agency.
Now in the United States, smart cards are giving way to “open loop” ones. The global banking system is considered one big “open” loop, and it includes every bank, every ATM, and every card already in your wallet or on your phone. You already pay for coffee, dumplings, and rent within this open loop system. Open loop has been the norm in Europe and parts of Asia for several years, and now, several US transit agencies allow you to pay to ride the bus with open loop, too.
Open loop systems are much cheaper to operate for the transit agency. Larger agencies can easily save millions of dollars a year by no longer having to provision smart cards or tickets.
Open loop got a big boost during the pandemic and the era of social distancing. As opposed to buying a smart card, swiping it, and waiting for the machine to validate it, tapping a bank card reduces the amount of time riders and operators have to spend in close proximity to each other.
What about riders? Nearly all riders can save time and money by paying with an open loop bank card. Open loop fare payment systems work especially well for tourists and people who don’t ride transit frequently. These riders have the most to gain from skipping the whole “buy a separate card” process and simply paying with their existing bank card.
Commuters who receive transit benefits on an open loop commuter debit card also benefit. Rather than having to constantly transfer funds between a commuter debit card and a smart card, these riders can simply tap to pay with their commuter debit card on the bus or train and ride. Learn more about how this works with the Jawnt Pass.
It’s not all roses and on-time arrivals though, of course.
As of December 2024, the following transit agencies accept transit fares through an open loop fare payment system:
Coming soon:
Did we miss an agency? Drop us a line and let us know at openloop@jawntpass.com.
