AFC (Automated Fare Collection) Trends for 2025: On the Edge of Rethinking

As we approach 2025, the Automated Fare Collection (AFC) landscape continues to evolve. Industry leaders and transit agencies remain focused on popular trends like open-loop payments, account-based ticketing (ABT), and fare capping.

However, the voices questioning these technologies are becoming louder and more persistent, challenging their touted benefits.

Here, I try to outline the areas I believe will face deeper scrutiny in the coming year:

1. Reassessing Open-Loop Payments

Reality: Open-loop systems, often marketed as “open,” fall short of delivering true openness. Instead, they frequently lock transit agencies into specific vendors or payment networks. Costs are often higher than anticipated, and operational efficiency doesn’t always meet expectations. Trend: Agencies will explore hybrid models, combining the resilience and cost benefits of so-called “closed-loop” systems with selective adoption of open-loop capabilities where they make sense. This pragmatic approach ensures both flexibility and control.

2. Mobility-as-a-Service (MaaS) Integration: Proceeding with Caution

Reality: While MaaS platforms promise seamless multimodal travel, the reality is that technical complexity, proprietary systems, and conflicting stakeholder priorities often hinder progress. These barriers make true interoperability elusive. Trend: The focus will shift toward standardizing interoperability and aligning stakeholders. This shift will move the industry beyond superficial promises of “frictionless” travel and toward practical, scalable solutions.

3. Account-Based Ticketing (ABT): Accountability Over Hype

Reality: ABT is often seen as a transformative solution, but it introduces significant operational challenges. Increased complexity, rising costs, and potential revenue leakage are common concerns. Trend: Transit agencies will prioritize ABT in controlled environments, coupling implementation with robust safeguards to mitigate financial and operational risks. The focus will be on balancing innovation with practical sustainability.

4. Fare Capping Reevaluated

Reality: Fare capping is frequently championed as a win for passengers, but it often results in revenue losses for operators and disproportionately benefits infrequent riders over regular commuters. Trend: Agencies will begin exploring alternative models that ensure equity for frequent riders while maintaining financial sustainability. Transparent pricing structures and targeted incentives may emerge as key solutions.

Looking Ahead

The AFC industry is at a pivotal moment. While innovation and technology remain critical, so too does a measured and evidence-based approach to implementation.

If you have a different perspective or ideas, feel free to share your thoughts. Only meaningful dialogue can lead to real improvements and practical solutions for the challenges we face.