ELECTRONIC PAYMENT SYSTEMS IN PUBLIC TRANSIT

Many public transit operators in the United States are planning integrated, automatic fare collection systems (AFC). Like automated toll collection systems, AFC Systems in public transit are part of the family of electronic payment systems envisioned in the Intelligent Transportation System architecture. An integrated AFC system typically uses advanced technology (e.g. magnetic stripe or smart cards) to collect fare payments electronically on two or more transit related modes (e.g. bus, rail, parking). Integrated AFC systems can result in many types of benefits for passengers and transit operators, including increases in revenue, reductions in operating expenses, and enhancements in security, equity, and quality of transit service. The objectives of this paper are threefold: 1) to briefly review several initiatives underway in the U.S. to design and implement integrated, automatic fare collection systems, 2) to examine the motivational factors and projected benefits which have provided the impetus for these AFC initiatives; and 3) to identify and discuss the institutional and organizational issues associated with the implementation of integrated payment systems in the U.S. and the strategies employed to resolve these issues.