CHALLENGES IN THE IMPLEMENTATION OF SMART CARD PAYMENT SYSTEMS WITH MULTIPLE PARTNERS: EXAMPLES FROM GERMANY AND THE UNITED STATES

Using smart cards to replace traditional transit tickets holds the promise of reducing cash handling costs, reducing maintenance and security costs, lending a modern image to transit, increasing convenience for riders, and providing new opportunities for innovative fare structures and marketing. This paper looks at the challenges and pitfalls in developing multi agency or public private partnerships to implement smart card systems for transit. The advantages and disadvantages of cooperation among multiple transit operators within a region are considered; parterships between transit operators and providers of other types of goods and services are reviewed; and recent experiences with smart card system development and implementation are presented. The paper concludes with recommendations for transit operators considering implementation of smart card payment systems.