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The automated fare collection system refers to a contactless, end-to-end solution for collecting fare payments and replacing traditional ticketing systems with automated ticketing. Automatic gate machines, ticket vending machines, recharging terminals, and ticket checking machines are all part of the system. This technology enhances fare collection efficiency, increases overall transaction rate, and saves a significant amount of time, reducing line time and increasing efficiency.
The global automated fare collection system market is expected to double in value by 2027.
Factors that impact the growth of the automated fare collection system market
01. Contactless open payment
Customers benefit from contactless open payment since their debit/ credit cards work as a ticket office, making for hassle-free fare payment. Transit agencies can enable commuters to tap contactless open payment methods for point-of-entry payments by adopting an automated fare collection system based on industry open standards. As a result, travellers do not need to carry cash or stand in long lines to purchase tickets. Contactless open payment will boost market expansion in the near future due to lower operational costs and improved customer service.
02. Increasing demand for smartphones
Mobile phones are now an important instrument element for online ticketing, assisting the automated fare collection system industry’s advancement. With numerous mobile apps for bus and train transportation, smartphones make purchasing tickets easier, fuelling industry expansion. This strategy simplifies cash handling while also improving boarding.
03. Enhanced efficiency
The automated fare collection system removes cash transactions and issues regarding language barriers between passengers and drivers, facilitating simple smartcard payments. With each card-swipe, important data is captured and stored in a database, leading to more efficient payment processing, speedier transactions, and shorter processing times. Automated fare collection systems enable quick service as well as self-service choices, resulting in minimal or no wait time for customers, reducing overall operational time and increasing overall process efficiency. Furthermore, speedier transaction confirmation allows employees to swiftly issue fare tokens and tickets.
04. Low fraud rates
In comparison to paper tickets, smartcard technology provides a high level of security and data storage. Only those clients with a sufficient fund balance in their smart cards or who have collected the token by making a payment are allowed access to automated fare collection systems. The use of this technology has a tendency to lower the number of frauds and counterfeiting. Automated fare collection allows transit operators to better control their finances and track media sales, transfers, and cash transactions, minimizing fraud and improving the automated fare collection system market.
In conclusion,
The public mobility sector has been hit hard by the COVID-19 issue, with individuals being encouraged to stay home. Following the post-lockdown situation public transportation is progressively reopening. Due to rising public health concerns and the widespread adoption of digital technologies, contactless and automated payment systems are expected to gain traction in the future decade.
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