The future of transit: How contactless and open-loop ticketing are reshaping mass mobility

As convenience, speed, and security become top priorities for passengers, the global public transport industry is undergoing a quiet but significant transformation. The newly released State of Mass Transit Ticketing Hardware Report 2025—a joint study by HID and Global Mass Transit—reveals that nearly half of transit agencies plan to upgrade or explore new fare collection systems by 2030, with most aiming to do so within the next 12 months.

A key driver of this shift is the adoption of open-loop EMV contactless systems, allowing riders to tap in with their bank cards. The report shows 43% of agencies plan to implement these within five years, and 88% of them expect to act within the next two.

While North America still relies heavily on traditional fareboxes, cash, and closed-loop cards—used by 87% of agencies—change is on the horizon. Outdated magnetic stripe systems are being phased out, and agencies are prioritizing ticketing-agnostic hardware, open-source platforms, and fast, reliable readers.

Several global trends emerged from the 100+ agencies surveyed:

— Mobile ticketing is on the rise: 58% of agencies now support app-based fare payment. Europe leads, with 86% adoption.

— Open-loop systems are growing fast, driven by goals of simplicity, interoperability, and security.

— Hardware upgrades are a top priority, with 66% of agencies citing user-friendly design as the most important feature.

According to HID’s Fernando Herkenhoff, open-loop systems not only improve efficiency but reduce the high costs of handling cash, which can account for double-digit operational expenses due to theft, fraud, and maintenance. These systems also enhance boarding speed, punctuality, and safety.

Security is another major factor, as EMV and PCI standards ensure robust fraud protection. Reliable validators accepting all fare types in a single tap also reduce user confusion and boarding delays.

Beyond fare collection, modern ticketing enables smarter operations. With responsible data use, AI can help optimize routes, refine schedules, and introduce dynamic fare structures based on rider behavior.

As a leader in secure, scalable fare technology, HID is committed to open, interoperable systems that empower agencies to own and operate their infrastructure with flexibility and insight.

“We’re focused on enabling future-proof, rider-friendly systems that deliver lasting value,” says Herkenhoff.

The message is clear: in today’s digital age, seamless, secure fare collection isn’t optional—it’s essential.