Last month, two blogs—Torched LA and Streets Blog CAL—independently published compelling posts about open-loop payment adoption by transit providers in California. I encourage you to read both because they tell a story of transit modernization that has taken place across the state over the last six years.
LA Metro's soft launch of open-loop payments in late May, just ahead of the World Cup, is the catalyst for both pieces. It's exciting news: Metro is one of the last major transit operators in California to offer this new way to pay.
While we haven't yet achieved the Cal-ITP vision of traveling the length of the state on transit using only a debit or credit card, we're much closer.
Operators carrying the majority of statewide ridership now offer open-loop payments alongside legacy fare collection methods. But there is still work to do. Neither LA Metro nor Clipper in the Bay Area yet offers reduced fares for eligible riders using open-loop payments.
For transit providers to fully transition to open-loop payments and sunset legacy fare collection methods, such as proprietary agency cards and cash, they need a discount program that allows eligible riders to receive a reduced fare when utilizing open-loop payments. Cal-ITP Benefits solves this problem. Our product helps riders confirm their eligibility for a transit benefit and then facilitates registration of their debit or credit card so they automatically receive reduced fares when they tap to pay.
Cal-ITP Benefits is available today to any California transit operator, regardless of size. It's not only a highly-efficient and convenient way to provide transit benefits to eligible individuals, it also establishes a standard that ensures uniform benefit eligibility across California while relieving operators of the burden of establishing eligibility policies. If you're a transit provider offering open-loop payments, visit the Rider Benefits section of the California Mobility Marketplace to learn how your agency can support reduced fares as part of your tap-to-pay implementation.
Please share this story of transit modernization in California with your colleagues, friends, and family. It's happening!
Cheers!
Andy
Product Lead, Cal-ITP Benefits
andy@compiler.la