Preparing for a fare collection upgrade is no easy task. Considerations include managing vendor End Of Life (EOL) notices, selecting the best partners, and planning a smooth transition. Learn how your agency can ease that burden.
Modernizing your fare collection system is so much more than a technical upgrade. It's a strategic move that can transform the rider experience, streamline operations, and get your transit agency future-ready. But how do you know when it's time to sunset your legacy system, and what does a seamless transition look like?
When Is It Time to Sunset Your Old Fare System?
Migrating from an old system to a new one should be top of mind, early and often. The market has been handling procurement (differently, but slowly) with a more open approach to integration. This could feel like more work, but in the long run it gives your agency the ability to swap out systems that don’t work or add new technologies without going to bid.
“The best time to plant a tree was twenty years ago. The second best is now.”
Outdated fare collection systems often show clear signs that it's time for a change. Key indicators include:
- Rising maintenance costs: Older hardware and software require more frequent repairs and specialized support, driving up operational expenses.
- Lack of vendor support: As technology ages, vendors may discontinue updates, patches, or parts, leaving your system vulnerable and unsupported.
- Security vulnerabilities: Legacy systems are more susceptible to cyber threats, putting sensitive rider and payment data at risk.
- Customer complaints: Slow, unreliable, or confusing fare systems frustrate riders and can erode public trust.
- Inability to support new payment methods: Modern riders expect contactless, mobile, and account-based options. These are features that old systems can't deliver.
What Does a Successful Transition Look Like?
A well-executed transition to a modern fare collection system unlocks a host of benefits.
Optimized passenger experience. Providing faster and more convenient payment options that integrate seamlessly into the daily commute can improve the customer experience. With a modern fare collection system, riders benefit from streamlined transactions and a variety of payment methods, such as contactless cards and mobile wallets, all while experiencing minimal disruption to their routines. This focus on efficiency and ease of use not only enhances customer satisfaction but also encourages continued use of public transit.
Operational efficiency. Fare collection modernization leads to significant operational efficiency. It reduces maintenance requirements, streamlines processes, and provides access to better data for decision-making. With updated technology, transit agencies can minimize downtime and costly repairs, automate routine tasks, and integrate systems for smoother operations. Enhanced data collection and analytics empower teams to make informed decisions and respond quickly to changing rider needs, ultimately improving overall service delivery.
Future readiness. Having the flexibility to adapt to new technologies and payment trends is crucial to a modern fare system. We don't know what the future holds and as new transit technology is developed, it is necessary to have a system that can improve through adding new, complementary solutions without costly change orders or new RFPs. And be aware of "future-proof" language, there is no system that can accurately divine what's yet to come.
Invisible change. Enabling riders to continue their journeys without ever noticing the extensive behind-the-scenes transformation taking place should be a goal and a tactic. When transition is managed efficiently, daily commutes remain uninterrupted while riders experience a consistent level of service throughout the process. This plan approach allows transit agencies to upgrade their infrastructure while maintaining rider confidence and satisfaction.
Step-by-Step Plan for a Smooth Transition
1. Planning
While a good place to start is using the project plan from the bid response, there is more to consider. Adding your agency project team to evaluate and enrich can increase the program's success.
- Assess current system limitations and define clear goals for modernization.
- Consider neighboring systems and how they can be included.
- Develop a detailed project roadmap with timelines, milestones, and risk mitigation strategies.
- If possible, define (or redefine) your fare policy before going to bid.
2. Stakeholder Engagement
Identify your stakeholders early. It is essential to have a project owner that can work well throughout the organization and externally. This role is an advocate for the project and will ensure success.
- Involve stakeholders early.
- Gather feedback from riders and frontline staff to inform system requirements.
- Include internal teams that often get left out of the consideration (for example, your marketing team will need to be involved early so their strategy can be developed).
3. Early Launch and Testing
Properly phasing projects is part art and part science. Experienced project managers can successfully navigate expansion by relying on a phased plan. This also requires consideration to who can participate and where to deploy. There is an art to building rider advocacy with early rollout wins .- Phased approach around Minimum Viable Product (MVP) style deployment (this is not a pilot program, it is an iterative launch).
- Demand that vendors co-locate in your space to improve communication and speed to delivery.
- Collect feedback and resolve issues before full-scale deployment (especially with stakeholders that can support agency accessibility initiatives).
4. Data Migration and Integrations
A successful system transition hinges on seamless data migration. Access to clear and thorough API documentation early can save time down the road with current and future integrations.- Receive API documentation (from all suppliers) early to ease transition.
- Ensure secure, accurate migration of fare and account data.
- Integrate the new system with existing back office, CRM, and reporting tools.
5. Staff and Passenger Education
Effective staff training leads to better information retention when elements like microlearning (or chunking) and interval learning are included. Educating passengers should be an ongoing process that, when done right, increases adoption.- Train staff on new processes, troubleshooting, and customer support.
- Communicate changes to riders through clear, accessible channels.
6. Decommissioning
Offboarding the legacy system is the critical, final step in the transition. When completed effectively, "invisible change" transitions from the old by maintaining uptime without perceived change in the service.- Gradually phase out the old system, ensuring no service gaps.
- Safely dispose of or repurpose legacy hardware and software.
7. Ongoing Data Analysis and Reporting
The work doesn't stop now that the system is deployed. Measuring KPIs helps agencies when used to communicate success to the board, local governments, and the public. Your technology partner can continue to iterate and improve as part of the product feedback loop.- Monitor key performance indicators (KPIs) such as transaction speed, adoption rates, and customer satisfaction.
- Use data insights to optimize the system and inform future improvements.
By following this structured approach, transit agencies can modernize their fare collection systems smoothly—delivering a better experience for riders and staff, while positioning themselves for long-term success.
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Moving On. Helpful hints to consider to avoid the problems that stymie progress. |
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Engaging with a technology partner is an important part of the process. Critical conversations and questions (like: "Do we really need all the things: paper, closed-loop smart cards, open payments, mobile?") internally can help clarify agency objectives. Use the checklist to make sure your agency is aligned beforehand. ✅ Focus on the vendor partnership outcomes. Understand what can be changed and what cannot. ✅ Encourage broad internal stakeholder engagement. UI/UX overview with key stakeholders/riders; Beware of Scope Creep; Source a solution that prevents vendor lock. ✅ Fare policy structure aligned with agency goals. Ensure this happens before the RFP is released. ✅ Phased deployment of various fare rules. Consider early roll out of programs like institutional programs first to capture early, electronic transactions. ✅ Strong external & internal marketing campaigns. Communicating to agency leadership, board members, and community relations should have equal consideration to external promotion. ✅ Address Fare Policy. Consider the impact on all of your customers, including cashless, unbanked/ underbanked. |
Transitioning to a new fare system starts with a plan. Let Kuba help shape yours.
Talk to our team about how your agency plans to modernize fare collection.
