Means of payment and urban transportation: optimizing transit - PaynoPain
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Optimizing transit in payment modes for an efficient urban transportation experience

24 April, 2024

Escrito por:Héctor Iglesias
Cargo:Head of Business and Clients

In the field of urban transport, transit payment plays a key role, and its efficiency is enhanced by advanced technologies and innovative approaches. One of the prominent methods is the validation of cEMV cards through zero-value transactions (ZVT), an approach that offers flexibility and improves the user experience.

Below, we will delve into the configuration and transit modes, as well as the key advantages this system brings to public transport.

Validator configuration and transit modes:

In this scenario, the validator is programmed to authenticate cEMV cards through zero-value transactions (ZVT). It is essential that payment gateways and acquirers are specifically enabled to handle this type of transactions and to consolidate validations in the central or back office system.

Model 1: Retail or known rate

This model involves the application of pre-established and known fees. Users pay a specific fare for each trip, regardless of the frequency or accumulation of trips in a given period. This approach is transparent and simple, suitable for those who make sporadic trips.

Model 2: Consolidated payment

In this approach, passengers validate their cards in the system's validators, and these validations are stored in the back office. At the end of the day, the fare engine calculates the total amount to be paid for the trips made that day. This consolidation ensures that even if passengers take multiple trips in a day, the charge on their statement will be one consolidated payment per day.

Model 3: Pre-purchase

Here, passengers purchase their tickets online, paid for with a cEMV card. Card validation is performed when boarding the means of transport, confirming the pre-purchase of the ticket. This zero-value transaction avoids additional charges on the account statement, which will only reflect the pre-purchase transaction via the internet portal.

Key advantages of the cEMV system in transit mode:

Frictionless experiences:

The cEMV enables validations without the need to purchase a ticket in advance, set up accounts or download apps. Validation with a contactless card facilitates a frictionless process, eliminating the use of cash, promoting a more secure environment and expediting boarding times.

Best possible fare:

Associating validations to the passenger's account allows fare calculation based on their travel. Operators can implement fare rules, such as maximum daily fares, to attract more passengers to public transport by offering the best possible fare.

Easy maintenance:

With the fare engine in the back office, not in the reader, fare calculations are processed centrally. This simplifies maintenance, as no adjustments need to be made on local devices, reducing complexity and associated costs.

In summary, transit in payment media, especially with the use of cEMV cards and innovative payment modes, not only simplifies urban transport transactions, but also improves operational efficiency and user experience, positioning the system as an advanced and convenient commuter solution.

Héctor es economista de carrera que estudió ciencias físicas como afición. Empezó su carrera en la banca de empresas y posteriormente dio el salto a los medios de pago y cuenta con experiencia en varias entidades de pago.