Benefits of shifting from Card-Based Ticketing to Account-Based Ticketing for transport operator

As cities grow smarter and commuters expect more flexibility, transport systems are undergoing a transformation. One of the most impactful shifts in recent years is the move from Card-Based Ticketing (CBT) systems to Account-Based Ticketing (ABT). This transition represents more than a change in technology—it reflects a broader evolution in how mobility services are designed, managed, and experienced.

The legacy of closed-Loop fare systems

Closed-loop fare systems—where value is stored on a physical card—remain common in global public transport. Examples include Kazakhstan’s Onay card, Kenya’s Tap to Ride, and Go Card in Bahrain. These systems are often siloed, requiring physical top-ups and offering limited interoperability.

However, the trend changes. Urban population demand seamless, cashless mobility for instance, in LATAM and Asia, the popularity of contactless EMV and mobile-first solutions are on the rise. Cities are increasingly adopting open-loop, account-based ticketing models, for example Cairo in Egypt following Egypt’s Vision 2030. Operators seek lower costs, better data, and flexibility, making ABT a strategic future-proven upgrade.

What’s driving the shift from CBT to ABT?

Several factors are accelerating the adoption of ABT:

• Digital transformation agendas: Cities are investing in infrastructure that supports smarter, more integrated urban mobility. Having scattered systems and various independent payment methods is no longer viable. Centralisation of operations helps to quickly adjust tariffs, manage various number of operators and even introduce concessions onto ones’ accounts.
• Consumer behaviour: With more tech-savvy, mobile-first generations, the phone fast becomes a new general point of entry and single point for payment for many. Drivers, commuters, tourists all want convenience and are accustomed to using smartphones, digital wallets and contactless payments in other aspects of life.
• Cost pressures: Operators seek systems that are easier and cost-efficient to maintain.
• Inclusion and accessibility: ABT concept allows to enrol unbanked or underserved populations through connecting alternative access channels that are familiar for them (e.g., QR codes or ID-based accounts).

What Is Account-Based Ticketing?

ABT represents a modern, flexible approach to fare collection. Instead of storing value on a card, ABT shifts the focus to a centralized account in the secure cloud. Commuters authenticate themselves via a variety of identifiers—such as contactless bank cards, smartphones, or even national ID numbers.

Once a commuter taps in, their trip data is sent to the back office, where fare rules are applied and calculated in real time. There’s no need to pre-load value or understand complex fare structures. This open-loop system is more adaptable and scalable—allowing integration across transport modes and even city services.

Five key benefits of ABT for operators and cities

Seamless and personalised user experience
Riders no longer need to acquire a separate transit card. Instead, they can use the smartphone and the dedicated app as the means of payment. This reduces barriers for occasional riders and tourists as well as provides cross-sell and smart personalisation options for the transport operator. According to McKinsey report, personalised offers are capable to boost revenue up to 15%.

Real-Time fare flexibility
The 'Future of Urban Mobility' survey conducted by Visa in 2023 across Australia, Indonesia, Japan, and Singapore, revealed:

• 45% of commuters would increase their use of public transport if fare capping were implemented.
• 58% desired a single payment method for all transportation modes, which would encourage them to use public transport more
• 96% expected public transport providers to offer contactless payment methods, with 65% likely to use such options.

These findings suggest that ABT systems, which facilitate real-time fare adjustments and capping, can effectively encourage increased public transport usage and provide financial benefits to passengers.

Lower operational costs
ABT reduces the need for physical card production, ticketing machines, and support infrastructure. For cities like Tashkent in Uzbekistan, this meant phasing out tokens and cash, reducing fraud and free riding to less than 0.1%, and improving financial transparency.

Ride Sharing
ABT does not end on just bus or rail. The platforms built with account-based principles can scale to include bike-sharing, parking, toll roads, leisure city services and more—creating a seamless intermodal transport ecosystem environment. One account can power an entire urban experience.

Actionable data and analytics
While data privacy concerns is still one of the restrains for many markets and cities to fully roll-out the ABT approach, with establishing the proper security of the data and data protection acts such as GDPR, the challenge becomes an opportunity. With travel data captured in real time, cities and operators gain powerful insights. These can inform route planning, service frequency, and investment decisions. O-CITY stores the consented data centrally in the secure cloud, providing 360-degree view for transport operator on the passengers' behaviour and preferences.

Real-World success stories

O-CITY has helped modernize Uzbekistan’s public transport system through a nationwide digital transformation. The Ministry of Transport launched a project to automate fare collection, aiming to reduce cash use and improve efficiency. As a result of introduction of digital ticketing to the transport system of Uzbekistan, the digital payments adoption rate increased by 361% over few years from launch. 

O-CITY was installed on all public transport in the city, providing quick and accessible payments to passengers and joining all of Tashkentʼs transport modes, including metro, taxi, and ground public transport. It created a multimodal, unified ticketing experience for commuters and tourists. As an open-loop technology with extended hybrid configuration capabilities, it means ATTO can offer a broad variety of payment methods from closed-loop physical cards and virtual ATTO transport cards to QR-codes, NFC devices, wearables, and local and international branded cards, all from a single platform.

A unified platform of O-CITY gives transport operators real-time data and streamlined system management. These advancements support Uzbekistan’s goals of building a smart city infrastructure and transitioning toward a digital economy. By adopting O-CITY’s platform, the country is enhancing urban mobility and improving the commuter experience.

Conclusion

The global shift from Card-Based Ticketing to Account-Based Ticketing isn’t just a trend. ABT empowers operators with operational agility, municipalities with better data and integration opportunities, and commuters with effortless, flexible access to public transport. As urban environments continue to digitally transform, ABT provides the foundation for truly connected, multimodal journeys. It’s not only about replacing plastic cards—it’s about enabling a transport experience that is inclusive, intelligent, and ready for the future.