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Open-loop account-based ticketing

Understanding open-loop payments

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What is open-loop?

Open-loop payments are attracting attention worldwide as a convenient method of paying for transport and other services. Open-loop means any payment method can be used to make payments without having to be part of the system itself. In essence, a customer can use their existing contactless card to pay for a journey even if they are not affiliated to the transport network. A single payment method can therefore be used for multiple payment services.

What is closed-loop?

In closed-loop systems the payment method (a card) is linked to the system. For example, a transport card distributed by an operator can only be used for services provided by this operator, such as the Oyster card in London. Most operators functioning as closed-loop models face higher maintenance costs and have fewer options for managing fares, which are more complex and have to be applied at different levels of the system. From the customer’s perspective, closed-loop means a card is required and needs to be funded either through top up or subscription. Ticket counters and vending machines are still required in this scenario, further increasing maintenance costs.

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Account-based ticketing

Open-loop payment is often associated with account-based ticketing. Moving away from card-centric programmes, each customer has an account held in the cloud which carries all the necessary data to determine their fare. Rules are set by operators and automated, enabling instant payment. Through this account, customers can use the app to get a 360 degree view of their activities even if they use multiple payment methods.

Contactless payments

Open-loop is also associated with contactless payments. Card based debit or credit contactless payment instruments can be used to transact via local, Visa, Mastercard, Amex, or UnionPay card schemes. Emerging payment methods such as mobile wallets (ApplePay, SamsungPay, GooglePay, Alipay and others) are enabled while NFC-enabled wearables such as smart watches or wristbands are increasingly used at city attractions or events, removing the need to wait in line.

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Which options does O-CITY offer?

Although open-loop is becoming the most widely adopted payment method across cities worldwide, some operators still opt for a closed-loop system as a transition to cashless and contactless payment. With this in mind, O-CITY is interoperable with all payment methods allowing the customer to track their payment history from the app while operators manage payment choices from their portal. O-CITY is a dual model that can cater for the specific needs of operators and their customers worldwide.

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Open up the city

We believe that allowing customers to pay the way they want delivers a frictionless experience with direct impact on digital payment adoption. Enabling open payments and adding value-added services for these payments to be accepted for transport and other services makes for smarter cities and more satisfied customers.

Benefits – everyone wins

Transport service providers

  • Cost reduction
  • No infrastructure investment
  • Quick deployment
  • New revenue generation
  • Increased efficiency with easy and quick centralised updates
  • Reduced fraud and losses
  • Simplified fare management

End customers

  • 360 degree view of activities
  • Payment choice
  • Self-service management
  • Remove ticketing waiting time
  • Automated personalised pricing
  • Applied incentives, discounts and social benefits
  • Insights and smart planning

Real life use cases of the O-CITY platform

Bishkek

As part of its drive toward digital transformation and smart city programmes, Bishkek embarked on an innovative project to move away from the use of cash. 

Download the case study to discover how O-CITY's automated fare collection met these challenges head-on.

Download the Bishkek case study
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Bogota

‘Tullave’, the card provided by Recaudo Bogota in a closed-loop card system, posed some challenges: costly usage, outdated infrastructure, limited choice of payment methods and low speed of service. 

Switching to O-CITY's complete open-loop payment system enabled customers to pay using the payment instrument of their choice.

Download the Bogota case study
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Uzbekistan

The Ministry of Transport decided to engage in an ambitious digital transformation programme to automate public transport fare collection. 

Download the case study to learn how the O-CITY platform offers a turnkey solution.

Download the Uzbekistan case study
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Kenya

Making payments across Kenya 100% digital and cashless and removing the need for print tickets were the key objectives of this project.

Kenya on it's way to contactless payments. Learn all about the journey by downloading the case study.

Download the Kenya Matatu case study
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Gain insights by reading the O-CITY Blog

  • Intermodality: One Trip, Many Modes – The Future of Urban Mobility

    Fueled by surging urban populations, the need for convenient, accessible and quick commuting over the city has become in focus. Enter intermodality—the seamless integration of different transport modes into a single, fluid journey. Whether you walk to a bus stop, take the metro, and hop on a city bike for the last mile, intermodality turns what used to be multiple disjointed trips into a coordinated, connected experience.

    The roots of the term trace back to the logistics industry. Intermodal freight transport was revolutionized by standardized containers—designed to move smoothly from ship to train to truck without unloading cargo. This same philosophy now inspires modern urban mobility: shift people, not just goods, across different modes, without disruption or complexity.

    The O-CITY Blog | 3 minute read
  • 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 O-CITY Blog | 4 minute read

Want to know more about open-loop payments?