Monday, December 23, 2024

What Is Automated Fare Collection (AFC) System and How Does It Work?

If you have ever been to a metro station or a railway station, you would have come across a fairly big machine for tickets. That is exactly what automated fare collection (AFC) systems are. These automate ticketing for public transport. Plus, these are in high demand.

According to Extrapolate, the Global Automated Fare Collection (AFC) System Market is estimated to hit a valuation of $16.82 billion by 2028. This is a staggering high from $9.2 billion in 2021. It may not come across as an interesting system but if so, why is it in such high demand? Let’s find answers in this article.

What is the Automated Fare Collection (AFC) system?

A digitalized ticketing system used in transportation systems for the public is called an Automated Fare Collection (AFC) system. It replaces manual procedures with an automated fare collection system. AFC systems are frequently seen at parking lots, railroads, buses, ferries, road toll booths, fast-food restaurants, and convenience stores.

How does AFC work?

Here is a general overview of how automatic fare collection systems typically operate:

  1. Ticket Purchase: Passengers can buy tickets through various channels such as ticket vending machines, mobile apps, or online platforms. These tickets can be physical cards, virtual tickets, or mobile QR codes.
  2. Ticket Validation: Upon boarding a vehicle or entering a station, passengers validate their tickets using ticket validators or turnstiles. These devices verify the ticket’s validity and ensure the passenger has paid the correct fare.
  3. Fare Calculation: AFC systems calculate the fare based on factors like distance traveled, fare zones, or predetermined rates. The system may also consider discounts for specific passenger groups (e.g., students and seniors) or time-based fares (e.g., peak hours).
  4. Data Processing: AFC systems collect and process data related to ticket sales, fare transactions, and passenger movements. This data is used for revenue management, passenger analytics, and system optimization.
  5. Integration and Interoperability: AFC systems often aim to integrate different modes of transportation, enabling seamless travel experiences. This integration allows passengers to use a single ticket or payment method across multiple operators and modes of transport.

What are the Advantages of an Automated Fare Collection System?

  1. Convenience and Accessibility: AFC systems enhance the convenience and accessibility of public transportation for passengers. They offer various payment options, including cash, mobile applications, e-wallets, and contactless cards, allowing passengers to choose the method that best suits them.
  2. Faster and More Efficient Transactions: By eliminating the need for manual cash handling and reducing reliance on human operators, AFC systems enable faster boarding and shorter dwell times. This results in more punctual service and improved operational efficiency.
  3. Seamless Integration and Interoperability: AFC systems facilitate the integration of different modes of transportation, enabling passengers to use a single ticket or payment method across multiple operators and modes of transport. This integration promotes seamless travel experiences and simplifies the ticketing process for passengers.
  4. Enhanced Data Collection and Analysis: AFC systems aggregate extensive transit data, including passenger numbers, routes, and other relevant information. Transit agencies can use this data to optimize operations, improve service planning, and enhance the overall transit experience.
  5. Reduced Fraud and Revenue Leakage: Digitizing the fare collection process helps AFC systems reduce instances of ticket fraud, theft, and revenue leakage. They incorporate security measures such as encryption and authentication mechanisms to ensure the integrity of the fare collection process.

Case Study: Transforming Public Transport in Bishkek with Automated Fare Collection Systems

Background

Bishkek, the capital and largest city of the Kyrgyz Republic has a population of approximately 1.2 million. The city’s public transport services are operated jointly by municipality-owned trolleybus services and private bus companies. This fleet includes 300 municipal vehicles and over 2000 privately operated minibusses.

Challenge

The municipality aimed to increase transparency in payment systems for public transport and boost revenue. They recognized the strategic benefits of implementing a reliable Automated Fare Collection (AFC) system to redefine the payment experience for both travelers and transport providers across the city.

Implementation

To improve user comfort and expedite processes, the O-CITY smart payment platform was implemented by combining multiple payment options. Physical cards, smartphone applications, and other digital payment methods were all integrated into this system.

Key Results

  • Daily Usage: Over 200,000 cards are used daily by passengers, showcasing the widespread adoption of the new payment system.
  • Integrated Agents: The system successfully integrated 16 agents, ensuring a comprehensive and unified payment solution across different transport modes.
  • Daily Rides: The city now averages more than 300,000 rides per day, indicating a significant improvement in public transport usage and efficiency

Final Thoughts

As technology progresses, Automated Fare Collection (AFC) systems will become even more convenient and accessible. Passengers will have a wider array of payment options, from contactless cards to mobile apps and wearable devices. The ticketing process will be streamlined, allowing for seamless integration and interoperability across different modes of transportation. Imagine a future where a single ticket or payment method grants you access to buses, trains, ferries, and other shared mobility services, making travel effortless and hassle-free.

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