Fair and Accessible Fares
Economic Justice in Transit
Advances in transit payments should benefit all riders, especially low-income transit users
Clipper, the current fare payment system used by 24 of the 27 transit operators in the Bay Area, is a closed-loop, proprietary system managed by the Metropolitan Transportation Commission (MTC). A proprietary closed-loop system presents many drawbacks, particularly for lower-income riders. Moving to an open payment system where riders can pay with their credit or debit cards presents an opportunity to increase accessibility and banking access for hard-to-reach populations. However, if done poorly, without including discount fare programs or providing banking support services, the move to open payments risks leaving low-income riders further behind.
Webinar: Fair and Accessible Fares
- When: November 13, 2025, 3 p.m. PT
- Where: Zoom
- Register here.
Fair and Accessible Fares: Economic Justice in Transit
Transportation is fundamental for access to opportunity and economic mobility. Studies have shown that longer commute times disproportionately decrease economic security for families with lower incomes, and limited access to public transit is associated with lower employment. Transportation is also one of the top household expenses in the United States, with families spending around $12,295 on transportation costs annually. Lower-income families tend to spend the most on transportation: in 2022, lower-income households spent 30% of their after-tax income on transportation.
Transform’s report highlights ways that transit agencies can bring all riders along when they modernize fare payment systems, so riding transit is easier for everyone. This includes linking open payments to rider discounts, fare capping, and assisting unbanked riders in connecting with digital payment options.