Starting on December 10, riders can pay for Bay Area transit with a debit or credit card. BART launched its open payment system earlier this year, and tap-to-pay already makes up over 10% of all BART fares, with over 900,000 trips in the first 60 days.

Transform applauds this advance, which will increase ridership and ease the financial burden on low-income riders by making it easier to hop on a train or bus. However, as we detailed in our report, Fair and Accessible Fares, the rollout of open payments is lacking some of the features critical to an equitable system.

The benefits of open payments

The current Clipper card, which riders can continue to use, requires transit users to load cash value onto a plastic or virtual transit card. Riders can add value through electronic transfer, at a fare machine at a transit station, or through a third-party vendor. 

Prepaying for transit can be a challenge for low-income riders who may be on a tight budget. Open payments removes the prepayment requirement, allowing riders to pay as they go, with their payment card only charged when they ride.

Open payments systems are a great way to encourage people to try transit. Infrequent riders don’t have to manage a Clipper card or hold a balance on one; they can simply tap to pay with a credit or debit card when they ride. 

With the rollout of open payments on all Bay Area transit systems that currently take the Clipper card, riders will automatically get discounted fares, saving up to $2.85 per trip, when transferring between transit agencies within a two-hour window. 

What you need to know to ride

To take advantage of open payments, all you need to do is tap your credit or debit card or use your smartphone wallet on the fare box or fare gate. The transit fare will be charged to your account. You may need to adjust the settings to use a card from the digital wallet on your phone without opening the phone and pulling up the card each time.

If you have money on a Clipper card, don’t worry: you can still use it. 

If you have a senior, youth, Clipper START card, or other fare discount, you will still need to use your Clipper card to receive the discounted fare. Check out the Clipper FAQ to learn more. 

What MTC must do next

The Metropolitan Transportation Commission’s implementation of open payments doesn’t include these crucial features:

• Linkage with fare discount programs. Discounted fares through Clipper Youth, Senior, RTC, and Clipper START programs are NOT available through contactless bank card payment. Riders must still use their discount program-issued Clipper cards to receive these discounted fares. The State of California has systems that would allow a rider to be automatically qualified for an income- or age-based discounted fare via their bank card. MTC must add fare discount programs to its open payments program as soon as possible.
• Fare capping. Fare capping automatically caps daily, weekly, or monthly fares when payments on the same card reach the cost of a pass for that transit system. For example, if a weekly transit pass is $20 and a single fare is $3, a user who rides seven or more times in a week would benefit from the fare cap. MTC’s open payments system should add automatic fare capping, where available.
• Programs to connect unbanked riders with banking options. One of the biggest challenges to open payments is that the lowest-income riders often have the least access to banking services and thus can’t take advantage of a tap-to-pay system. MTC should create an outreach and information program like the one implemented by Monterey-Salinas Transit to help riders connect with low-fee banking and other digital payment options.

As panelists discussed in our open payments webinar, moving to digital payments can save transit systems money. Tap-to-pay equipment is cheaper to maintain and update than cash fare collection machines, freeing up operating funds for improved service. Clipper 2.0 can be a positive development for Bay Area transit if it’s paired with equity initiatives.