Introduction
Metro systems play a crucial role in meeting the transportation needs of rapidly urbanising cities. To improve efficiency and passenger convenience, operators are adopting technological solutions. One such development is the Automatic Fare Collection (AFC) system, which automates the payment process, facilitates cashless transactions and helps to streamline transit operations.
The AFC system eliminates the need for cash handling and manual ticketing, which saves time for passengers and reduces operational costs for transit authorities.
Moreover, AFC systems furnish valuable data and insights that help improve transit planning and management. The metro operators can gain a deeper understanding of travel patterns, peak hours, and popular routes from the data collected by AFCs. This information can further assist operators to optimise service schedules, allocate resources efficiently, and identify areas for improvement
In an AFC system, passengers can use smart cards, mobile devices, and contactless bank cards to complete their journeys faster and more efficiently.
The global AFC market is estimated at $11.6 billion in 2024 and is expected to grow to $45.1 billion by 2034
Key Components of an Automatic Fare Collection System
Automatic Fare Collection (AFC) systems rely on a network of interconnected components that work together to facilitate fare transactions. The key components of an AFC system include:
- Fare Media: The term “fare media” refers to the methods employed by passengers to remit payment for their transportation services. Within an Automatic Fare Collection (AFC) system, the predominant fare media options include both open-loop and closed-loop solutions:
- Contactless Smart Cards: Smartcards enable passengers to pre-load monetary value, which facilitates tap-in and tap-out transactions at the commencement and conclusion of their journeys. These prepaid smart cards use RFID technology and are widely adopted in modern metro systems.
- Mobile Ticketing & QR Codes: Contemporary automated fare collection (AFC) systems now facilitate ticketing through mobile applications that generate QR codes. Additionally, the implementation of contactless EMV cards enables passengers to complete their travels without the need to pre-load funds onto specifically designed transport cards.
- Magnetic Stripe Cards: Older AFC systems used magnetic stripe cards that required swiping through a reader. These cards are primarily used in the New York and Paris Metro Systems.
- Validation Devices: Validation devices ensure that only authorised passengers enter & exit the transit system.
- Turnstiles & Automated Gates
- These are physical barriers installed at metro stations to validate tickets before allowing entry.
- They use RFID, QR, or NFC readers to authenticate fare media.
- Biometric & Facial Recognition (Emerging Technology)
- Some metro systems are testing biometric authentication for seamless travel.
- Example:China and Japan are experimenting with facial recognition-based entry systems.
- Transaction Processing & Back-End System: The central processing system serves as the core element of any Automatic Fare Collection (AFC) system. It is tasked with performing fare calculations, processing transactions, and managing data from fare validation devices. The integration of these functions is essential for ensuring the efficient and secure operation of the entire system.
- Interoperability & Integration: Interoperability allows a single payment method to work across different transport modes.
- National Common Mobility Card (NCMC)
- Introduced by the Government of India to enable seamless travel across metros, buses, suburban rail, and even toll plazas.
- Multi-Modal Integration: This ensures that AFC systems are linked across various transport networks.
- Open Loop Payment Systems: This allows passengers to pay using regular bank-issued debit/credit cards instead of metro-specific smart cards.
- Example: London’s TfL (Transport for London) allows contactless payments with Visa, Mastercard, and Apple Pay
Benefits of Automated Fare Collection System
Improved Efficiency: One of the primary advantages of an Automated Fare Collection (AFC) system is its capacity to enhance operational efficiency. It diminshesh the dependence on manual collection methods, these systems effectively minimize the potential for human error, and eliminate queues.
Enhanced Passenger Experience: Automated Fare Collection (AFC) systems enhance the overall efficiency of transit services. The availability of contactless payment cards, smartphones, and EMV payment methods simplifies the process for passengers. It eliminates the necessity of purchasing tickets in advance or reloading fare cards at designated locations
Data-Driven Decisions: The AFC systems collect data from passenger journeys reveals which enables metro operators to perform in-depth analyses of their networks. Operators use this data to gain insights into ridership patterns, identify strategies for service optimization, and understand passenger routes.The authorities can utilise this data to effectively plan new routes and improve overall operational effectiveness
Cost Savings: Although Automated Fare Collection (AFC) systems necessitate a significant initial investment, they ultimately contribute to reduced labor costs and lower maintenance expenses compared to traditional fare collection machines. Furthermore, AFC systems are designed with scalability in mind, which enables them to adapt and grow alongside the expansion of the transit network.s
Roadblocks in Implementing Automated Fare Collection Systems
Although there are numerous benefits associated with the implementation of an automatic fare collection solution, there are specific challenges that may arise during its adoption.
High Set-up costs: The high initial setup cost is the most common obstacle to implementing AFC systems. These systems necessitate numerous interdependent components, leading to higher costs. These components include equipment like gates and validators, software updates, and ensuring compatibility between existing infrastructure and various fare media. Nevertheless, these initial costs are frequently mitigated by substantial long-term savings.
Integration with Legacy Systems: Upgrading Automated Fare Collection (AFC) systems presents a challenge, as it necessitates integration with existing fare collection systems. It is imperative to ensure compatibility and facilitate smooth data transfer between the legacy and modern systems.
Data Privacy Concerns: An Automated Fare Collection (AFC) system is responsible for gathering extensive passenger data. Therefore, safeguarding the security and privacy of this information is of paramount importance. That’s why AFC systems require heavy investment in strong cybersecurity measures to protect sensitive data effectively.
Case Study: MTR Hong Kong’s AFC System Upgrade – A Model for Modern Metro Fare Collection
Formed in 1975, MTR Corporation Limited of Hong Kong is among the world’s most efficient metro networks. The organization has 10 operating railway lines and 93 railway stations in Hong Kong. The organization has revealed investment of over $1.3 billion in its Automatic Fare Collection (AFC) system enhancement. This modernization program seeks to bring in new gates with a credit card payment facility, thus enhancing passenger convenience and transaction speed.
Current AFC System and Need for Upgradation
The current AFC system is mainly dependent on the Octopus card, a contactless smart card accepted throughout Hong Kong’s transport network. The current system was inflexible in the payment method. With this new upgrade, MTR hopes to diversify its fare collection system by adding open-loop payments such as Visa, Mastercard, and mobile wallets, keeping with international transit payment trends
Upgrades in the New System
Advanced Sensors
The new AFC gates are provided with sophisticated sensors and quicker response systems to allow unproblematic access. The inclusion of credit card payments also favors tourists and occasional users who do not carry an Octopus card, thus promoting access to the metro system by more people.
Improved Security
From a safety point of view, the newer AFC system contains end-to-end encryption and real-time validation of transactions in order to prevent secure and hassle-free payment acceptance. With this shift to open-loop, MTR has a better interoperability feature, under which passengers utilize their normal cards instead of holding stored-value ones. This removes the necessity of having large amounts of physical hardware for card issues and re-charge kiosk stations.
Lesson for Indian Metro Systems
The model used by MTR showcases the benefits of a successful Automatic Fare Collection (AFC) system. The experience of MTR Hong Kong in revamping its AFC system is a relevant reference point for Indian metro systems that are increasingly implementing similar technologies.
Integrating Smart Ticketing in Delhi Metro: AFC System Upgrade
Delhi Metro, India’s largest metro system, operates across a 390.14 km network with 288 stations, 12 operational corridors, and 367 trainsets. It serves a daily ridership of 6.7 million passengers. With increasing passenger volumes and the adoption of advanced ticketing methods such as smart cards, QR-based ticketing, and the National Common Mobility Card (NCMC), DMRC decided to upgrade its existing Automatic Fare Collection (AFC) system. This upgrade aims to enhance transaction speed, improve system interoperability, reduce congestion at entry and exit points, and integrate with emerging digital payment technologies.
Need for Upgradation
The Delhi Metro Rail Corporation (DMRC) upgraded the Automatic Fare Collection (AFC) system to accommodate the following:
- Interoperability: DMRC uses DESFire-based contactless smart cards (ISO-14443) and contactless smart tokens, which work only within the DMRC network. The upgraded AFC system enables an integrated ticketing solution for seamless travel.
- Introduction of Digital Tickets: DMRC has introduced mobile-based QR-Ticketing, allowing passengers to buy tickets online. This reduces reliance on physical ticketing and helps manage queues at stations. To facilitate this transition, DMRC upgraded its AFC system to support secure QR code validation.
- Implementation of the National Common Mobility Card (NCMC): The NCMC, based on EMV (Europay, Mastercard, Visa) standards, works under the “One Nation, One Card” initiative. It allows passengers to use a single card for metro, bus, and other transit payments, improving convenience.
Intricacies in Upgrading the Existing AFC System
- Technical Complexity: The Delhi Metro Rail Corporation (DMRC) operates Automatic Fare Collection (AFC) equipment from three different Original Equipment Manufacturers (OEMs). Each OEM utilises distinct hardware and software specifications as well as proprietary protocols. This diversity introduced a level of complexity that hindered the uniform integration of new functionalities across all variants.
- Operational Continuity: Another key challenge for DMRC was maintaining continuous metro operations while upgrading the AFC system.
- Staff Training and Passenger Awareness: An additional task for DMRC was training staff to operate the upgraded system and informing passengers about new features to ensure a smooth transition.
Upgrade Details:
- A total of 2,889 Automatic Fare Collection (AFC) gates have undergone upgrades, encompassing 9 distinct variants from 3 different Original Equipment Manufacturers (OEMs).
- Given the diverse hardware and software configurations associated with each gate type, the upgrade process necessitated reverse engineering and modifications to accommodate new functionalities, including the National Common Mobility Card (NCMC) and Quick Response (QR) ticketing, in addition to the existing DMRC smart card.
- DMRC carried out the upgrade in phases, beginning with two gates at each station to maintain regular operations.
Modernisation of Ticket Vending Systems
The Delhi Metro Rail Corporation (DMRC) has completed the upgrade of 1,170 Ticket Vending Machines (TVMs). This process involved updating both hardware and software components.
The upgraded TVMs now include:
- Dispensing of Paper QR Tickets.
- Dispensing of Contactless Smart Cards and National Common Mobility Cards (NCMC) (under implementation).
- Recharge functionality for Contactless Smart Cards and NCMC (under implementation).
Upgradation of Add Value Machines (AVMs)
DMRC has upgraded 1,130 Add Value Machines (AVMs), which were primarily designed for the online recharge of smart cards.
The upgraded AVMs now offer:
- Online recharge for Contactless Smart Cards (CSC) and National Common Mobility Cards (NCMC) using cashless payment modes.
- Issuance of Paper QR Tickets through cashless transactions (under development).
Conclusion
The introduction of Automatic Fare Collection (AFC) systems is an important milestone towards the modernization of metro travel, improving efficiency and passenger convenience. Through the incorporation of contactless payment, digital ticketing, and interoperable solutions such as the National Common Mobility Card (NCMC), metro operators can optimize fare collection and enhance commuter convenience. Yet, deploying and upgrading AFC systems is fraught with challenges, such as high capital expenditure, integration with the existing infrastructure, and data security issues.
In the future, ongoing developments in AFC technology will increasingly improve transit performance, assisting metro rail systems in coping with rising ridership and enhancing service delivery.
