Pay-as-you-go or Digital in UK public transportation?

Pay-as-you-go (PAYG) – Success or Limitation?

Sébastien offers a structured perspective on pay-as-you-go (PAYG) in the current mobility landscape. He notes that PAYG discussions are particularly active in rail projects outside London, where authorities increasingly seek greater control through franchising or potential re-nationalization. In this context, interoperability of PAYG emerges as a critical topic, with rail “tap converter” project led by Tracsis (Tracsis secures Tap Converter PAYG system contract in UK) and Coral Project (A collaborative approach for the future of cEMV | Unicard | A collaborative approach for the future of cEMV | Unicard) illustrating progress in this sense.

A core observation is that, while PAYG has achieved substantial success, its inherent anonymity and targeting of consumers willing to pay full fares can present some limitations. Moreover, PAYG systems often operate within non-interoperable ecosystems, a fragmentation that public authorities will need to break. Although existing mechanisms can bridge PAYG with account-based ticketing (ABT) by registering a card on a website and linking it to a cEMV card profile, adoption of these bridges remains limited; Worldline’s experience in Lyon indicates such methods reach less than 1% of consumers.

Digital Ticketing – A Growing Trend

As a response, digitization of tickets is a growing trend that could complement existing PAYG. This includes digitizing smart cards through initiatives like ITSO on mobile, digital barcodes, and other apps that link tickets to a user account. To illustrate the traction, some examples include:

• Transport for Wales’ shift toward “Smart Ticketing,” where digital journeys now account for about 56% (up from around 17% in FY2020);
• Travelmaster’s eCommerce progress in Sheffield (from under 10% in FY2022 to over 25% in FY2025);
• Transport for Greater Manchester’s Bee App, which drove significant adoption on both PAYG and digital journeys (approximately 16 million journeys);
• Fairtiq’s PAYG-like approach in Denmark with Rejsekort, but app/geolocalization-based.

Beyond these, digitizing smart cards has demonstrated impact in major markets. IDFM (Paris Transport Authority) has deployed a digitized Navigo pass on smartphones (via Worldline), achieving substantial ticket sales without gate changes. He believes that ITSO on mobile presents a similar potential for reaching this great result.

Should Two Approaches Co-exist?

The central question remains open: should or can PAYG and digitization of tickets merge, and do customers want it? Sébastien argues for coexistence, given persistent variations in consumer preference: some users value anonymity, others prefer account-based to benefit from special tariffs, while preferences also span plastic, app, and other modalities. A critical consideration, however, is the actual cost of running both systems.

Smart Transport Forum – A Place for Cross-Sector Collaboration

Reflecting on the debate, Sébastien Givry emphasizes that forums such as the Smart Transport are great places for cross-sector dialogue among transport authorities, operators, government bodies, solution providers, and consultants. Let’s drive more collaborative pilots, share insights, and consider joining the Forum.