To meet the demand of today’s evolving technologies, electronic fare management (EFM) systems need robust back-end processing and revenue management solutions. Whether fares are paid with mobile tickets, smart cards, bank cards or virtual cards, the core of the EFM system must be able to provide more than just secure clearing of revenues and accurate account management — especially for multi-client fare structures.
Back-end clearing systems require tools like customer relationship management, best price calculations and device data imports to name a few. There are in fact three essential features to consider for operating a modern EFM system both today and into the future.
1. Real-Time Transaction Processing
Many EFM systems can verify that a rider’s card has a positive balance, but cannot determine in real-time the exact fare to be charged. To operate in the 21st century, a back-end system must be able to manage calculation and fare processing in real-time. For example, when riders tap their contactless cards or mobile devices on a validator, the back-end system should calculate the fare, validate the transaction against the back office account, and display the remaining balance to the rider instantly. This not only benefits riders with convenient and accurate account management, but also agencies gain greater efficiency of revenue operations.
2. Open APIs
A major element of a successful EFM system is the ability to provide an open architecture design for the integration of third parties. This means APIs are designed at a functional level, not for a specific partner or project. The benefit of open architecture is that it provides easy integration of new partners - even those not thought of during the system design phase. Open APIs guarantee the ease of integrating new technologies or partners as they become available down the road. This helps to ensure compatibility for a future-proof EFM system.
3. Financial System Integration
The automated clearing of revenues is critical — especially when you have multi-agency structures. Nevertheless, most back-end systems are proprietary and do not work well with different accounting software. This is a problem because it requires agencies to procure new accounting software and train employees on a system that operates with their specific EFM system.
However, when your back-end software is designed as a financial system, it will have the ability to interface to multiple, off-the-shelf accounting software and easily integrate into the accounting system most familiar to the agency. In this scenario, a strong revenue package that can handle the sophisticated management of earned revenue, deferred revenue, revenue recognition, and revenue sharing is the result.
Conclusion
The core of your EFM system should deliver real-time account management for your riders, easy integration of future technologies or partners, and a strong financial backbone for the accurate administration of all your EFM requirements.
Ann Derby is the Director of Marketing & Events for INIT Innovations in Transportation Inc. and can be reached at 757.413.9100 Ext. 317. Follow at @INITinc.
