Using a bank card, phone, or smartwatch as a travel pass means no more paper tickets or transit cards. With this new simple and innovative way a commuter can buy a period ticket online and use the bank card or smart device to validate travel.
What are the different contactless payment types?
There are three established models for using it in public transport:
- Model 1 – Tap in – Single Pay-As-You-Go
In this model, every tap of a bank card, phone, or smartwatch is processed as a direct transaction for a single trip. The system charges a fixed fare immediately, without additional fare calculations or post-processing. It is straightforward to implement and well suited for networks with flat fares or occasional travel patterns.
- Model 2 – Aggregate Pay-As-You-Go
Here, taps are recorded and aggregated over a defined settlement period, such as a day, week, or month. Instead of charging per journey, the system calculates the most cost-efficient outcome by applying rules such as daily caps, weekly caps, or multimodal discounts, and then issues a single combined charge. This model ensures passengers always pay the best fare available while reducing the number of payment transactions.
- Model 3 – Bank Card as a Credential
In this setup, the card doesn’t pay at tap; instead, it serves as a credential to verify that the passenger has already purchased a fare product—such as a season pass—stored in the backend. When tapped, the system checks validation status instead of processing a transaction.
How It Works in Real Life?
In Tartu, Estonia, simple contactless payments (model 1) have been in use since 2020. In 2021, an additional option was introduced: Apple Express Mode, allowing iPhone users to buy tickets even when their device runs out of battery.
The next step was to enhance convenience and encourage public transport use. Travelers want to use their bank cards, mobile phones, or smartwatches as tickets, replacing paper and traditional transport cards.
In 2025, Ridango upgraded the system to support the use of bankcards as period passes:
- Fully automated identification of passenger entitlements during card personalization
- Bank card personalization for use as a ticket media in public transit
- The ability to purchase tickets on a bank card via e-commerce channels
- Use of the bank card as a period pass with existing validators
- Interoperability between physical and digital card versions, preventing fraud. Passengers can use their physical bank card or the same card on their phone/watch, ensuring a seamless and secure travel experience.
What Cities are gaining using bank cards as period passes?
Cities that choose Model 3 can expect several improvements:
- Higher passenger convenience and customer satisfaction
- With Model 3, there’s no need for a dedicated transit app. Passengers simply use Google Pay or Apple Wallet, making travel easier without extra downloads
- Increased efficiency of public transport ticketing operations
- Significantly lower environmental footprint due to elimination of plastic travel cards as ticket carriers
What Would It Take to Launch Model 3?
While Model 3 isn’t yet common, Tartu was the first city in the Nordics to launch it. The experience there proves the model works — making travel easier and encouraging more people to use public transport.
To adopt this approach, a city needs a modern fare collection system that can handle contactless bank card payments. Ridango provides both, backed by proven experience and technology that scales with demand.
Do you want to change or upgrade your current solution? Let us guide your transition from end to end.
