How Coast RTA Reduced Cash Handling and Simplified Fare Collection By Introducing Contactless Payments

In September 2022, Coast RTA revolutionized the fare payment system of its 41-vehicle bus fleet by introducing contactless payments, becoming the first transit agency outside California to utilize Cal-ITP’s Mobility Marketplace of approved vendors. This upgrade enabled riders to pay for fares efficiently and securely by simply tapping their contactless credit cards, debit cards, or smart devices. Serving two counties in South Carolina, Coast RTA’s initiative was aimed at improving the travel experience for both local workers and tourists.

Objectives

The primary objective of Coast RTA’s initiative was to minimize cash handling and upgrade their fare collection system. By implementing a fast and convenient contactless payment system, they aimed to reduce dwell time, enhance the passenger experience, and integrate fare caps to incentivise more frequent travel. Long-term, Coast RTA aims to transition to a fully cashless fare collection system.

Challenges

Coast RTA faced significant challenges with an outdated fare collection system that relied on magnetic strip cards, coin, and bill validators. This aging infrastructure demanded extensive time and resources to maintain, creating inefficiencies across operations. Additionally, long dwell times at the front of the bus during fare payments slowed down service and impacted overall efficiency. Implementing a closed-loop system was determined to be unviable due to the cost and complexity involved. This led Coast RTA to explore more cost-effective and streamlined open-loop payment solutions that could meet their operational needs while enhancing the passenger experience.

The beauty of open-loop contactless payment is its plug and play efficiencies. With Littlepay and their partners, Coast RTA was able to implement contactless payment in a matter of months for a fraction of the capital cost of a traditional fare collection system. We have reduced cash handling and offered our passengers a quick and efficient way to pay their fare, with the same card they used to buy their coffee.
Brian Piascik
CEO, General Manager

Solutions

Coast RTA partnered with Littlepay to launch a best-in-class contactless fare payment system. Littlepay collaborated with partners Kuba for fare validators and Elavon for acquiring services.The system enabled efficient fare collection and facilitated the introduction of a daily fare cap of $3.50 to encourage increased ridership. Littlepay’s back office managed card validation, authorization, settlement, and fare adjustments in real-time, ensuring smooth and secure transactions.

Results

Coast RTA’s transition to a contactless payment system was completed in just a few months, delivering immediate results. Rider adoption began at 15% and steadily grew to nearly 22% by June 2024, reflecting the system’s success in enhancing both convenience and efficiency. This growth supports Coast RTA’s long-term goal of shifting to a fully cashless fare collection model. The new system also brought significant improvements in fare collection, reducing dwell times and creating a smoother, faster boarding process—ultimately delivering a better experience for passengers.