With 88% of transit agencies planning to deploy contactless ticketing within two years, cities like Dubai, Riyadh, and Doha are leading the charge toward open-loop fare collection
A quiet revolution is unfolding across the Middle East’s transport networks. Gone are the days of fumbling for cash or queuing at ticket machines. Instead, commuters are increasingly tapping their way through metro gates, boarding buses with a wave of their smartphones, and using digital wallets to pay for their daily commutes. Contactless and open-loop ticketing systems are becoming the new standard, marking a significant shift in how transit agencies manage fare collection.
The transition to seamless, digital ticketing solutions is part of a broader strategy to modernise urban mobility and enhance the passenger experience. According to HID’s Mass Transit Ticketing Hardware Report 2025, 43% of transit agencies globally plan to implement contactless ticketing systems within the next five years, and an impressive 88% of those have set their sights on deploying these technologies within the next two years. This rapid adoption signals a fundamental change in how transportation providers and city planners envision the future of public transit.
In the Middle East, the demand for frictionless and efficient transit experiences is driving authorities to rethink traditional fare collection. Governments and transport agencies are leading the charge, integrating contactless payments into broader smart city initiatives and ensuring that their transit networks remain at the forefront of technological innovation.
Why open-loop ticketing is changing the game
The global move toward contactless payments is shaping the future of urban mobility, and at the centre of this shift is open-loop ticketing. Unlike closed-loop systems that require proprietary transit cards, open-loop technology allows passengers to use their everyday contactless debit or credit cards, mobile wallets, or wearables to pay for their rides. This eliminates the need for dedicated fare cards, reducing infrastructure costs for transit operators and simplifying the experience for commuters.
For cities like Dubai, Riyadh, and Doha, this approach is not only about convenience but also about future-proofing their transit systems. By embracing open-loop solutions, transport agencies are ensuring their networks remain adaptable, scalable, and compatible with evolving payment technologies. The benefits extend beyond ease of payment—operators gain access to detailed ridership data, enabling them to optimise services, streamline operations, and make data-driven decisions about urban mobility.
This evolution aligns with the Middle East’s broader push toward cashless economies. Saudi Arabia’s Vision 2030 and the UAE’s smart city agenda strongly emphasise reducing cash transactions and increasing financial inclusion. Open-loop ticketing supports these national objectives while simultaneously making public transport more accessible and efficient.
Regional leaders driving the contactless shift
Cities across the Middle East are making significant strides in implementing smart ticketing solutions. Dubai, a leader in transport innovation, has been gradually transitioning its transit system from the Nol card to contactless and open-loop EMV payments. The Roads and Transport Authority (RTA) has already begun integrating fare payments into mobile wallets, allowing passengers to tap their smartphones or wearables to access metro stations, buses, and trams. By leveraging partnerships with banks and fintech firms, the city is making transit payments as seamless as everyday retail transactions.
With its expanding metro and bus network, Riyadh is also embracing digital payments. The city’s ambitious public transport expansion includes the introduction of tap-and-go ticketing, reducing the reliance on traditional fare collection methods. This move is part of a broader effort to modernise Saudi Arabia’s transportation infrastructure and encourage more residents to choose public transit over private vehicles.
Doha is similarly pushing forward with contactless solutions, driven by the need to enhance its public transport services ahead of future global events. The integration of EMV-based payments into its metro and bus system is expected to simplify fare collection and improve commuter experiences, positioning Qatar as a regional leader in transit innovation.
Challenges to widespread adoption
Despite the momentum behind contactless ticketing, challenges remain. According to the report, the biggest obstacle to upgrading ticketing hardware is funding, with 24% of transit agencies citing budget constraints as a key concern. Upgrading infrastructure to support contactless and open-loop payments requires significant investment, and while governments in the Middle East are allocating substantial budgets toward digital transformation, securing funding for transit-specific upgrades remains a challenge.
Integration with legacy systems presents another hurdle. Many transit agencies still rely on proprietary ticketing solutions, and transitioning to a fully interoperable, open-loop system can be complex. Ensuring that new systems work seamlessly with existing fare collection infrastructure requires careful planning and execution.
Passenger adoption is also a consideration. While digital payment solutions are becoming more common, some commuters—particularly in cash-heavy markets—may be hesitant to shift away from traditional payment methods. Encouraging widespread adoption will require public awareness campaigns, incentives for digital payments, and assurance that contactless transactions are secure and reliable.
Cybersecurity concerns further complicate implementation. As transit agencies collect and process vast amounts of payment and ridership data, ensuring robust security measures to protect against fraud and data breaches will be crucial in building public trust and maintaining system integrity.
What’s next for Middle Eastern transit?
Despite these challenges, the Middle East’s shift toward contactless and open-loop ticketing is irreversible. Governments and transport agencies are prioritising smart mobility solutions, and as digital payment adoption grows, transit fare collection will continue to evolve.
The future holds exciting possibilities beyond contactless payments. Biometric ticketing, AI-powered predictive pricing, and blockchain-based fare collection systems are all emerging trends that could further transform urban mobility. Facial recognition payments, for instance, are already being tested in cities worldwide, offering the potential for truly frictionless transit experiences.
For now, the focus remains on ensuring a seamless, interoperable, and accessible ticketing ecosystem. As more Middle Eastern cities deploy open-loop EMV systems and integrate transit payments with everyday banking, public transport will become not only more convenient but also more attractive to residents and visitors alike.
With the right balance of investment, technology, and strategic partnerships, the region is well on its way to becoming a global leader in smart transit solutions. The days of paper tickets and cash payments are fading fast—the Middle East’s mass transit systems are stepping into the future, one tap at a time.
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Autor(en)/Author(s): Ryan Harmon
Quelle/Source: Logistics Middle East, 19.03.2025
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