Bringing Tap-to-Pay Technology to Discounted Fares with Cal-ITP Benefits: A Case Study

For transit technology to truly work, it has to work for everyone. Modern open-loop payment systems are revolutionizing how riders get on board, but until recently, one key group was left behind: reduced-fare riders.

In this case study, we’ll showcase how Compiler, on behalf of Cal-ITP, developed an interoperable, open-source solution for tap-to-pay reduced fares — Cal-ITP Benefits. This technology allows riders to get their reduced fares with a simple online application that is standardized, safe, and secure.

How does it work? Cal-ITP Benefits performs quick digital eligibility checks for riders using existing government tools called application programming interfaces (APIs). Riders can then have their discounts assigned automatically to their contactless bank card of choice. Here’s how we got there.

The challenge: There was no uniform or easy way to verify open-loop discount eligibility for riders and agencies

Motivations for offering discount-fare programs are often rooted in federal grant requirements or local community needs, but verification requirements are universally burdensome. Existing business processes and software systems for confirming eligibility and receiving discounts for reduced fares are time-consuming, costly to operate, and hard to navigate.

Common challenges for riders included:

• Inconvenient in-person appointments
• Paper-based documentation
• Storage of personal data
• Policies that vary by jurisdiction
• Carrying multiple cards and an ID to verify discount
• Showing proof of eligibility to the vehicle operator at every boarding

These barriers, when aggregated, pose a significant obstacle to efficient, easy travel through no fault of a person’s own.

Transit agencies also experience roadblocks when managing enrollment and implementation of reduced fares, such as:

• Limited hours for operating a customer service center, which can negatively affect riders who work during the day
• Significant staff time spent verifying eligibility
• Different procedures for each program
• Security requirements to protect and manage rider’s personal information
• Long lead time for new programs/policy changes
• On-board verification that slows boarding process

Finding a technology solution that could address these issues for both reduced fare riders and transit agencies became paramount for the state of California.

The solution: Building Cal-ITP Benefits from scratch

On behalf of the California Integrated Travel project, Compiler began the research, development, and implementation of a new way for transit agencies to provide reduced fares with tap-to-pay technology: Cal-ITP Benefits.

We were the first partner building in parallel to a governor’s mandate to offer a statewide digital identity tool, and our proof of concept for Cal-ITP Benefits has since been used to support other civic services like CalPrivacy’s DROP and the California Digital Disaster Recovery Center app.

Cal-ITP Benefits is deployed on state-owned infrastructure, which is safer, more secure, and gives agencies greater control when it comes to compliance and security standards. It’s also completely open-source, so agencies aren’t locked into a single vendor, and adaptations and extensions can be added as needed.

Ensuring a rider’s privacy is key to our approach so we designed a solution where sensitive rider data isn’t stored in the application. Instead, we use data already securely stored by state and federal government partners like Login.gov and Medicare.gov.

The outcome: Seamless access to discounted fares and dedicated customer support

Compiler’s work creating Cal-ITP Benefits has transformed accessibility in the transit space, enabling discount fare eligibility to be linked to contactless bank cards. Thanks to this technology, riders automatically receive their correct reduced fares when they tap-to-pay — every time.

Because agencies may not have the capacity to implement new technologies or to change their business processes without assistance, Compiler provides customer support for Cal-ITP Benefits — as well as any product we build — to help make the transition more seamless.

Using the Agile methodology to develop, grow, and continue pivoting

Compiler’s approach to software development uses the Agile methodology, which is a modern project management strategy popular among tech companies that emphasizes flexibility, iteration, collaboration, and continuous delivery. It’s thoughtful, fast-moving, and results in quicker, more cohesive outcomes.

Many government organizations and transit agencies may not be familiar with the Agile approach, as it’s more prevalent in the private sector. Our use of it, however, sets us apart and enables greater predictability and quicker delivery for clients, resulting in stellar customer service and product execution in a field where timelines traditionally can be clunky and slow-moving.

Another key aspect of the Agile approach lies in how swiftly updates and improvements can be made. In a field where policy, laws, and administrative requirements are a key constraint, being Agile means being nimble when needed, resulting in a streamlined work output that focuses on what needs to be done next to best serve customers.

Results from 5 years of implementation of Cal-ITP Benefits

Since launching in 2022, the Cal-ITP Benefits app has expanded to nine participating transit agencies and has supported over 15,000 contactless reduced fare transactions. Another eleven agencies are expected to onboard in the next six months alone, as contactless tap-to-pay continues to grow in adoption throughout the state of California.

Some of the positive benefits of using contactless, open-loop payments for both agencies and riders include:

• Faster boarding times
• Paying for transit the same way as other everyday purchases
• One less card for riders to carry
• Less money locked up on agency transit cards
• Lower maintenance costs than bespoke, closed-loop systems — including expensive cash fare collection systems.

Making reduced fare rides more accessible is just one of countless ways that we can all work together to make transit better for everyone. And behind every transit program are human beings trying to serve their community. At Compiler, our expertise is making government tech solutions easy to use and accessible for all.

About Compiler

Compiler is a woman-owned software consultancy built by people who use and rely on public systems every day. We partner with government agencies and mission-driven organizations to design, build, and sustain digital services that work better for everyone. Our team combines human-centered design, data expertise, and modern engineering practices to help agencies deliver accessible, maintainable, and equitable digital tools.

If you’d like to learn more about Compiler’s work on Cal-ITP Benefits or partner with us on a new project, we’d love to talk. Email [email protected] to get started.