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Case study

Transport for New South Wales Sydney Opal Payment System

Redefining fare collection on public transport.

Man sitting on public transportation

The challenge


 

Transport for New South Wales (TfNSW) is tasked with ensuring the safe and efficient running of transportation services for both Sydney’s 5 million residents and 4.3 million annual international visitors. Due to playing a critical role in connecting the people of Sydney, TfNSW has seen major developments in their public transportation services to provide residents, commuters and visitors alike with convenient, easy access across the city’s wide transit services.

The existing ticketing infrastructure was based around a physical card infrastructure, which delivered a poor customer experience and limited its appeal to visiting tourists.

TfNSW needed a solution to reduce road congestion by encouraging more commuters to view public transport as the most efficient way to travel. To achieve this, we needed to remove barriers for both local and inbound commuters to leverage the transportation network by allowing the use of the payment instrument they have on their wallet or phone to pay for transportation services.

The solution


 

TfNSW chose to partner with Mastercard for the introduction of a new payment system that allows commuters to move away from the existing ticketing infrastructure. Open Loop combined with Mastercard’s gateway enabled commuters to pay via contactless Mastercard cards. They could tap on and off Sydney buses, ferries, trains and Light Rail without a ticket and enjoy a standard, peak-time Opal fare without the need for a proprietary transit card.

By recognising Mastercard's leadership in transit, TfNSW and Mastercard were able to work together to receive the functionality they wanted. Mastercard’s gateway offered the acquirer the TfNSW simple API connections to process EMV contactless transactions. Through leveraging Mastercard's innovatory technology, TfNSW deployed the solution in 2017 following a Mastercard led trial on the Manly Ferry route.

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The key takeaways


Security

Advanced technology for fraud prevention with looks like EMV contactless transactions

 

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Value-added services

TfNSW is able to leverage Mastercard innovation investments

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Ongoing investment

TfNSW is able to leverage Mastercard innovation investments

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Simple integration

Implementation via a single API connection

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New business opportunities

Able to stay ahead of evolving digital payments, e.g. use of Tap on Phone

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The results


 

Redefining the TfNSW payments system through a digital innovation partnership with Mastercard, laying the foundations for Sydney’s digital Opal programme and a flexible portfolio of commuter services.

+30m

contactless payments delivered

90-98%

user satisfaction across rail, bus, metro and ferry services

1.5m

contactless transactions per week

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