In the world of public transit and government procurement, few things can stall progress faster than a poorly written Request for Proposal (RFP). This is especially true when procuring something as critical—and fast-evolving—as a payment system.
With the pace of innovation in fare collection and account-based ticketing (ABT), agencies can’t afford to issue outdated, inflexible, or overly prescriptive RFPs. Yet, it still happens. A lot.
So how do you avoid writing a payment RFP that leaves you locked into the past for the next half-decade? Let’s dig into the common pitfalls—and what you should do instead.
The High Stakes of Getting It Wrong
A payment RFP isn’t just a procurement document. It’s the blueprint for how your agency will collect revenue, engage riders, and evolve with the mobility ecosystem. A misstep here could result in:
- A system that doesn’t scale with future needs
- Vendor lock-in to proprietary platforms
- Years of costly workarounds and change orders
- Public frustration from poor rider experience
- A delayed or failed launch
In some cases, the consequences are so severe that agencies find themselves issuing a whole new RFP just a few years later—essentially starting from scratch.
Pitfall #1: Writing to Yesterday’s Technology
Too many RFPs still describe legacy systems—stored value smartcards, magnetic stripe fare media, or server-heavy infrastructure—as if these are best practice.
Better approach: Describe your goals, not the tech. Want EMV acceptance? Say that. Want fare capping and mobile wallets? Say that. Let the vendors propose the best solutions to meet those outcomes with modern, scalable architecture.
Pitfall #2: Being Too Prescriptive
Agencies sometimes write RFPs that feel like spec sheets from the 1990s, listing requirements down to how many buttons a validator should have. This prescriptive approach:
- Kills innovation
- Excludes better solutions you might not know exist
- Encourages bidders to conform rather than differentiate
Better approach: Use performance-based specifications. Ask vendors to demonstrate how they meet your service-level needs, not how they replicate your existing system. This encourages creativity and future-proofing.
Pitfall #3: Overlooking Rider-Centric Design
It’s easy to focus on backend functionality, hardware specs, or integrations—but forget about the actual end-user: your riders. Payment systems are front-line experiences. They shape:
- Whether new users can board quickly
- Whether tourists or the unbanked can ride
- Whether a rider ever returns
Better approach: Include user experience evaluation criteria. Require vendors to demonstrate UI/UX principles, customer journey mapping, and accessible design standards—especially if you’re adopting open payments, mobile ticketing, or fare capping.
Pitfall #4: Failing to Future-Proof
Most transit systems plan for systems to operate 10+ years. But a lot changes in 10 years—especially in payments. NFC. Wearables. Wallet-based authentication. AI fraud detection. You name it.
Writing a payment RFP that locks you into 2022-era tech is a surefire way to make your system feel obsolete before it even launches.
Better approach: Make modularity and upgradeability part of the requirements. Ask how the system will support emerging payment types or fare models over time. Use phrases like “support for future standards” or “interoperability with evolving APIs.”
Pitfall #5: Neglecting Integration
A payment system doesn’t live in a vacuum. It touches your:
- Rider app
- CRM or customer service portals
- Financial backend
- Regional fare partners
Agencies often forget to define integration requirements clearly, leading to siloed systems and expensive rework.
Better approach: Define clear integration points and protocols. Require open APIs, data portability, and conformance with standards like GTFS, GTFS-RT, and ISO 9564 (for payments). Ensure vendors explain how they’ll work within a broader mobility-as-a-service (MaaS) ecosystem.
Pitfall #6: Ignoring Change Management and Customer Education
No matter how elegant your new fare system is, riders and staff will need to adapt. RFPs that focus purely on technical delivery without a change management plan are setting themselves up for confusion and complaints.
Better approach: Include stakeholder engagement, training, and communication as part of the scope. Require vendors to propose a change management strategy that includes outreach, signage, customer education, and staff onboarding.
Pitfall #7: Writing in a Vacuum
Far too often, payment RFPs are written by a small internal team—sometimes even a single procurement lead—without involving operations, customer service, IT, marketing, or the rider community. This leads to blind spots and missed opportunities.
Better approach: Co-design your RFP. Involve cross-functional stakeholders early. Engage consultants who specialize in fare systems. Even consider a Request for Information (RFI) first to see what’s out there and inform your strategy.
Bonus Tip: Build in Flexibility for Innovation Pilots
Many modern RFPs include language that allows agencies to pilot emerging technologies—without waiting for a whole new procurement cycle.
Include options for:
- Adding payment methods (e.g., QR, digital ID)
- Expanding to new fare models (e.g., time-of-day pricing)
- Integration with third-party mobility providers
Sample Language You Might Use
Here’s a snippet to get you thinking:
The proposed solution must support account-based ticketing with multi-token authentication, including closed-loop smartcards, mobile wallets (Apple Pay, Google Pay), and EMV contactless bank cards. The system should enable fare capping, cross-agency interoperability, and allow for integration with mobility-as-a-service providers via open APIs. The vendor must demonstrate a roadmap for integrating emerging payment types over a 10-year lifecycle.
Closing Thoughts
A payment system is more than just a way to collect fares—it’s a key part of your customer experience, your financial strategy, and your mobility future. Writing a good RFP sets the tone for the next decade of rider engagement and operational success.
So take the time to get it right. Engage experts. Benchmark other cities. And most importantly, focus on outcomes, not specs.
Because in this space, what you write today determines what your city can do tomorrow.
Need help reviewing or writing your payment RFP?
I specialize in modern fare system strategy, vendor evaluation, and RFP development for transit agencies across North America. Let’s chat about how to make sure your next procurement moves you forward—not backward.
Contact me for a consultation or to request a detailed RFP review.
highstreetconsulting.ca 
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