Metroblox’s Shared Loop: Could the Next Tap Save Transit Agencies Millions?
Open-loop payments have made public transit easier to use. Riders can tap a credit card, debit card, phone, or wearable without purchasing a separate transit card.
At APTA TRANSform in Chicago, Metroblox is introducing Shared Loop—a new approach to transit payments that could save agencies millions in transaction fees while keeping tap-and-go simple for riders.
The opportunity begins with a question: How much of an agency’s fare revenue goes toward collecting it?
Small Fares. Significant Costs.
Transit combines small fares with high transaction volumes. Processing fees can include both fixed charges and percentage-based costs. On a $2.50 fare, those charges matter—especially when repeated millions of times.
Modern open-loop systems already improve payment efficiency through fare aggregation, combining multiple trips made with the same payment credential into a single charge.
But aggregation does not eliminate processing fees. Across a large network, the cost of collecting fare revenue can still be substantial.
Shared Loop is being designed to help agencies explore another way to improve those economics.
What Is Shared Loop?
Shared Loop is a financial infrastructure layer from Metroblox that brings together payments, mobility identity, rider credentials, rewards, and settlement.
It is being designed to complement existing fare collection systems, allowing agencies to evaluate and introduce new capabilities incrementally.
The goal is straightforward: Keep paying for transit simple while reducing the cost of moving fare revenue from riders to operators.
What Could a 90% Reduction in Processing Fees Mean?
Consider one million paid rides at an average fare of $2.50. That represents $2.5 million in fare revenue.
At an illustrative processing rate of 3%, an agency would pay $75,000 in processing fees.
A 90% reduction in those fees would lower the effective rate to 0.3%, bringing the cost down to $7,500 and saving $67,500.
Across a larger network, the potential impact grows:
| Eligible annual payment volume | Processing fees at 3% | Fees after a 90% reduction | Illustrative annual savings |
|---|---|---|---|
| $100 million | $3 million | $300,000 | $2.7 million |
| $300 million | $9 million | $900,000 | $8.1 million |
Agencies paying more than 3% could save even more with the same 90% reduction.
These figures illustrate a scenario using a 3% starting rate and a 90% reduction in processing fees. They are not verified Shared Loop results or a guarantee of savings.
Actual net savings would depend on each agency’s existing fees, the volume moved to Shared Loop, and the costs of funding, conversion, settlement, implementation, and ongoing operations.
The opportunity is significant: lower payment costs could leave agencies with more fare revenue to support service and the rider experience.
RideUSD: A New Rail Behind the Tap
Shared Loop includes RideUSD, a mobility-focused stablecoin being designed to provide an additional payment and settlement rail alongside existing payment methods.
The intended rider experience remains familiar: Tap & Go.
Behind that tap, Shared Loop aims to give agencies another way to move and settle fare revenue.
The financial case depends on the complete payment flow—from how riders fund their fares to how agencies receive usable funds. A new settlement rail alone does not remove existing card fees. Savings must come from reducing costs across that flow, after accounting for any new expenses.
Agency-specific modeling and pilots will help establish where RideUSD can deliver value.
More Than Payments
Shared Loop is also being designed to support RideID, a portable mobility identity for rider credentials, eligibility, and benefits.
Across participating systems, RideID could make it easier to recognize reduced-fare eligibility and other credentials without requiring riders to establish their status repeatedly.
A shared rewards and incentives layer could help transit agencies, employers, universities, cities, and other partners encourage transit use, off-peak travel, and connections with other sustainable modes.
Together, these capabilities could help agencies improve the rider experience and support ridership while addressing payment costs.
From Open Loop to Shared Loop
Closed-loop fare systems gave agencies control over payments. Open-loop payments expanded convenience and payment choice.
Metroblox believes Shared Loop can build on that progress by connecting payments, identity, benefits, rewards, and settlement through common mobility infrastructure.
Shared Loop is being designed to work alongside existing fare systems. Pilots would give agencies a way to assess integration, rider experience, and financial performance before broader adoption.
What could lower processing fees mean for your agency?
Connect with Metroblox at APTA TRANSform in Chicago, or visit Metroblox.io to discuss your payment environment and explore a Shared Loop pilot.