Tracsis has received a multi-year contract from Rail Settlement Plan, a division of Rail Delivery Group, to deploy the Tap Converter system on National Rail.
This system is a central technology for pay-as-you-go (PAYG) travel and is expected to modernise urban rail travel by simplifying ticketing and fare calculations.
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The Tap Converter system will serve as the backbone for PAYG travel in urban areas, aligning with the UK Government’s vision for a modernised rail network with a simplified ticketing system.
Six Train Operating Companies (TOC) on the National Rail network are already utilising Tracsis’ smart ticketing technology.
The new contract opens a long-term revenue stream for Tracsis, with growth anticipated as more TOCs and consumers adopt the system.
The contract guarantees a minimum annual operating fee for Tracsis, with additional revenue potential based on the volume of PAYG transactions processed.
Tracsis CEO Chris Barnes said: “We are delighted to be working with the Rail Delivery Group and Great British Railways Transition Team (GBRTT) to deliver this important pay-as-you-go ticketing solution on a nationwide basis.
“The contract represents a major milestone in our smart ticketing technology journey, with the potential to grow into a valuable, long-term partnership over time.”
The Tap Converter system will process tap data from smartcards, contactless bankcards, and mobile apps, integrating with various transport modes. This will facilitate London-style PAYG ticketing for rail, bus, and tram travel.
Tracsis’ existing technology will be used to calculate the best fares, apply discounts, and manage settlements with the rail industry.
Development of the Tap Converter system has commenced, with deployment and revenue generation slated to begin in 2026.
During this development phase, the six TOCs currently using Tracsis’ technology for PAYG will maintain their services.
Once operational, Tracsis’ revenues from the Tap Converter system will correlate with transaction volumes, influenced by customer adoption rates and system usage.
In 2024, Tracsis processed 2.25 million PAYG journeys. Recent PAYG deployments in Wales and Scotland are expected to boost passenger journeys ahead of the Tap Converter system’s deployment.
In 2022, Tracsis acquired US-based rail technology firm RailComm in a deal valued at up to $14.2m (£10.9m).
