MTS Is Losing Money Because of its Pronto Pay System

When San Diego’s Metropolitan Transit System launched a new digital ticketing app called Pronto, its leaders promised riding transit would be easier than ever before.

“Signing up for a transit pass in San Diego is anything but PRONTO,” read a Sept. 19 tweet from Connor Proctor, with Ride SD, a transit advocacy group. That was a little over a year after Pronto first took over ticketing at MTS and North County Transit District.

“It took me 191 clicks to sign up and load money into the Pronto App. It took 13 clicks to sign up and pay for Uber,” Proctor tweeted.

Proctor’s tweet struck a chord, garnering 245 likes and comments from other riders who also struggled to use the new app.

Branded in bright purple, Pronto works like this: riders download an app, load money via a debit or credit card and then scan a QR code at ticket validators on buses or trolley platforms. That, or riders can purchase a physical, plastic card at ticket machines, payday loan stores or ordered and sent through the mail. Pronto was supposed to be an improvement over the old Compass Card system launched in 2009, which lacked modern features like pay-as-you-go, which automatically bills riders for the cheapest fare option as they ride.  

But a growing number of passengers say the new Pronto system is user-unfriendly, deterring first-time riders from choosing public transit out of convenience. Problems scanning the QR code often lead riders to simply board without paying, riders say.

Ride SD, started by members of the existing cycling advocacy group called Circulate SD, is pushing MTS to let riders pay by tapping their credit card or Apple Pay to ride the bus or trolley, a feature available in many other transit systems. They sent a letter with over 100 signatures in October asking MTS to add this capability to the ticket validators on buses and trolleys that already allow contactless pay.

“The vast majority of San Diegans don’t currently take public transit and improving the first-time user experience is necessary if we want to encourage more people to shift their trips to public transportation,” the letter reads.

MTS staff took the matter to its executive committee of elected leaders in March for deliberation, where they revealed that, Ride SD’s demands aside, the transit agency is having trouble getting riders to tap or scan their Pronto app at all.

The debate is largely reminiscent of one from seven years ago, when criticism from Circulate San Diego and KPBS that an outdated fare payment system was holding back the region’s transit ambitions.

In January of 2023, passengers took about 3 million trolley trips, but just under 1 million actually validated their ticket and paid. While passengers can load money onto their Pronto account MTS gets paid only when a passenger validates their ticket. MTS estimates it lost about $3 million in farebox revenue in 2022 because people aren’t validating tickets. They expect that figure to double this year.

Before Covid and the launch of Pronto, ticket sales traditionally supported a quarter of the MTS operating budget. In 2022, MTS only collected enough ticket money to pay for 15 percent of expenses.

“(Pronto) is a new behavior. Under Compass, we had validators and we encouraged people to tap but it wasn’t required because they had day or monthly passes so we’d collect that money up front,” Mark Olson, an MTS spokesman said.

But MTS is currently staring down a $51 million deficit in its operating budget for the coming fiscal year. The agency isn’t alone in its budget problems. Transit agencies across the state are facing a financial crisis, and transit advocates are lobbying state officials to rescue them.

Ridership is also down overall since the Covid-19 pandemic, which limited service and upended many passenger commutes permanently.    

In response to Ride SD’s demands, and in an effort to collect money from more by-choice riders, MTS proposed two options for contactless pay by credit card or digital wallet. One option would allow riders to tap for a one-way fare that includes a two-hour transfer at $2.50. The other is to tap for a $6 day pass.

Olson said adding this feature would cost the agency about $1.2 million up front over 10 years, not including other credit card merchant fees. The MTS board will formally take up the issue in June. If MTS gets the green light, it’d still take about a year to launch the open payment system. 

“Part of this goal is aiming to get new riders we don’t have yet, additional tourists and special event attendees that don’t want to wait in line,” said Emily Outlaw, MTS’ chief information officer, during a March MTS meeting. “It’s geared toward them but doesn’t change existing Pronto system.”

San Diego Councilwoman Vivian Moreno voiced concerns that taking such an action would offer all the bells and whistles to one population, while inconveniencing the 400,000 or more regular transit riders that use the Pronto app. 

Pronto, while at times cumbersome, was designed so low-income riders can pay reduced or capped fares. That capability isn’t possible yet through credit card or digital wallet functions, Outlaw explained.