Unlike open-loop payment gateways, which enable transactions between numerous platforms and merchants, closed-loop wallets are restricted to a specific setting.

A great example of a closed loop system is TfL’s Oyster card, which many customers still choose to use on its network despite the availability of an open loop alternative. Closed loop systems rely on ...

Open-loop systems lack support for more flexible fare structures unless layered with complex eligibility processes or closed-loop add-ons.