Fuel your fleet’s success: Open-loop or closed-loop payments?
The fleet & mobility industry is undergoing a significant transformation. With the rise of EV adoption, tightening regulations, and a growing demand for interoperability, businesses managing fleet payments must rethink their approach.
For years, closed-loop payment systems – where fuel and charge cards are restricted to specific networks – were the norm. However, as fleets become more diverse and regulations like the EU’s Alternative Fuels Infrastructure Regulation (AFIR) require interoperability, the industry is shifting toward open-loop payment systems, which allow transactions across multiple fuel stations, EV charging networks, and mobility services. This shift is essential for future scalability and operational efficiency.
This shift is also evident in market trends. The European fuel card market is projected to grow from $4.2bn in 2024 to $5.6bn in 2029, with open-loop systems experiencing the most significant growth—nearly doubling from $375.4m in 2024 to $729.5m in 2029. This surge underscores the increasing demand for flexibility and interoperability in fleet payments.
This transition doesn’t happen overnight. Moving from closed-loop to open-loop payments is a gradual process, and Enfuce is here to help fleet operators and issuers navigate this change with scalable, secure, and future-proof solutions.
Closed-loop vs. open-loop payments: What’s the difference?
Closed-loop payment systems: controlled but restrictive.
A closed-loop payment system is a fleet card or account that is restricted to a specific network of merchants – for example, a fuel company issuing its own fleet card that can only be used at its stations.
Examples: Traditional fuel cards, RFID-based EV charge cards, retail-branded mobility cards.
How It works: A fleet manager provides drivers with a fuel card limited to specific gas stations or an EV charge card valid at a designated charging network.
Advantages:
- Tighter cost control – Fleet operators can restrict spending to specific locations or services.
- Better pricing & loyalty benefits – Companies can offer discounts and rebates within their own network.
- Proven system – Many fleets are already accustomed to this model, making implementation simple.
Challenges:
- Limited acceptance – Cards are not interoperable across multiple fuel stations or charging networks.
- Poor driver experience – Drivers may need multiple cards for different providers, causing inefficiencies.
- Regulatory compliance issues – New regulations require greater interoperability, making closed-loop cards less viable.
Open-loop payment systems: flexible & future-ready.
An open-loop system is a payment method that works across different networks and merchants. These cards, powered by Visa or Mastercard, offer seamless payments across fuel stations, EV charging points, tolls, parking, and mobility services.
Examples: Fleet cards powered by Visa Fleet 2.0, corporate mobility cards, digital wallets linked to transportation services.
How It works: A fleet manager issues an open-loop card that can be used at any fuel station or EV charging point that accepts Visa or Mastercard.
Advantages:
- Universal acceptance – One card covers fuel, EV charging, tolls, and more, reducing admin workload.
- Regulatory compliance – Meets mandates like AFIR, ensuring future-proof payments.
- Advanced spend controls – Fleet managers can set rules on transaction limits, categories, and locations.
- Better data & reporting – Open-loop payments offer detailed transaction insights to optimise fleet spending.
Challenges:
- Higher interchange fees – Some fleet operators worry about transaction costs.
- Security risks – Open networks require strong fraud prevention measures to minimise risks.
Transitioning to open-loop: A step-by-step approach
While the benefits of open-loop payments are clear, many fleet operators still rely on closed-loop systems. The transition doesn’t happen overnight – it’s a step-by-step process requiring strategic planning and the right technology partner. This means ensuring seamless integration with existing operations while maintaining cost efficiency and security.
How Enfuce supports the journey from closed to open-loop
At Enfuce, we understand that fleet operators can’t simply switch from closed-loop to open-loop overnight. Our solutions provide a gradual, secure, and scalable approach to modernisation:
- Hybrid payment models – Enfuce enables a combination of closed-loop and open-loop functionality to support fleets as they transition gradually.
- Seamless migration – Our cloud-based platform ensures a smooth migration without disrupting fleet operations or customer experience.
- Advanced spend controls – Fleet managers can restrict spending on fuel, EV charging, tolls, and parking, ensuring cost efficiency and fraud prevention.
- Regulatory compliance – Enfuce solutions align with AFIR requirements, ensuring full compliance with open-loop mandates.
- Interoperability without complexity – Our Visa Fleet 2.0 enabled cards allow fleets to manage payments effortlessly across fuel stations, EV charge points, and mobility services.
Future-proofing fleet payments with Enfuce
As fleet & mobility payments evolve, the transition to open-loop systems is inevitable. However, this shift doesn’t have to be sudden or disruptive. The right approach ensures a balance between innovation and operational stability.
At Enfuce, we provide a flexible, future-proof approach, helping fleet operators gradually transition from closed-loop to open-loop while maintaining security, compliance, and cost control.
Want to take the next step? Learn how Enfuce’s open-loop and hybrid payment solutions can simplify your fleet payments, enhance security, and future-proof your business. Get in touch today!
