Smart Toll Collection System with Dynamic Pricing Using IoT and RFID Technology

Abstract— The increasing vehicular traffic in urban areas has made traditional toll collection systems inefficient, leading to prolonged waiting times, fuel wastage, and environmental pollution. This paper presents an IoT-based Smart Toll Collection System with Dynamic Pricing, integrating RFID technology, cloud computing, and real-time traffic analytics to automate toll transactions and optimize traffic flow. The proposed system eliminates manual toll collection using RFID tags for vehicle identification and implements dynamic pricing based on traffic density, time of day, and vehicle type. A prototype was developed using Arduino, RFID sensors, and a Wi-Fi module, demonstrating significantly reduced processing times per vehicle and high detection accuracy. Dynamic pricing algorithms adjust toll rates in real time, effectively mitigating congestion during peak hours. The system also incorporates a centralized cloud database for transaction transparency and fraud prevention. Experimental results validate the efficiency, scalability, and cost-effectiveness of the proposed model, making it a viable solution for modern smart cities. Index Terms— Keywords: IoT, RFID, dynamic pricing, traffic management, smart toll system, cloud computing