A system and method in which the Bluetooth technology is used in conjunction with a user application on a mobile device to facilitate hands-free fare validation at a transit station. The user app communicates with a controller driver in a controller unit that interfaces with a compliant fare gate. Bluetooth beacons are used to determine a passenger's proximity to the gate and camera-like devices determine whether a passenger has entered a fare validation zone. A user with a valid and active electronic ticket on their mobile device may simply walk through the fare gate “hands free” without the need to search for a physical ticket or a smartcard or a mobile phone. This hassle-free approach significantly improves the user experience and passenger throughput through fare gates. The Bluetooth-based automated fare validation system also detects passengers with valid electronic tickets and those without a valid permit for travel.