TRANSPORT PAYMENTS SOUTH ASIA Common Mobility Ticketing for Smart Cities

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1 8.15 Registration Day One: Thursday 23 February 2017 INTRODUCTION Welcome to the Forum 9.15 APSCA Introduction Introduction to APSCA and Transport Payments South Asia objectives and theme. Greg Pote, Chairman, APSCA APSCA India Update introduction to APSCA India, APSCA India members update, APSCA India events Abhijit Sengupta, Country Director, APSCA India SESSION One city - one card transport ticketing Transport Payments for Smart Cities Urban mobility and smart integrated intermodal ticketing Smart cities require an efficient and integrated mobility system to satisfy increasing peak demand while meeting environmental targets and promoting a better travel experience. From a public transport perspective this requires integrated ticketing to enable travellers to complete a seamless journey using several public transport modes with a single, easy-to-use, method of cashless payment at the lowest fare. This session explores latest developments in smart integrated intermodal ticketing. What role can smart integrated intermodal ticketing play in increasing ridership levels on public transport and making services more attractive to customers? Can integrated ticketing assist with the last mile connectivity problem by facilitating door-to-door seamless multi-modality or is this dependent upon transport network planning? Single journey tickets are the bane of public transport operators - what are some of the strategies for moving customers from single journey to stored value tickets? Which organisations should lead smart integrated ticketing initiatives? Transport operators themselves, their transport authorities or third-party organisations? Prashant Rao, Executive Director, Signal and Telecommunications/Project (I) Delhi Metro Rail Corporation [~20min] Mahendra Kumar, Director (Rolling Stock & System) Lucknow Metro Rail Corporation [~20min] SESSION Refreshments Integrating buses into smart ticketing schemes Bus Transit Systems & Integrated Ticketing Transport payments for the dominant public transport mode Buses make up over 90% of public transport in most Indian cities and are among the most heavily used in the world with revenue collection almost entirely cash-based. Efficient bus systems meet the need for flexible, medium capacity systems that go close to homes and destinations. Properly implemented Bus Rapid Transit (BRT) systems can exceed the efficiency of metro rail systems with far greater sustainability. This session explores how bus transit systems should adopt integrated ticketing systems. How can bus public transport operators in India afford to implement smart integrated ticketing systems? Where is the business case and should it be supplemented by transport policy? Is smart integrated ticketing for buses really only feasible for services that can benefit from the resources of a larger multi-modal transport systems (i.e. not owned by a single operator)? How should bus public transport be effectively integrated and connected with other urban transit systems to create smart integrated ticketing schemes across multi-modal transport systems? For customers who are unable to afford prepaid transport card products what single journey fare media options are available for multi-modal transport systems to support integrated ticketing? Sandeep Raizada, OSD Noida Metro Rail Corporation [~20min] Manish Kumar, Head - Information Technology Delhi Integrated Multi-Modal Transit Systems (DIMTS) [~20min] Sudesh Kumar, Sustainable Urban Transport Team Leader Mott MacDonald [~20min] APSCA India 2017 Page 1 of 6

2 Day One: Thursday 23 February 2017 SESSION Discussions: Challenges for implementing smart integrated ticketing [~30min] Integrated ticketing requires technical interoperability of the mechanism of payment between intermodal transport services but the primary challenge to deployment is organisational. A high level of cooperation and coordination is required between transport operators and their (usually) different ticketing schemes to specify, implement, operate and expand schemes, in order to ensure that a common method of payment is fully and comprehensively integrated and supported by the different operators of the various modes. This can involve revising ticketing processes and procedures, fare structures and zones, their policies and customer services. In this session experts discuss the challenges they see for implementing smart integrated intermodal ticketing in India. Prashant Rao, Delhi Metro Rail Corporation Mahendra Kumar, Lucknow Metro Rail Corporation Sandeep Raizada, Noida Metro Rail Corporation Manish Kumar, Delhi Integrated Multi-Modal Transit Systems Sudesh Kumar, Mott MacDonald Greg Pote, APSCA Lunch Third-party transport revenue collectors Managed Service Providers Outsourcing transport revenue collection and integrated ticketing An important decision for transport authorities and operators is whether to operate their own revenue management systems or to outsource them to a service provider. The business case for outsourcing revenue management might be determined by the need for transport operators to collaborate in smart integrated ticketing schemes for intermodal transport services. This session explores the role and responsibilities of service providers, what types of organisations are best placed to act as managed service providers, the possible business models for outsourcing transport revenue collection and how they can support delivery of integrated ticketing schemes. Outsourcing transport revenue collection has created some of Asia s most successful smart integrated ticketing schemes - what skills and capacities do these organisations have in common? What are some of the typical business models used by third-party transport revenue collectors? How do they vary in terms of clearing transport transactions, retail payment transactions, card issuing etc? Managing transport revenue on behalf of multiple PTOs, while satisfying the PTOs, regulators and the public is a significant task. What are some of the challenges involved? The successful closed-loop e-payment companies that collect revenue for PTOs are more aggressive, more flexible and subject to lighter regulation - how will banks manage in the same situation? Sudipta Roy, General Manager & Group Business Head - Consumer Cards ICICI Bank [~20min] George Trelawney, President & Director of Delivery AGS Transact [~20min] Discussions: How service providers can support integrated ticketing [~30min] The goal of integrated ticketing is a single transport ticket valid on systems run by more than one operator, for more than one mode of public transport and ideally, for all transport services in a city or region. Asia s successful smart integrated ticketing schemes (Hong Kong, Seoul, Bangkok, Singapore, etc) established separate revenue collection organisations to manage the specification, implementation and operation of transport ticketing schemes that integrate multiple transport operators and their different fare systems. Should transport authorities in India and South Asia adopt this model to outsource smart integrated ticketing to third parties and should they be systems integrators, financial institutions or other organisations? Sudipta Roy, ICICI Bank George Trelawney, AGS Transact Greg Pote, APSCA Refreshments APSCA India 2017 Page 2 of 6

3 Day One: Thursday 23 February 2017 SESSION Anytime, anywhere ticketing services Mobile Transport Ticketing Opportunities to enhance and simplify transit payments Mobile transport ticketing offers potential solutions to a range of challenges faced by transport authorities including ticket sales, reloading and top up; single journey tickets; the overhead of fare media; the impact of India s demonetisation as well as delivering information, schedules and timetables to passengers. This session explores the potential for mobile transport ticketing in what may be the world s fastest growing smart phone market 1 and how this can support smart integrated ticketing. Based on projected smartphone versus feature phone shipments, usage and demographics what types of mobile transport ticketing services can feasibly be launched in India today? What are the technology challenges for implementing mobile transport ticketing projects? Do they include mobile NFC payments, QR code-payments or other types of mobile payments? The impact of the Indian government s demonetisation has driven some transport authorities to adopt use of mobile wallets 2 for purchasing and validating tickets - what have been the results so far? How can mobile transport ticketing support the development of smart integrated intermodal ticketing across different operators and rail and bus transport services? Patrick Henzen, CEO Silverleap Technology [~20min] Prathap Madhav, Development Manager Bytemark India [~20min] Dr. Ashwani Kumar, General Manager, Centre for Railway Information Systems (CRIS) Ministry of Railways [~20min] Discussions: The role of mobile in smart integrated ticketing [~30min] In what ways can mobile ticketing offer an improved customer experience over the already frictionless simplicity of a contactless transport card in AFC systems? Using NFC smart phones to top up the balance of contactless transport cards is becoming more popular. As is the use of mobile devices to purchase single journey tickets. But despite the launch of numerous mobile OEM-pay products the use of smartphones to pay at gate/validator is less common. So what is the role of mobile devices in today s smart integrated ticketing schemes for multi-modal transport services? Does mobile ticketing offer efficient value and convenience to be widely adopted for transport revenue collection? Patrick Henzen, Silverleap Technology Prathap Madhav, Bytemark India Dr. Ashwani Kumar, Ministry of Railways Greg Pote, APSCA Close of day one APSCA India 2017 Page 3 of 6

4 Day Two: Friday 24 February Introduction to day two Introduction to agenda for day 2, session objectives and roundtable discussions. Greg Pote, Chairman, APSCA SESSION Understanding new options for ticketing Open-Loop Payments in Transit New approaches for transport payments, fare products and ticketing architectures EMV specifications have been proposed 3 as a solution to achieving interoperability in transit ticketing infrastructures (this is about interoperability). EMV contactless payment cards are also proposed as a new approach to transit revenue collection, fare payment products and the way that ticketing transactions are processed (this is about open-loop transport payments). Both are often confused with account-based ticketing (which would also be possible with closed-loop payment cards). This session will explain the benefits that financial payment schemes and EMV contactless financial payment cards can offer to transport operators in India and South Asia. For transport operators not looking to outsource their transport revenue collection to third parties, what is the business case for accepting EMV contactless financial payment cards for transit payments? Will EMV open-loop ticketing be feasible for bus operators with ticket readers and validators that are off-line and whose customer base includes few EMV contactless payment cardholders? In the typical Asian transport ticketing model, with non-farebox revenue from contactless transport cards that benefits transport operators, will EMV contactless payment cards be seen as competition? Are EMV contactless cards able to manage the stringent transaction time requirements of transit gates and the often complex fare structures of transit ticketing schemes in Asia? EMV contactless payment cards look like the best approach to handling itinerant riders, business travellers and tourists but what about unbanked customers? 3 Speaker to be advised National Payment Corporation of India [~20min] Manoj Sugathan, Senior Director, Chip, Contactless & Transit Solutions Visa [~20min] Debarshi Dutta, Business Leader - Government Services & Solutions, South Asia MasterCard [~20min] Discussions: Account-based vs. card-centric ticketing [~30min] There is a growing operator interest in the potential benefits of generic account-based transport ticketing systems versus the distributed card-centric (often termed PAYG) systems that have driven contactless AFC to date. Is this driven by desire to simplify cost and complexity of maintaining frontend devices by moving gate intelligence back into the network? Or is it that locating business rules in flexible and scalable back-office systems provides easier management of a range of innovative fare media? Centrally stored customer fare products in cloud-based transit accounts would enable pricing and fare structures to be modified in response to network load. But will cloud-based transactions with network latency match the speed of transactions at the gate? Will a shift from frontend to back-end solve all the complexities of the card-centric ticketing model? Speaker to be advised, National Payment Corporation of India Manoj Sugathan, Visa Debarshi Dutta, MasterCard Greg Pote APSCA Refreshments APSCA India 2017 Page 4 of 6

5 Day Two: Friday 24 February 2017 SESSION Transport payments for all potential use cases Closed-Loop and Open-Loop Ticketing Delivering optimal transport payments services for customers and operators Today closed-loop contactless payment cards are still the most widely used payment method in transport automated fare collection (AFC) systems, underpinning the success of efficient and cost-effective revenue collection in thousands of transport payments schemes around the world. They are popular with customers for both transport payments and (in Asia-Pacific only) for consumer retail payments. In the transport ticketing scheme for which openloop ticketing is most famous (TfL) the majority of transactions are still made with closed-loop contactless payment cards. But London has clearly demonstrated the advantages of adding EMV-based open-loop transport payments into a closed-loop transport ticketing scheme. This session explores how closed-loop and open-loop transport ticketing complement each other and why both are likely to be a part of transport ticketing in the future. What are some of the business challenges that are likely to dissuade transport operators from entirely migrating their closed-loop transport card schemes to open-loop ticketing? A weakness of closed-loop transport card schemes has been solving the single journey problem of itinerant travellers - are there any cost-effective and efficient solutions to this today? What types of mobile transport payments technologies and services can be launched in transit AFC schemes that include both closed-loop and open-loop transport ticketing systems? Data from transport ticketing transactions can provide valuable information to operators, partners and customers - will this be available in open-loop ticketing schemes based on bank payment cards? Will the growing interest in account-based ticketing, where ticket data and rights to travel are not stored on transport cards, reduce the need for operators to issue their own transport cards? Andre Perchthaler, Manager, Global Alliances NXP Semiconductors [~20min] Praveen Sachwani, Director - Engineering Verifone[~20min] Anupam Bagchi, Head, Cards & Unsecured Lending Standard Chartered Bank [~20min] Discussions: Evaluating closed vs. open-loop transport payments [~30min] Is there a right and a wrong choice here? Are closed-loop and open-loop transport payments systems mutually exclusive? There are many completely closed-loop transport ticketing schemes today but how many would benefit from the addition of open-loop payments to solve some of their challenges? There are no large-scale completely open-loop transport ticketing schemes today - are they likely to be any in the near future? As there need to be ticketing products for unbanked customers in any transport payments scheme, will these be better served with proprietary closed-loop contactless cards or with EMV-based contactless financial prepaid cards? In this discussion experts from operators and solutions providers offer their perspectives on these decisions. Andre Perchthaler, NXP Semiconductors Praveen Sachwani, Verifone Anupam Bagchi, Standard Chartered Bank Greg Pote APSCA Lunch SESSION 7 Roundtable Discussions Sharing and feedback on key issues In this session all forum delegates will have the opportunity to participate in 2 roundtable discussions lasting 20min each, chosen from the list of 3 proposed roundtables below. Each roundtable discussion will be assisted by experts who will facilitate (but not lead) the roundtable. The goal is to get everyone involved and participating in each roundtable discussion so that all participants benefit. 1 - What are best practices for successfully implementing smart integrated intermodal transport ticketing? 2 - What are the technology options for integrating mobile-based services into transport ticketing schemes? 3 - What are the differences between open versus closed-loop payments and account-based ticketing? APSCA India 2017 Page 5 of 6

6 15.00 Refreshments Day Two: Friday 24 February 2017 SESSION Developing a collaborative approach Common Mobility for Smart Cities vs. National Interoperability Developing a feasible approach to smart integrated intermodal ticketing This session brings together stakeholders in the transport payments ecosystem in an open discussion on how stakeholders can work together to develop smart integrated intermodal ticketing in smart cities in India. The discussion will contrast and compare smart integrated intermodal ticketing for smart cities with national interoperability for transport ticketing. This session aims to clarify thinking on both subjects by addressing business and technology questions including but not limited to those listed below. Some of the following questions were taken from a 2012 EU study on Integrated Ticketing on Long-Distance Passenger Transport Services What are the technology and/or business options or requirements for implementing national interoperable smart transport ticketing? Are operators willing to be bound by such requirements? Would operators be willing to conform to nationally agreed fare structures and policies if they were an indirect requirement of national interoperable smart transport ticketing? Over how large an area should ticketing be integrated? Should smart integrated intermodal ticketing extend between cities, between regions and even over longer distances across country? If integrated intermodal ticketing extends outside the operating region of a transport authority then how will clearing and settlement work and how will revenues be shared between operators? What are the advantages of nationwide interoperable transport ticketing for operators of municipal and state transport ticketing schemes? Will any such advantages justify the implementation costs? What are the potential benefits of national interoperable transport ticketing for customers and are they significant? Are the potential benefits likely to outweigh the implementation costs? Michael Walters, Founder & CEO Littlepay [~20min] Sujith Nair, Leader, Smart Transport Advisory Ernst & Young [~20min] Discussions: Appropriate strategies for transport ticketing schemes [~30min] What is the right strategy for a transport ticketing scheme? Is national interoperability a business requirement for your customers? Is closed-loop or open-loop transport ticketing the right way to go or does it depend on the business requirements of your transport scheme? Are closed-loop and openloop transport ticketing mutually exclusive? Supporting EMV-based open-loop payments has clear benefits for serving itinerant travellers (and this is a form of interoperability). But single journey customers may be visitors to India with international EMV cards. Mobile transport ticketing can also solve the single journey problem for closed open-loop or open-loop payments? This discussion explores all the options to assist transport operators in deciding the best strategy for delivering smart integrated intermodal ticketing schemes for smart cities. Michael Walters, Littlepay Sujith Nair, Ernst & Young Greg Pote APSCA CLOSE Wrap-up and Next Steps Closing remarks Take-aways from the conference and next steps for transport ticketing in India Next APSCA India event Greg Pote, Chairman, APSCA APSCA India 2017 Page 6 of 6