Migrating to Open Payments

Transcription

1 Customer Services and Operations Committee Board Information Item IV-B October 14, 2010 Migrating to Open Payments Page 16 of 79

2 Washington Metropolitan Area Transit Authority Board Action/Information Summary Action Information MEAD Number: Resolution: Yes No TITLE: Open Payments Initiative PURPOSE: To provide an update to the Board of Directors on Metro`s Open Payments Initiative. The presentation will outline actions taken to date, the strategy for the program and go forward actions required to achieve the program`s goals. DESCRIPTION: Metro is advancing an Open Payments approach to fare payment for its customers. As the first transit agency to adopt contactless smart card technology, time has come to refresh Metro`s fare collection system and provide a broader array of payment alternatives to its customer base. Expansion of these payment alternatives includes adding functionality to today`s SmarTrip card and will include payment using contactless bank cards, federal I.D. cards and other standardsbased media. The architecture for this new system will transition Metro from a single supplier proprietary architecture to an agency-controlled, multi-supplier open architecture. Further, this initiative will integrate open payments into Metro`s Mission Critical Systems. FUNDING IMPACT: Operating impact will be determined as part of the project. RECOMMENDATION: Presentation is for informational purposes only. Page 17 of 79

3 Washington Metropolitan Area Transit Authority Migrating to Open Payments A Strategic Approach Customer Service and Operations Committee October 14, 2010 Page 18 of 79

4 Purpose Update the Board of Directors on Open Payments Initiative - Actions taken to date -Strategy - Go-forward actions Page 19 of 79

5 Today s Challenges Purchasing fares..not customer friendly Customers must conform to transit currency rules SmarTrip cards are not readily available within system Confusing to first time customers, particularly parking Devices, cards, infrastructure nearing end of useful life Faregates/vendors at end of life due to limited availability of spare parts and system components All card readers currently exclusively support GoCard chip technology which is end of life Fragile rail and parking communications infrastructure Fareboxes approaching mid-life overhaul Replacement, rehabilitation and/or supplemental devices required Page 20 of 79

6 How Did We Get Here? Metro was first adopter of contactless smart card technology in transportation field Launched 1999 Cubic was sole supplier of Metro s proprietary fare payment system and associated equipment Integration of new features and equipment within the aging technology platform has proved challenging Page 21 of 79

7 Evolution of Perspective Metro developed an enhanced understanding of open payment from: Discussions with Board and industry experts Initial proposals and discussions Recent advancements in retail, transit fare payment and communications industries Convergence towards account-based systems New York Region/SEPTA/CTA/Ontario Region/UTA On-going NextFare5 Upgrade Page 22 of 79

8 Strategic Goals and Objectives Enable customers to use conveniently available forms of ISO-compliant RF-enabled media to pay for trips Payment Cards - Smart Phones Federal ID Cards - Building Access ID Cards University i ID Cards - Student ID Cards SmarTrip Cards Utilize the enhanced fare payment convenience to reposition Metro with its customers and industry Transition the fare payment system from a single supplier proprietary architecture to agency-controlled multi-supplier open architecture Page 23 of 79

9 Strategy For Today Guiding gprinciple: p Maintain and enhance use of SmarTrip cards; develop new system architecture to allow for other forms of contactless payment Actions this year: Invest in AFC infrastructure to bring to state of good repair Fare gates and parking lot equipment Migrate SmarTrip cards to a new ISO-compliant chip Explore opportunities for limited proof-of-concept test to accept ISO-compliant media Page 24 of 79

10 Strategy For Tomorrow Canceled current procurement Notified parties that new RFP will be issued Key elements: Shift from proprietary card-based application to nonproprietary account-based system Approach will focus on Systems Integration Services and Metro control of all key interfaces Reissuance of procurement documents ensures broader pool of high-level systems integration proposers Leverage existing procurement documents to ensure minimal schedule impact Page 25 of 79

11 Upcoming Actions Prepare functional requirements, associated technical specifications and performance criteria Enhance contract t documents, terms and conditions, innovative financing approaches Issue New RFP December 2010 Goal to award in Summer 2011 Page 26 of 79

12 Next Steps Seek public input on approach through customer focus groups Identify open payment bridging strategies and incorporate pilots to gauge customer acceptance of open payment approaches Design system to achieve seamless transition between legacy fare system and Metro open payment system Page 27 of 79

13 Next Steps Assess how existing and scheduled infrastructure improvements can be leveraged to support roll-outout Determine necessary investment to ensure consistent level of service on legacy system during transition period Work with other transit agencies to form a unified approach on establishing the most favorable debit/credit d transaction processing rates and rules Page 28 of 79