Challenges in Creating a Single Transportation Payment Account APTA Revenue Management and Fare Collection Summit Orlando, March 2015

Transcription

1 Challenges in Creating a Single Transportation Payment Account APTA Revenue Management and Fare Collection Summit Orlando, March 2015

2 Vision for a single integrated transportation payment medium has existed since the early 90s 2

3 The entire transportation ecosystem evolved from cash based processes Cash Stored Value Credit Debit Cash Stored Value: Magnetic stripe Contactless Cards Account Contactless Credit/Debit Agency issued media Identity Card Cash Stored Value Account Transponder Video GPS Technology limitations dictated the media to be used at point of sale (the device level) 3

4 The ingredients for an integrated single transportation account are in place today San Francisco SF Park Golden Gate Ferry BART Washington DC EZ Pass Metro Parking DC New York City EzPass NY Subway NY Taxi the most important critical factor to making the vision a reality is the will to make it happen 4

5 The challenges to be address are in two areas Agreement complexity Procurement Technology solutions 5

6 Getting an agreement in place between the service providers is the single biggest challenge Experience of regional Contactless Smart Card fare payment programs Accommodate all fare policies and rules between participants Fear for lose of control over revenue Organizational cultural differences between modes of transportation any agreement should be simple at the being, then increase in complexity over time 6

7 Procurement Structure drives the outcome of the project Traditionally, procurements are equipment and device centric across all services Equipment is the largest percentage of the price (60 90%) Easy to game the price Bundling systems and customer service center operations has produced under whelming results Limits competition Generally, equipment or systems vender is the prime CSC operations makes up the largest percentage of the price (80 95%) 7

8 Back office systems should drive the project Bundling systems and services, one throat to choke, has been successful in many industries Back office system drives the economics of a program Long term innovation Integration with new partners Call center staffing levels Contracting lifecycle and systems replacement lifecycle are out of sync System: 3 5 years Customer Services: 6 10 years Devices and Boxes: years 8

9 Customers want to use their mobile phones to conduct business Ownership of the customer Access to data Payment landscape is becoming more complex Contactless EMV PCI will not go away 9

10 A single integrated transportation account facilities better management of scarce resources Mine! No mine! No mine! No mine! Use Data to influence customer behavior Congestion pricing Highway Parking Transit Plenty of opportunities exist Clipper FasTrak Joe & Jane Customer 10

11 Technology is NOT an impediment to creating a single multi-modal transport account Portugal Single tolling account with Via Verde = Governance Simple interagency agreements to start Procurements Restructure to increase competition and improve outcome you don t own the customer, customers have more choices 11