Transit Applications VeriFone. Emrah Guven Business Development Manager South East Europe

Transcription

1 Transit Applications VeriFone Emrah Guven Business Development Manager South East Europe

2 1 Trends 2 New 3 Case 4 Mobile in Transit Applications Payment Solutions Study 1 ; Bank in Transit Case Study 2 ; City Card 2 5 Key Success Factors Learned

3 1 Trends Mobile in Transit Applications Payment 2 Solution 3 3 Case Study 1 ; Bank in Transit 4 Case Study 2 ; City Card 5 Key Success Factors

4 Transportation Projects Globally North America; 13B annual journeys New York City; 8 million passengers a day subway & bus Paris Metro moves 1.4 billion passengers annually (1.9 billion with RER) Three largest mass transit systems (Tokyo, Moscow and New York) move around 7 billion passengers a year equivalent to the worlds population

5 Trends on Transportation After 1990, significant investments in contactless smart card-based AFC systems. Transportation cards create huge revenue Future Investment: with using same system even NFC payment is supported. Closed, Proprietary Transportation Cards Bank Card Payment Cash Contactless cards & readers Tokens Paper tickets MiFare, FeliCa Cell phone payment schemes

6 Some Transportation Hot Projects Slovakia Moldova Slovenia Croatia Romania Bosnia and Herzegovina Serbia Montenegro Kosova Macedonia Bulgaria Turkey Turkey Albania Greece Cyprus Israel

7 Evolution to City Card Result: Transportation Cards City Card Transportation cards evolved into City Cards, now banks issue those Reason; City Cards with payment asset create huge revenue Banks want revenue from transportation & Micropayment City Cards become more doable with the contactless prepaid solutions Micropayment require more secure cards & transactions Revenue Resources; Smart City Cards are Closed Systems and with this feature enables Discount models to be applied to retailers. Card Processor company creates a business model to get discount when the card used in the merchant. Some part of the discount is reflected to card holder when card is a prepaid card. Due to nature of prepaid float rate becomes attractive. Strategy; Sophisticated process to convert card to city applications Micropayment Potential; Payments less than 5$ ; 1.32 trillion $ in USA, 2003

8 1 Trends Mobile in Transit Applications Payment 2 Solution 3 Case Study 1 ; Bank in Transit Key Case Study 2 ; City Card Success Factors

9 New Transportation Solutions & Functions Consultancy Business Analyses System Design Card Mapping & Design Hardware Validator Terminals Credit Loading Terminal Self Service loading Readers Paper Ticket readers Unsurpassed responsiveness and technical expertise to deliver the best combination of technology, products and support to our customers. Software Key Management Backoffice (key turn solution) Terminal Application Card Application Intelligent Reports Deployment Services Top-up (credit loading) Full Service Offering with ticketing and operation management Value Added Applications Switch Center Installation Training

10 Automated Fare Collection Systems

11 Products used in new Mass Transit Payment Ticket Machines Turn Stiles Payment at public transport Taxi Self Service Top-Up PIN Entry Cash@Merchant

12 Taxi ; NewYork & Philadelphia Taxi

13 Problems and issues about bank credit cards Not-on-Us transactions Inter Charges Transaction fee One time Investment BANK 1 BANK 2 OPERATOR Application Manager at Terminal reads card type and determines its issuer Bank 1 card sends to Bank 1 Host Bank 2 card sends to Bank 2 Host MiFare card sends to Closed Systems Paper Ticket reader sends data to related operations center Operations Center gets all transaction details and creates a consolidated endof-day reports, revenue split between the parties NFC Bank Cards SMART AFC SYSTEMS Paper tickets

14 1 Trends Mobile in Transit Applications Payment 2 Solution 3 Case Study 1 ; Bank in Transit Key Case Study 2 ; City Card Success Factors

15 1 First in Europe One of the few in the world The ultimate in contactless payment technology The most advanced card AsyaCard DIT Case : Benefits to a Bank : Bank Asya

16 About Bank Asya 2

17 Growth Strategy in Credit Card Business 4

18 Contactless Card Market in Turkey Contactless payment techonology has been launced in Total number of contactless payment cards AsyaCard DIT % 43 market share Market YearOverYear Growth Rate : 20% Bank Asya rate : 100% Multiplied by 5 the Market Growth! ASYACARD DIT Jul.08 Aug.08 Sept.08 Oct.08 Nov.08 23

19 Benefits for merchants: Convenience: Faster transactions, shorter queues Easy clearance of customer cashbacks Less usage of change Decrease in cost of transations and workload Security: EMV enviroment: Benefit from standart EMV card/terminal autentication and risk management rules Zero liability Protection like traditional payment cards

20 Benefits for customers Shortens the time customer waiting queues No more cash handing Speed of transaction Reliable, no failed read Increased feeling of security Card remains in hands during transaction Easy pass through motorways and highway toll counters with KGS (Toll payment System) Replacement usage ofr tickets in local transaciton facilities (bus, subways, ferry etc. Where applicable)

21 Customers Targeted All customers who use credit card Customers who do not want to carry change in their wallets or pockets for their small transactions Customers with frequent usage of motorways, highways and bridges Customer who use local transportation facilities 6

22 System Components Card POS Reader Validator Vehicle Tracking System Instance Issuing Cap Scripting Software Backoffice & Instant Issuing Software Credit Card Management System Prepaid Card Management System Terminal Management System KGS-Tollway Software Bank Asya Banking System 9

23 Card Started with Native 12K SDA Continues with Java 32K PayWave & PayPass 10

24 Card Chip Structure Contact Interface Contactless Interface Payment Functionality EMV Part Contactless EMV Non- Payment Functionality Loyalty Part Mifare Emulation EMV Part EMV Contact and Contactless Transactions Loyalty Part Transit Data, Loyalty Applications Mifare Part Tollway Payments (KGS) 11

25 Asyacard DIT can be used as ticket in Public Transportation 15

26 AsyaCard DIT has KGS feature which allows easy pass from motorways, highways and bridges

27 1 Trends Mobile in Transit Applications Payment 2 Solution 3 Case Study 1 ; Bank in Transit Key Case Study 2 ; City Card Success Factors

28 City Card 700,000 cards issued in first year, most of them are personalised

29 Erdi goes to the local burger house to have a quick lunch The local burger house, a member of the city card loyalty scheme had previously designed their own reward program. As this is Erdi s 4th visit to them this week, they now instantly offer him a free soft drink!!! AntKart 08 Jan :28 Burger Antalya City Kart no: 99XX Instant Reward 1 Drink Free

30 Merchant Penetration of Project Loyalty Program with Domino s Pizza; Pay with CityCard get the second one free ; Penetration into food payment target is 1B$ food payment annually General Income Model from Food Payment; Merchants & Brands make roughly 15% discount where 5% remains for card operator and 10% to Card Holder

31 Merchant Penetration of Project Merchants started to compete to become a Card loading & Payment point They got more customer in the store; gained commission from loading and payment transaction with the card Merchants started to create special food menu to be paid by City Card

32 1 Trends Mobile in Transit Applications Payment 2 Solution 3 Case Study 1 ; Bank in Transit Key Case Study 2 ; City Card Success Factors

33 Key Success Factors OPERATORS Start with parking lots, take-a-ways, newspaper corners, schools & universities, copy centers, laundries, get in all vending machines and if possible ID cards at the same time Find right technology partners; Lack of single solution source for all hw, applications, integrators High merchant fees effect profitability Know your customer & make loyalty compliments to keep them using card Instant Issue necessary for presonalised cards to know customer Decrease Fraud by moving to digital solutions Get support of legal authority to stop cash but rather card usage Motivate merchants with commission and increase # of people entering to shop BANKS Try to be partner with operators work hybrid Handle the card issue process even if MIFARE Customer behaviour follow up