Transportation Payments Briefing

Transcription

1 Burt A. Wilhelm, Vice President Global Transportation Team Business Development March 16, 2009 Transportation Payments Briefing APTA 2009 Fare Collection Workshop

2 Agenda Business Goals of NY Trial Project Scope Trial Learnings So What s Next? Roles and Responsibilities June 28,

3 Business Goals of NY Trial MasterCard Technology test: Card / device and reader technology in a transit environment Minimal integration with existing Legacy system Cardholder experience Consumer acceptability and market take-up Operational feasibility Multiple ticket type support (single ride and value based) Consumer education and marketing Payments vs. Ticketing Can It Work? June 28,

4 Business Goals of NY Trial MTA NYCT Improve customer service, ease of use and access to transportation services Reduce operating costs: lower maintenance costs via contactless technology displace cash / decrease in cash handling minimize the need to issue fare media Ensure interoperability via open standards: leverage widely distributed banking solution as fare media retain float via top-up of transit account Safe and secure technology Available to all rider June 28,

5 Project Scope Who: What: Where: When: 165K Citi credit and debit cardholders 80 turnstiles equipped with contactless payment reader along Lexington Avenue Line and one E and one 7 station in Queens 30 stations across 4 boroughs (Manhattan, Brooklyn, Bronx and Queens) July 5, Consumer Launch July 11, 2006 Press Event Duration: Initially 6 months June 28,

6 Trial Learnings June 28,

7 Trial Learnings Customer Claims Equipment Processing Payment claims rate are identical to the merchant s experience with vending machines Indications are that fraud risk is lower Usage (acceptance) issues at point of entry significantly lower Sales transaction availability very high Very easy to install Verified read of 300ms or less; accuracy of read Highly reliable / stable - significantly less maintenance complexity and frequency No vandalism All usage and sales transactions have been fully reconciled with no accounting issues Loss exposure is potentially much less for MTA as a merchant June 28,

8 Trial Learnings Customer Service and Web Site Web-Site Access Users very satisfied with approach and level of service Customers view problem resolution as a payment issue to be resolved through their existing banking relationship Profile mirrors EZPass experience: - Of the inquiries, most were information requests - Second highest category were transfers to Citi - Few claims inquiries: all handled as part of financial back office process - Very few calls transferred to NYCT for support Web site 100% available: very active Consumers overwhelmingly pleased with ability to Tap (65% of users surveyed spoke favorably of experience) Source: MasterCard Worldwide Research, December 2006 June 28,

9 84% of users want ability to use in entire MTA subway and bus system So What s Next? Source: MasterCard Worldwide Research, December 2006 June 28,

10 Next Steps For MasterCard Deploy Production Solution Final Technology Testing to include: Support of bus operations (advanced cellular communications) Deployment of high-speed telecommunications (fixed locations) Migrate from local hot-listing to host based hot-listing Deploy rapid advanced authorization capabilities via MasterCard T- MIP Introduced new brand rules specific to transit industry: Use of aggregation Chargeback protection for transit merchants Incorporate pre-paid solutions Incorporate acceptance capabilities supporting all payment brands June 28,

11 Going Forward Roles and Responsibilities June 28,

12 Roles of Stakeholders Going Forward Action / Responsibility License Payment Platform specifications to all interested parties Develop to specifications for connectivity to T-MIP Provide high-speed authorization services via MasterCard T-MIP technology Contract with MasterCard for access, use and support of T-MIP Submit all transactions to merchant s Acquirer for clearing and settlement Bill merchant for T-MIP usage (fees based on sales volumes processed via T-MIP) Owner MasterCard Vendor or Merchant MasterCard Merchant Vendor or Merchant Acquirer or Vendor June 28,

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