Open Payment Systems and Fare Collection

Transcription

1 Open Payment Systems and Fare Collection 2010 Fare Collection Workshop Michael Nash ACS 2010

2 Evolution of Transit Fare Payment Open Banking Coins Tokens Flash Passes Magnetic Stripe Smart Cards (closed) Contactless (open) NFC Payments NOT Ticketing Source: Greg Garback: WMATA Presentation CTST 2007

3 The Merchant Approach ACCOUNT BASED SYSTEM Cards are registered into the system by use or customer choice

4 Atlas on Line Delivers the Merchant Approach Phone SMS IVR Customer Care NFC Internet Customers Contactless Credit, debit, prepaid cards Open Standard Contactless Devices Transit Agency Subway Ferry Bus Web Server Communication Networks (EVDO) Agency Account $ Atlas on Line Payment Platform Account Management Fare Payment Data Communications & Authorizations Reconciliation Management & Transit Reports Issuing Banks Acquiring Bank Payment Processing/ Aggregation MasterCard, Visa, AMEX Slide 4Slide 4

5 NYC Transit Trial Customer Experience Simply Tap and Go (no pre-registration or purchase required) Aggregated fares periodically posted to credit or debit account 5

6 NYC Transit Trial - Phase I Results Over 15,700 Citi PayPass cards involved (credit and debit) More than half of participants used PayPass stations 5+ times per week Two-thirds of participants surveyed rated MasterCard PayPass positively overall Users preferred to use PayPass over MetroCard Most common improvement suggestion was to expand coverage Trial won Leadership Transportation Award from New York University Nearly ¾ of users: pilot approach was equal or better than current system Customers went to the issuer instead of the transit agency for payment questions Fraud risk and acceptance problems were reduced Source: MasterCard, Citibank and MTA PayPass Qualitative Report, PayPass MTA A&U Study Top line Report 6

7 Current Procurements & Programs Programs NYCTA/PATH/NJ Transit Expanded pilot Utah Transit Authority- Full Program Procurements CTA WMATA SEPTA International Stagecoach UK RATP Paris

8 Agency Perspectives

9 Universal Transportation Account Hot Lanes & Tolls Airport/Off Street Parking On Street Parking Multi space Meter Transit Fare Collection Bus Rail Coordinating all modes of transportation is a critical element in achieving modern transportation management goals Transponders License Plate Smart Cards Transit or Bank Issued Key Fobs Cell phone - NFC Data gained by linking parking, toll and transit activity in one account offers customers added convenience, and managers new policy tools All transportation Industries Are moving to common Open Standards. Open bankcard systems provide the platform to Do it Now One Account One Service Point Many Services Slide 9Slide 9

10 Let me emphasize here, Mr. Chairman... The farecards that we use for Metrorail here in Washington, D.C. are only the first generation of what promises to be a versatile tool future farecards may be the same card you use for automatic teller machines. Solid plastic with an integrated microchip they would be used for buses, parking and buying gas. They could also be integrating multiple transit operators and electronic toll collection systems thereby providing a single payment media for all transportation.former FTA Administrator Gordon Linton House Investigations and Oversight Subcommittee Committee on Public Works and Transportation July 21, 1994

11 Practical Considerations Number of contactless bankcards On-Line system performance Achieving point of entry transaction times Transaction Approvals Costs/Bank fees

12 Number of Contactless Bankcards US Based issuance over 100 million and growing Bank Commitments Prepaid card programs can convert to contactless cards Unbanked Riders can be served with a Variety of Prepaid products 30%-40% Many riders have Mag. Stripe Credit or Debit Cards 50%- 60% Prepaid can support until banks convert to contactless

13 On-Line System Approach

14 Costs & Bank Fees Reduced need for fare media & management lowers costs Customer service reduced Bankcards replace transit cards Bank fees already a part of agency costs Conversion to open system will impact bank fees Aggregation may lower costs Incremental transactions will raise costs Agency should develop understanding of costs as baseline

15 Conclusions Open Payments gaining momentum in industry domestically and abroad Lowers operating costs Outsourcing Broader distribution to all economic segments Less cash Technology well proven in other industries and now succeeding in transit