© ACS 2010

Open Payment Systems and Fare Collection2010 Fare Collection Workshop

Michael Nash

Michael.Nash@acs-inc.com

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

Evolution of Transit Fare Payment

Magnetic Stripe

TokensCoinsSmart Cards

(closed)

Contactless(open)

NFC

Open

Banking

Payments

NOT

Ticketing

Flash Passes

Source: Greg Garback: WMATA Presentation CTST 2007

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

The Merchant Approach

ACCOUNT BASED SYSTEM• Cards are registered

• into the system by use

• or customer choice

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

Atlas on Line Delivers the Merchant Approach

Slide 4Slide 4

Customer Care

Atlas on LinePayment Platform

•Account Management•Fare Payment Data•Communications &

Authorizations•Reconciliation

•Management & Transit Reports

PaymentProcessing/Aggregation

Bus

Customers

Issuing Banks

Subway

MasterCard, Visa, AMEX

Open

Standard

Contactless

Devices

CommunicationNetworks(EVDO)

Transit Agency

Acquiring Bank

AgencyAccount $

NFC

Contactless Credit, debit,

prepaid cards

SMSIVR

Web Server

Phone

Internet

Ferry

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

NYC Transit Trial –Customer Experience

5

Simply Tap and Go (no pre-registration or purchase required)

Aggregated fares periodically posted to credit or debit account

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

NYC Transit Trial - Phase I Results

6

More than half of

participants used

PayPass stations 5+

times per week

Users preferred

to use

PayPass over

MetroCard

Two-thirds of

participants surveyed

rated MasterCard

PayPass positively

overall

Most common

improvement

suggestion was to

expand coverage

Trial won Leadership

Transportation Award

from New York

University

Customers went to the

issuer instead of the

transit agency for

payment questions

Nearly ¾ of users:

“pilot approach was

equal or better than

current system”

Fraud risk and

acceptance problems

were reduced

Source: MasterCard, Citibank and MTA PayPass Qualitative Report, PayPass MTA A&U Study – Top line Report

Over 15,700 Citi PayPass cards involved (credit and debit)

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

Current Procurements & Programs

Programs

NYCTA/PATH/NJ Transit – Expanded pilot

Utah Transit Authority- Full Program

Procurements

CTA

WMATA

SEPTA

International

Stagecoach – UK

RATP – Paris

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

Agency Perspectives

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

Universal Transportation Account

Slide 9Slide 9

Data gained by linking

parking, toll and transit

activity in one account

offers customers added

convenience, and

managers new policy

tools

One Account

One Service Point

Many Services

RailBus

Hot Lanes & TollsAirport/Off Street

Parking On Street Parking Multi spaceMeter Transit Fare Collection

Key Fobs Cell phone- NFC

License Plate Smart Cards Transit or Bank Issued

Transponders

All transportation Industries

Are moving to common Open

Standards. Open bankcard

systems provide the platform to

Do it Now

Coordinating all modes

of transportation is

a critical element in

achieving modern

transportation

management goals

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

“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 LintonHouse Investigations and Oversight Subcommittee

Committee on Public Works and Transportation

July 21, 1994

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

Practical Considerations

Number of contactless bankcards

On-Line system performance

Achieving point of entry transaction times

Transaction Approvals

Costs/Bank fees

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

Number of Contactless Bankcards

US Based issuance over 100 million and growing

Bank Commitments

Prepaid card programs can convert to contactless cards

50%- 60%

Unbanked

Riders

can be served

with a

Variety of

Prepaid

products

Many riders

have Mag.

Stripe Credit

or

Debit Cards

30%-40%

Prepaid can support

until banks convert to

contactless

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

On-Line System Approach

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

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

© ACS 2010. ACS® and the ACS design are trademarks of ACS Marketing LP in the US and/or other countries. XEROX® and XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.

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