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NFC Payment Solutions for Transit
Easing Regional Mobility
David deKozan Vice President, Strategic Initiatives, CTS Worldwide
June 4, 2014
Transit in Transition
2
TVM, retail outlet,
Overnight Synch and Se8le
Card Based
Downloaded onto phone
TODAY TOMORROW
Over the Air Transac@on
Open Payment Card Op@ons
No Wai@ng Real-‐Time!
Account Based
US Regional Smart Card Programs
Agency Brand Type Architecture Supplier
Atlanta Breeze Mifare- Classic Card Based Cubic
Boston Charlie Mifare-Classic Card Based S&B
Baltimore Charm MifarePlus* Card Based Cubic
Chicago Ventra Open Payment Acc Based Cubic
Los Angeles TAP Mifare-Classic Card Based Cubic
Miami Easy Card Mifare- DESFire Card Based Cubic
Minneapolis Go To Card Mifare- Classic Card Based Cubic
NYNJ PATH SmartLink Mifare- DESFire Card Based Cubic
Philadelphia Freedom/TBD Mifare-DES* Card>>Acc Cubic>Xerox
Salt Lake City Eco-Pass Open Payment Acc Based VIX
San Diego Compass Mifare-Classic Card Based Cubic
San Francisco Clipper Mifare-DESFire Card Based Cubic
Seattle Orca Mifare-DESFire Card Based VIX
Washington D.C. SmarTrip>TBD MifarePlus* Card>>Acc Cubic>Accenture
CONFIDENTIAL & PROPRIETARY 3
NFC Handsets on the Rise NFC Enabled Web Hits October through March
Handset ModelNumber of site visits
% of mobile visits
LG MS770 Motion 4G 3707 5.13%Samsung SPHL710 Galaxy S III 2745 3.80%Samsung GTI9500 Galaxy S IV 1904 2.63%Samsung GTI9300 Galaxy S III 1237 1.71%LG MS769 Optimus L9 1222 1.69%Nokia Lumia 521 1043 1.44%Samsung SGHT999 Galaxy S III 977 1.35%LG P769 Optimus L9 791 1.09%Samsung SPHL900 Galaxy Note II 749 1.04%Samsung SGHT989 Galaxy S II 739 1.02%Samsung SGHM919 Galaxy S IV 668 0.92%Samsung SPHD710 Galaxy SII Epic 4G Touch 632 0.87%Samsung SCHR530M Galaxy S III 617 0.85%HTC M7 One 552 0.76%Samsung SGHI337 Galaxy S IV 540 0.75%Samsung SMN900T Galaxy Note 3 450 0.62%Samsung SPHL720 Galaxy S IV 448 0.62%Google Nexus 7 335 0.46%Samsung SGHT999L Galaxy SIII LTE 309 0.43%Samsung SGHT769 Galaxy S Blaze 4G 293 0.41%Google Nexus 4 282 0.39%Sprint X325c/APX325CKT EVO 4G LTE 253 0.35%HTC 9292 EVO 4G 246 0.34%LG LS970 Optimus G 243 0.34%Samsung SGHI317 Galaxy Note II 240 0.33%Samsung SGHi717 Galaxy Note 222 0.31%Samsung SPHD710BST Galaxy SII Epic 4G Touch 214 0.30%Motorola XT907 DROID RAZR M 4G LTE 204 0.28%Samsung SMN900P Galaxy Note 3 201 0.28%
Total 30.51%
Mobile/NFC Transit Services
CONFIDENTIAL & PROPRIETARY 5
• App discovery • Manage Cards • Manage Profile/Preferences • Manage Account (s)
• Funding Options • Auto-load • Pre-Tax Benefits
• Top Up Cards- Smart Phones, Retail Terminals, Kiosks
• Find Cash accepting retailers • Buy and present tickets • Use transit card for payment
• Commuter tickets, parking, bike share • Get Alerts
• Fare related • Arrivals and notices • E-receipts • Promotions
• Plan Trip • Carry virtual card
• Tap phone for payment
On the Handset – Two Key Components
• The Fare Management App Ø Controls interaction between the transit back office and the credential Ø Interacts with the mobile wallet and/or SE applet to issue requests
and commands Ø Provides the user experience and the available features/products
associated with transit usage and account management • The Credential
Ø A virtual transit card (data file and key set in the SE or via HCE) Ø A transit token (capable of mutual authentication with the reader) Ø A mobile bankcard exposed via NFC Ø A registered 3rd party ID/token Ø A bar code ticket
CONFIDENTIAL & PROPRIETARY 6
Features and Options
Phone with browser
Smartphone Self-Service Application w/o NFC
Smartphone with NFC as reader/writer
Smartphone with NFC and secure element access or HCE
Self-Service Smartphone User Experience
Over-the-Air Loads
Phone as Ticket Media
P
P
O O
P 7
P P P O
P P P P *Mifare 4 Mobile a key to early adoption
CONFIDENTIAL & PROPRIETARY 7
NFC as a Card Interface
CONFIDENTIAL & PROPRIETARY 8
Home PC withNFC
Retail POS
Bank PIN Pad
Personal MobileWith NFC
Pay for on and off-‐street
parking meters
Cycle share
TVMs & ATMs
Tablet RetailDevice
Mobile Credentials in Smart Card Systems (Today)
CONFIDENTIAL & PROPRIETARY 9
SE NFC HCE NFC BLE Bar Code Usability Compatibility Ease of Deployment INF cost
Access Provisioning cost Security C/B support A/B support Low Battery
Trans Speed Off-line
What about Mobile Bankcard?
• Wallet platforms are still in early stages of adoption • Wallet usage models create transactional overhead • Only works in an account based open payment
environment • Agencies lose opportunity to drive payments and
mobility optimization strategies • Challenges exist with redundant PAN’s, card
aliases, cloud wallets, and dynamic PAN’s • Better option may be to find ways to link the transit
app to the mobile wallet through API’s and commercial partnerships
Business Issues
• Who develops and maintains the app? • How does a credential issuer gain access to the SE? • What does it cost? • What are the trade offs for HCE? • How does BLE enhance the solution? • Is it a viable substitute? • Who is responsible for maintaining “the pipes”, ensuring
security, and managing system evolution? • How does the app interact with mobile wallet platforms? • Who is responsible for payment processing and settlement
operations? • Who is responsible for user support? • What opportunities are there for linked applications and who
manages them?
CONFIDENTIAL & PROPRIETARY 11
Integration and Services Aggregation
One single point of contact- we take responsibility for tying together and managing the eco-system
The Regional Mobility App
http://www.youtube.com/watch?v=qhd6XYP2DBE
My real-time alerts
Find, park and pay
When is my bus?
Plan my journey
Reserve a cab, car or
cycle
My cards/tickets
My journey history
Smart re-routing
My commercial
offers
What should I buy?
§ Smart Card Alliance § 191 Clarksville Rd. · Princeton Junction, NJ 08550 · (800) 556-6828 § www.smartcardalliance.org
David deKozan [email protected]