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Contactless media for urban transport services


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Brian Dobson, Future Ticketing Technology Mananger Transport for London

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Contactless media for urban transport services

  1. 1. Contactless media for urbantransport servicesBrian DobsonFuture Ticketing Technology ManagerTransport for London
  2. 2. Oyster today • Complete multi-operator, multi-mode smart integrated ticketing system • 46m cards produced (20K new per day) • Accepted on all TfL & TOC rail services & all bus services within London • Used for 83% of all trips – main non-Oyster usage is Train & Bus travellers from outside London.1
  3. 3. Big picture – where we have got to• Contactless smart ticketing has delivered the business case – High gate throughput prevents bottlenecks constraining ridership growth on rail – Fast boarding time minimises bus fleet sizes and drives up appeal of bus vs. car – Fraud has been hammered• But Oyster has issues: – Expense is uncomfortably high given TfL’s need to reduce operating expenditure – Customer experience is far from perfect• Could we do this even better?2
  4. 4. Majority of public transport fares comefrom infrequent or irregular customers “Commuters” “Non-commuters”3
  5. 5. Oyster isn’t the perfect offering for thesecustomers – some things could bebetter``• ISO14443 standard contactless – fast & Keep intuitive• Pay As You Go travel with daily capping – intuitive product that eliminates ticket purchase Keep as a barrier to travel & drives up ridership• Fare Data stored on the card – makes it difficult to maintain and offer new Products Change• Stored value purse on card – “non-commuters” have to invest time in managing PAYG balances and weekly season tickets Change• Oyster is London-specific – many visitors don’t have it Change4
  6. 6. Managing e-purses = changingcurrency at the border Welcome to London! – Eurostar passengers switching to the Underground at St Pancras5
  7. 7. There is a credible contactlessalternative emerging in the UK paymentsmarket• Use ISO14443 standards• Funds held in debit or credit account, not on card• Source of most customers’ funds, so no need for pre-loading• Available UK-wide & internationally6
  8. 8. But fare collection is different from retailpayments – can PAYG be made to work? Canary Wharf 25k people per hour @ <0.5 seconds each7
  9. 9. But the industry’s CP transaction ruleswon’t work for urban transport farecollectionGeneral CP rules Challenges implicit in transport PAYGPrice is known before Price not known until rail journey isthe card is presented completed (or end-of-day if capped)Use of card counters to • Throughput needs set maximummanage risk & acceptable transaction time ofoccasionally fall- 500msforward to Chip & PIN • No PIN pads on transit infrastructureTerminal field is Neither staff nor time to manuallyactivated manually by activate terminal field for eachstore staff8 customer
  10. 10. Happily, the UK banks have developeda new transport transaction modelGeneral CP rules Agreed new rules for transport PAYGPrice is known before Each tap is £0, then operatorthe card is presented back-office calculates price dailyUse of card counters to Operator manages risks to providemanage risk & equivalent protection within theoccasionally fall- 500ms time limit:forward to Chip & PIN • Offline data authentication • Deny Lists (DLs) in terminals • Online auths from the back- officeTerminal field is Terminal field is always active to9activated manually maximise throughput
  11. 11. This new approach is being formalisedas a new set of rules for transporttransactions Card – terminal MerchantVisa, MasterCard interaction intermediateand American (500ms Limit) layer processingExpress are Aggregation ofcreating specific Merchant DL journeys to dailyrule sets for processes chargestransportmerchants that Liabilities &cover these six Mid-journey frequency ofareas inspections authorisations10
  12. 12. Principles under-pinning the newtransport transaction model• Single model applicable for all urban transit operators• Applicable to existing base of contactless cards• Protect throughput of passengers at peak times• Ensure Issuers can earn attractive volumes of additional contactless interchange• Ensure Issuers take minimal additional risks• Ensure that customer statements clearly show daily expenditures for each transit merchant• Optimise role of transit merchants in providing customer service• Maximise fare revenues received by transit11 operators
  13. 13. The model brings benefits forcustomers and transport operatorsCustomers Transport Operators• Save time – “currency • Issue fewer smartcards exchange” eliminated • Pay reduced commissions• Save time – queues • Enjoy reduced customer reduced service burden• Save time – interoperability12 &RSUJKW‹ 7U L DQVSRU I /RQGRQ $O UJKW HVHU W RU O L VU YHG 7KL QI P DWRQ L VL RU L VFRQIGHQWDO L L
  14. 14. Two pre-existing projects set theconditions for contactless credit debitacceptance • Replacement of 20,000 Oyster smartcard readers – Production versions being installed Changes • Introduction of make these wireless 3G “EMV ready” communications for Oyster on 8,500 buses – Implementation underway13
  15. 15. Oyster system will be enhanced toaccept contactless credit debit cardson all modes +14
  16. 16. Contactless credit debit cards = inter-urban interoperability for PAYG farepayment• Distributed by UK card issuers to customers across the country• No city or regional distinctions• Supported by UK-wide marketing and customer education• Very attractive product for business or leisure travellers visiting other UK cities towns on an occasional basis• Importantly, requires transport operators to implement PAYG travel in a consistent manner to15 avoid customer confusion
  17. 17. Is TfL Mobile NFC Ready?• Validation Readers will accept ISO 14443 Card Emulation mode• Support Contactless Credit and Debit applications• Will not support Pin entry – TRANSIT not RETAIL readers• MUST support high throughput – Response Target – 350ms in near future• Need power for Exit after Entry – 3 hours• Suggested NFC ON/OFF switch to GSMA• 8,500 Buses ready in Spring 2012• Olympics 2012• Tube / TOC / Tram / Light Rail by end 2012• Significant interest by other UK Operators16
  18. 18. Broader uses of Mobile NFC• Active contributor on NFC Forum White paper on NFC for Public Transport• Covers Use Cases for Travel Information, Service Disruptions and Customer Services• “I’m a Believer”• Pioneered provision of Live Data Feeds to allow development of Mobile Apps on Tube service• Launching Bus Stop Countdown feeds this year• Looking at use of Smart Posters and secure Tags• London Transport Museum• We await Your NFC Handsets and Services17
  19. 19. Mobile NFC for Public Transport• Thank you for listening• Open to Questions and Comments• Email –• www.nfc-forum/resources/white_papers•