NFC in Public Transport: Characteristics, Challenges & Trends in Southeast Asia

Tuesday, June 20th, 2017
Caravelle Saigon, Ho Chi Minh City
NFC IN PUBLIC
TRANSPORT
CHARACTERISTICS,
CHALLENGES, & TRENDS
IN SOUTHEAST ASIA

TODAY’S SPEAKERS
2
Namrta Bangia
Associate Director
Global Mass
Transit
Vu Phan Minh Tri
Div. Head of Technical
– Procurement
MAUR
Joerg Schmidt
Transport SIG
Chair
NFC Forum
Sammy Kam
Technical Director
Octopus Cards
Ltd.
Hiroshi Iwamoto
Asst. Mgr- IT & Suica
Bus. Dev. HQ East
Japan Railway
Company
Trevor Findley
Sr. Program
Manager
CH2M
Kelvin Lim
Sr. Mgr, Asst. Chief
Specialist
Land Transport
Authority

ROUNDTABLE DISCUSSION
3
Moderator
Namrta Bangia
Associate Director
Global Mass
Transit
Alexander
Rensink
co-Chairman
NFC Forum
Vu Phan Minh Tri
– Procurement
MAUR
Joerg Schmidt
Transport SIG
Chair
NFC Forum
Sammy Kam
Technical Director
Octopus Cards
Ltd.
Hiroshi Iwamoto
Bus. Dev. HQ East
Japan Railway
Company
Trevor Findley
Sr. Program Manager
CH2M

AGENDA
Advancing Near Field Communication Technology4
Time slot Topic
3:30 – 3:40 pm Introduction to NFC Forum Activities for Transport Market and Major Milestones |
Alexander Rensink, NFC Forum co-Chairman
3:40– 4:00 pm Transport and Ticketing Trends and Outlook in Asia
| Namrta Bangia, Associate Director, Global Mass Transit
4:00– 4:20 pm Introduction of Ho Chi Minh City Urban Rail System | Vu Phan Minh Tri, Head of Division of
Technical Procurement, Management Authority for Urban Railways (MAUR)
4:20 – 4:40 pm The NFC Experience in Transit System Singapore but not without Challenges | Kelvin
Lim, Senior Manager and Assistant Chief Specialist, Land Transport Authority
4:40– 5:00 pm Octopus Journey into Mobile World | Sammy Kam, Technical Director, Octopus Cards
Limited
5:00– 5:20 pm How NFC & Mobile Suica Make Public Transport More Open, Versatile, and Interoperable
| Hiroshi Iwamoto, Assistant Manager, IT & Suica Business Development, East Japan Railway
Company
5:20– 5:40pm A Mobile Revolution: Past, Present and Future of Transport Payments in the U.S. | Trevor
Findley, Senior Program Manager, CH2M
5:40– 6:00 pm NFC Forum Harmonization Overview: Successful Adaptation through a Comprehensive
Partner Network | Joerg Schmidt, NFC Forum Transport SIG Co-Chair
6:00– 6:30pm Roundtable Discussion: Mobile Adoption in Public Transport -- Obstacles and Triumphs
| Moderated by Namrta Bangia, Associate Director, Global Mass Transit
6:30– 7:30 pm Networking & Happy Hour

Alexander Rensink, Co-Chair, NFC Forum
VISIONFC Transport Summit
June 20, 2017, Vietnam
Introduction to NFC Forum Activities for Transport Market and Major
Milestones

THREE CHEERS FOR IOS!
WELCOME TO THE NFC PARTY!
● Approximately two billion smartphones in the world read NFC Tags
anytime, anywhere*
● Consumers will see an explosion of uses in IoT, retail, automotive
and public transportation
● NFC is a horizontal technology like Bluetooth, Wi-Fi, Cameras, etc.
*Statista: https://www.statista.com/statistics/263441/global-smartphone-shipments-forecast/

NFC FORUM’S MISSION
The NFC Forum brings the convenience of NFC technology to life.
We empower organizations to deliver secure, tap-based interactions with an intuitive,
reliable experience to users around the globe.
Or in technical terms: The NFC Forum stands for the open and interoperable
implementation of NFC technology.
Specifications &
Application
Documents
Compliance &
Interoperability
Branding &
Networking

THE NFC FORUM REPRESENTS
All of the world’s major:
● Chip vendors
● Payment service providers
● Smart phone manufacturers
● Mobile operating system providers
● 150 member companies
● Sponsor Members:

THE NFC FORUM COLLABORATES
Collaborations with industry consortia:

Technology trends creating opportunity for NXP
80% of the world’s economic value will come
from connectivity improvements to existing public transport, cars, devices, and Internet of Things1
Source 1: Euromonitor; Gartner; ARM Holdings; UBS; Center for Strategic and International Studies;
McAfee, NXP analysis, International Telecommunications Union
Source 2: Juniper Research
Everything
connected
Everything
smart
Everything
secure
1B+ additional
consumers online,
50B+ connected
devices1
By 2020, one in two
payment cards will be
contactless2
By 2021, 20% of retail POS
transaction value handled
by mobile-POS2
NFC EVERYWHERE

NFC MARKET GROWTH
Source 1: IHS
Source 2: Markets and Markets
Source 3: Strategy Analytics
Source 4: Juniper
2.2 billion NFC-enabled handset shipments by 20201
• NFC adopted across all handset OEMs, covering all OSs
• 72% by 20203, up from 52% in 20163 and 18%1 in 2013
• Apple Pay, Samsung Pay, Android Pay, etc.
• Global NFC market to exceed reach 21.84 Billion by 20202

TRANSPORT NFC MARKET GROWTH
Mobile ticketing market to grow 16.71% CAGR, 2017-20211
Drivers
● By 2018, rapid rise of NFC mobile ticketing apps
 Replace paper-based tickets and contactless card solutions
● Customer demand for more convenient, mobile ticketing options
● Rise of NFC-enabled smartphones and wearables capable of
handling mobile ticketing services
● Transport operators, like JR East and Leap Card, that have migrated
to NFC mobile ticketing services from contactless card platforms to
enable passengers to book and validate tickets quickly
Source 1: WhaTech, Transport Market Research
Source 2: NFC Forum Transport White Paper
http://nfc-forum.org/transport-stakeholders/

NFC FORUM PUBLIC TRANSPORT RF
INTEROPERABILITY INITIATIVE
OUR GOAL = accelerating the implementation of NFC-enabled mobile ticketing

JOIN THE CONVERSATION AT THE NFC
FORUM
● Grab your ticket to access useful
Public Transport resources
 White papers
 Flyer
 Case studies
 Event information
 Blog posts
http://nfc-forum.org/nfc-and-transport/

THANK YOU!
For more information on how to get
involved: http://nfc-forum.org/

TRANSPORT AND
TICKETING TRENDS
AND OUTLOOK IN
ASIA
Namrta Bangia
Associate Director, Global Mass Transit

Transport and Ticketing Trends and
Outlook in Asia
Namrta Bangia
Associate Director
Global Mass Transit
June 20, 2017

©www.globaltransmission.info
Current Status of Public Transport in Asia

©www.globalmasstransit.net
Asia has some of the biggest metrorail systems in the world.
Asia’s metrorail (includes Pacific) network accounts for around 38% of the total operational network.
 In Asia, China has the most extensive operational metro network. The national government has
undertaken massive investment programmes to improve connectivity and boost economic growth. The 10
operational projects in China have a total length of 2,257 km and cover 1,432 stations.
Metrorail network (km)
Global Mass Transit Research
analyzed 81 key operational
metrorail projects in the world
with a total network of over
9,800 km and 7,400+ stations.
Of these, nearly 25 operational
projects covering a network of
3,790 km and 2,700+ stations
were analyzed in Asia.
Key takeaways
Source: GMT Research

Development of light-rail systems in Asia is a relatively recent phenomenon as compared
to their development in North America and Europe.
 At 32 years old, the Manila LRT is the oldest system in the region.
Within Asia, the Southeast Asian countries have more mature systems; the light rail network spans
over 178 km in four cities of Bangkok, Kuala Lumpur, Manila and Singapore.
In China, the development of light rail systems is rapidly expanding. The first system was introduced
in 2002 and the network has expanded to over 100 km.
Global Mass Transit Research
analyzed 58 key operational
light rail projects in the world
with a total network of over
3,410 km and 3,800+ stations.
 Of these, nearly 10
operational projects covering a
network of over 360 km and
260+ stops/stations were
analyzed in Asia.
Key takeaways
Light rail network (km)

An analysis of metro rail and light rail ridership in nearly 80 cities across the world reveals
that some of the busiest systems in the world are in Asia.
Average daily metrorail ridership (million passengers)
Annual light rail ridership (million passengers)

Asia has an extensive BRT network, accounting for nearly one-fourth of the BRT network
in the world.
China is at the forefront of BRT
development. It accounts for nearly
half of the total BRT network in Asia,
and around 60 per cent of the total
daily ridership.
Taiwan has the second highest
ridership; three cities have a total
BRT network of over 107 km and
witness average daily ridership of over
1.2 million passengers.
In Indonesia, Transjakarta operates
a network of over 200 km in Jakarta
and witnesses average daily ridership
of 370,000 passengers.
Seven cities in India have already
opened BRT systems, even though
each system is operating a very small
network. These systems together
span 174 km and cater to 340,122
passengers per day.
BRT network in Asia (km)
Key takeaways
A total of 38 cities in Asia have BRT systems, which
together span over 1,300 km.
These systems witness average daily ridership of over 6
million passengers.
Source: GMT Research, Global BRT Data

Ticketing Trends

Fare media in 105 major cities across the world
Cities with existing well-developed public
transit systems are switching to advanced
ticketing options for greater customer
engagement and operational efficiency. Cities
with new systems underway are directly
adopting off-the-shelf products for the
deployment of electronic ticketing.
There is emphasis on integration and
interoperability not just across transit modes
(same or multiple operators) but also across
various levels such as at the regional,
national, or even international level, and
across several services such as parking, retail
purchases, identity verification, and building
access.
The penetration of smartphones and
increase in the deployment of NFC devices
has favoured transit agencies because the
customers can now bring their own fare
media and more readily engage in the
advanced fare collection system.
Global trends
There has been an increase in the uptake of electronic ticketing across the world.

However, penetration of NFC-based mobile ticketing remains low across the world.
Of the 105 cities analyzed by Global
Mass Transit Research, 26 cities have
deployed integrated NFC technology
in mobile phones and 21 cities have
deployed the mobile point-of-sale
solutions.
Europe leads the way in the
deployment of mobile ticketing in
public transport systems.
Europe is followed by North
America, where there have been many
deployments in the last one year.
Asia still has a lot of catching up to
do. But it is also the region with the
maximum potential for mobile
ticketing.
Key takeaways
Mobile ticketing across the world

Public transport systems in Asia have a high level of AFC adoption.
Ten cities have a hybrid fare collection
system, utilising both paper tickets and
smartcards.
Hybrid ticketing
Fare media in 27 major cities across Asia
The trend in adoption of mobile ticketing
based on NFC technology is similar to rest
of the world.
 Of the 27 major cities, 10 are using
mobile ticketing (NFC-based and mPOS
based).
Mobile ticketing
12 out of 27 major cities adopting an
entirely integrated ticketing system across
transport modes and operators
Integration

Asian countries such as Japan and South Korea have been pioneers in the deployment of
NFC-based mobile ticketing in public transport.
Japan South Korea
Key agency • East Japan Railway Company (JR East) • Ministry of Land, Infrastructure and Transport
(MOLIT), the Korean Communication Commission
(KCC)
Key initiatives • JR East expanded its Suica contactless
card solution to mobile wallet-enabled
phones with Mobile Suica.
•Within two years, JR East reported that
there were one million Mobile Suica
users.
• Thereafter, Mobile Suica was made
interoperable with other IC card ticket
schemes throughout Japan and to NFC-
enabled Android devices.
•Apple Pay also launched in Japan
specifically to work with Suica and JR
East.
• Interoperability between Cashbee Cards (Busan) and
T-Money (Seoul) and later nationwide interoperability
achieved.
• South Korea’s MNOs moved to SIM-based NFC for
transportation
• Samsung introduced NFC-enabled handsets and
terminals.
• Gemalto, LG CNS and Coregate provided a solution
that included a personalised T-money application
preloaded for transit, prepaid and automatic top-up
into the SIM cards.
• South Korean and Japanese MNOs tied up to create
cross-border NFC services to make payments on
public transport and convenience stores on a pilot
basis.
Timeline •The initiative was launched in 2006.
• It was expanded across the country in
2011.
• Apple Pay launched in 2016.
• Interoperability initiative launched in 2008.
• Delivery of NFC SIM cards and introduction of NFC
handsets began in 2011.
• Nationwide interoperability achieved in 2014.
Source: GSMA, NFC Forum, GMT Research

Outlook and Opportunities

Asia has the fastest growing urban rail network in the world.
Mode-wise share of projects in Asia Pacific
Global Mass Transit Research analyzed 500 upcoming
urban rail projects in the world with a total network
of over 8,000 km.
Of these, nearly 196 projects, which will together
span 3,824.8 km, will be developed in Asia
(including Pacific region) by 2030 at an investment of
over USD320 billion.
The maximum opportunity lies in metrorail
projects. A total of 143 projects, which will together
span 2,744.82 km, are planned at an investment of
USD249,812 million.
India has more than 72 projects coming up. These
projects will together span 1,312 km and require an
investment of over USD68.4 billion.
China has more than 39 projects coming up. These
projects will together span more than 805 km and
require an investment of USD71 billion.
Vietnam has four new systems coming up. These
systems involve the development of 18 projects
covering 378 km and requiring a total investment of
USD28 billion.
Key takeaways
Longest upcoming projects
Chennai Metro Phase II: 104.6 km
Seoul Light-rail: 85.41 km
Jakarta MRT East-West Corridor: 87 km
Kuala Lumpur ERL Extension: 90 km
Guangzhou Metro Line 18: 62.7 km

Asia is the centre of activity for BRT development.
Region-wise upcoming BRT network
Longest upcoming projects till 2020
Dhaka BRT: 42.4 km
Da Nang BRT Line: 24.9 km
Karachi BRT Green Line: 27.5 km
Kuala Lumpur-Klang BRT Corridor: 34 km
Cebu and Ho Chi Minh City BRT systems: 23 km
Global Mass Transit Research analyzed 50
upcoming BRT projects in the world with a
total network of over 1,000 km to be
developed by 2030.
Of these, 11 projects, which will together span
over 260 km, will be developed in Asia (including
Pacific region) by 2020.
Some of the biggest projects are coming up in
Vietnam, Pakistan, and Bangladesh.

Mobile subscriber and smartphone growth pivoting to Asia.
Source: GSMA, GMT Research
4.8 billion 5.7 billion
Mobile subscribers
2016 2020
Global Asia Pacific to drive growth
3.8 billion 5.7 billion
Smartphone growth
2016 2020
860 million
1.9 billion
•Asia Pacific will account for nearly two-
thirds (571 million) of this increase.
•India (310 million) will be the primary
driver of this growth.
•Asia Pacific will account half of the new
smartphone connections forecast globally
by 2020.
• India will account for one-fifth of the new
smartphone connections globally.
Smartphone adoption rate 2016 (%)
63% by
2020

By 2020, Asian countries will lead in population growth and smartphone adoption.
By 2020, the world population is projected to reach 9.6 billion.
Amongst the top 10 countries in terms of population, six will be Asian countries.
Six Asian countries will also lead in smartphone additions.
India, China and Indonesia will lead in net additions in smartphone connections during 2016-2020.
Top 10 countries with highest population in 2020
(million)
Key takeaways
Source: The Economist, GSMA, GMT Research
Net additions in smartphone connections 2016-20
(million)

Firm plans for deployment of mobile ticketing are limited in scope.
An analysis of 105 cities states that more than 50 cities have announced plans to either install new fare
media such as contactless smartcards, bank cards and mobile ticketing; or to expand their existing AFC
systems across multiple modes and operators for integrated ticketing; or to upgrade ticketing
infrastructure and adopt AFC.
13 out of 26 cities in Asia have plans to deploy AFC systems.
Only three cities in Asia have shared plans to deploy mobile ticketing. Of these, two will deploy
mobile ticketing using QR Codes.
Key takeaways
Opportunity
Number of
cities
Cities
Contactless smartcards 7 Astana, Beijing, Ho Chi Minh City, Hyderabad, Kochi, Lucknow, Nagpur
Bank cards 2 Bengaluru, Kochi
Mobile ticketing 3 Singapore (NFC mobile ticketing), Delhi, Mumbai (QR Codes)
Fare media integration 4 Bangkok, Chennai, Delhi, Kuala Lumpur
Deployment of AFC 2 Chengdu, Nagpur
Cities with plans for AFC procurement in Asia
This points towards a huge unexplored opportunity for the deployment of NFC.

Challenges and the way forward
A greater opportunity exists to achieve interoperability on a global scale.
For NFC to succeed in the marketplace, NFC mobile devices have to support guaranteed
technical interoperability within the globally relevant contactless infrastructures and
applications.
Most of the transport operators involved are waiting for NFC handsets to become more widely
available before moving towards a commercial deployment. In some cases, PT operators still
need to resolve some technical or commercial issues before they can move to full-scale
deployment.
The fragmentation of contactless specifications is a key issue. The relevant standards and
specifications have developed differences leading to interoperability issues. PTOs have to test
NFC mobile devices for feasibility before they can be approved for use in their particular
systems.
A final word
Source: NFC Forum, GMT Research
The mobile payment market is very fragmented because of the nature of the country-specific
rollouts. This market is likely to be fragmented for a number of years to come.
Unlike EMV cards, there is also likely to be no global mobile payment solution that can compete
with cards in terms of scale or geographical coverage.

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Contact
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Global Mass Transit
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M: +91 999 900 8654
E: namrta.bangia@globalmasstransit.net
W: www.globalmasstransit.net
Twitter: GMT_Research

THE CURRENT SITUATION
AND DEVELOPMENT
PLANNING FOR PUBLIC
TRANSPORTATION OF HO
CHI MINH CITY
Vu Phan Minh Tri
Head of Division of Technical Procurement,
Management Authority for Urban Railways (MAUR)

THE NFC EXPERIENCE
IN TRANSIT SYSTEM
SINGAPORE BUT NOT
WITHOUT CHALLENGES
Kelvin Lim
Senior Manager and Assistant Chief Specialist,
Land Transport Authority

OCTOPUS JOURNEY
INTO MOBILE WORLD
Sammy Kam
Technical Director, Octopus Cards Limited

Octopus Journey into Mobile World
NFC FORUM
20 June 2017

Octopus Journey
Coins & Paper Magnetic Contactless Mobile Cashless Society
45

Octopus Shareholding Structure
Octopus Holdings
Limited
MTR Corporation
(57.4%)
Kowloon-Canton
Railway (22.1%)
Kowloon Motor
Bus (12.4%)
City Bus/ New
World First Bus
(5.0%)
New World
First Ferry (3.1%)
46

47
Transaction Counts
Processed Daily
Transaction Amount
Processed Daily (US$)
000 0 0, ,014>
42 00, ,0$ 000>

Supermarket
48
Bus
Train
Ferry
Personal CareFood & BeverageConvenience Store
Widely accepted in Mass Transportation and Retail Sectors
Indispensable in Hong Kong everyday life
• Number of terminals: >76000 (vs. contactless credit card 17000)
• Coverage of retail outlets: 20000 (vs. contactless credit card
6800)

Note: Txn counts of
payment cards
including credit/ debit
cards and Octopus
using in transportation
and retail (Q1-3 2016)
49
> 50% Octopus Payment Value Contributed by Retail
90% Txn Counts of Payment Cards Contributed by Octopus
1997
TRANSPORTATION
2016
RETAIL
DOMINANT

50
Online Payment Service (2014)
Octopus Mobile SIM (2013)Octopus Mobile App (2012)
O! ePay: Network-based
Stored Value Account (2016)
Online & Mobile
Service Offerings

51
• Joint development among Octopus, Sony and
Gemalto
• Octopus SIM with NFC Handset working on
all 76,000 Octopus readers
Octopus Mobile SIM

Different Mobile Payment Options
for Different Customer Needs
P2P PaymentOnline Payment
52
Proximity Payment

Leverage Octopus ID for Mobile Loyalty Scheme
Register Octopus Card ID
in merchant mobile app
Tap Octopus Card
and earn OK dollars &
e-stamps automatically
53

Remote Mobile Ordering with Payment Capability
Register Octopus Card ID
in merchant mobile app
Make order
via app
remotely
Pay by Octopus at the
kiosk in the store and
take the pre-ordered
food
54

Card Mobile
Dependency
on network
All-Inclusive Hybrid Products to Serve Every HK People
No dependency
on network
Quick &
consistent 0.3ms
Wide coverage
age 3+
Interactive
Diversified
applications
Handy
55

56
Mass Appeal Mobile Wallet
Platform to Manage and Distribute
Marketing Offers and mCoupons
Support posting/ sharing in social media/ fulfillment

57
e-ticketing/ e-Pass on Mobile
Purchase e-Ticket
XXXX
Ticketing Office
E-Pass available even if the phone is offline
“My Passes” consolidates all e-tickets

58
QR Code Payment for Small Merchant Segment

59
Mobile Wallet is Heating Up
• Security concern
• Tipping point to change usage habit
• Convergence of mobile payment
applications
• Market education

Keys to Mobile Payment Taking Off
Customer Experience
Value Creation
Market Confidence
Customer Incentives 60

令生活更輕鬆
Making ever yday life
e a s i e r
Make it Right
Make it Smart
Make a Difference
61

HOW NFC & MOBILE
SUICA MAKE PUBLIC
TRANSPORT MORE
OPEN, VERSATILE, AND
INTEROPERABLE
Hiroshi Iwamoto
Assistant Manager, IT & Suica Business
Development, East Japan Railway Company

A MOBILE
REVOLUTION: PAST,
PRESENT AND FUTURE
OF TRANSPORT
PAYMENTS IN THE U.S.
Trevor Findley
Senior Program Manager, CH2M

A Mobile Revolution:
Past, Present & Future of Transport Payments in the U.S.
June 20, 2017

66
CH2M is an international design and engineering
firm with a fare collection focus in North America
Clipper®, San Francisco MTC
RFCS, Seattle
TAP, LACMTA
SmarTrip, WMATA
SmartLink, PA of NY/NJ
Translink
Vancouver
IntegratedTicketing
System, Sydney PTTC
IntegratedTicketing
TranslinkBrisbane
AutomatedTicketing
System, Melbourne
Public Transport Corp.
IntegratedFares
System, Auckland
EZ Link Card
Company
Singapore Smart CardSystem
Denver RTD
TriRail EASY Card
South Florida
Prestige
Transport
for London
TransLinkSystem
TheNetherlands
Lombardia
Informatica
Milan
Compass Card
San Diego
Smart Card
FPS, Honolulu
CEN/ISS
Workshop
Brussels
Smart Card FPS
San JoseVTA AFCS & Mobile Ticketing
Baltimore
FareCollection & Parking
System, PATCO
TTAElectronic FPS
North Carolina
Ventra
CTA & Pace
Electronic FPS
Phoenix
FPS, Austin
MetroTas
Hobart
ElectronicRoad pricing with
bank issued smart card
LTA Singapore
Nationaltolling & road use charges
withGPS & DSRC, Wellington
Tolling with DSRC,
GPS & smart cards
Hong Kong SAR
eFare, Portland TriMet
Open Payment
Strategy
UTA
AFCS Design
St Louis Metro
PrestoCard
Toronto
Smart Card
Irish Rail
Parking
Payments
Parkeon
Paris
NOTE:FPS= Fare PaymentSystem,
AFCS= AutomatedFare CollectionSystem

67
Bringing together U.S. transport, payment, and
mobile industries is a complex problem
• 6,792 Transport Agencies
• 5,231 Card-Issuing Banks
– 1.1 Billion Issued Cards
– 453 Million Active Accounts
• 5 Mobile Network Operators
– 417 Million Mobile Subscribers
– 55% Android, 44% iOS, 1% Other
Transit
Agencies
Mobile
Network
Operators
Card
Issuers

68
U.S. transport agencies are at vastly different
stages of technology deployment
Paper
Tickets
1st Generation
Smart Cards
Visual &
Barcode Mobile Ticketing
Magnetic
Tickets
Contactless Open
Payments
Cash
Tokens
Closed-Loop
NFC

69
Paper
Tickets
1st Generation
Smart Cards
Visual &
Cash
Magnetic
Tickets
Contactless Open
Payments
Tokens
Legacy Systems:
New York, NY (MTA)
Philadelphia, PA (SEPTA)
Most Small- to Mid-Size
Agencies
Closed-Loop
NFC

70
Paper
Tickets
1st Generation
Smart Cards
Visual &
Magnetic
Tickets
Contactless Open
Payments
1st Generation Systems:
Boston, MA (MBTA)
Washington, DC (WMATA)
Seattle, WA (ORCA)
San Francisco, CA (Clipper)
Los Angeles, CA (LACMTA)
Closed-Loop
NFC
Tokens
Cash

71
Paper
Tickets
1st Generation
Smart Cards
Visual &
Magnetic
Tickets
Contactless Open
Payments
Closed-Loop
NFC
Next-Gen Systems:
Chicago, IL (CTA)
Portland, OR (TriMet)
Tokens
Cash

72
Most agencies are moving to NFC payment, but
the path differs based on their current situation
• Legacy Systems have the most straightforward
path to a “greenfield implementation”
– Open Architecture (Open APIs)
– Account-Based/ID-Based
– Real-Time (Cellular) Communications
– EMV Compliant Design
• 1st Generation Systems have a tougher choice
between upgrade or “burn & replace”
– Proprietary systems with restrictive contracts
– System architecture and devices
incompatible with EMV acceptance
– Customer transition is difficult under
either scenario

73
Agencies are using non-NFC mobile ticketing as a
way to quickly introduce new technology
• Efficient deployment as stand-beside solution
– Turnkey solutions available
– Low or no infrastructure costs
• Shows innovation internally and to the
public
– Strong customer demand
– Aligns well with existing operating models
• Strategies for acceptance and transition vary
– Optically scanned tickets may be fully integrated into account-/ID-based systems
– Some see mobile ticketing as only a stepping stone to closed-loop NFC payment

74
Technology and the introduction of NFC payment
into the transport space continues to evolve

Thank You
Trevor Findley
Sr. Program Manager
Electronic Payment Systems
trevor.findley@ch2m.com
+1 (860) 478-3399

NFC FORUM
HARMONIZATION
OVERVIEW: SUCCESSFUL
ADAPTATION THROUGH A
COMPREHENSIVE
PARTNER NETWORK
Dr. Joerg Schmidt
1st Co-Chair Transport SIG, NFC Forum

● RF interoperability with mobile Public Transport services is
reality
● All certified NFC-enabled mobile devices will work with Public
Transport systems
● NFC Forum leads interoperability efforts
For latest developments: www.nfc-forum.org
77Advancing Near Field Communication Technology6/20/2017
Key Presentation Take-Aways

The Importance of NFC for the Transport
Market
78Advancing Near Field Communication Technology
http://nfc-forum.org/transport-stakeholders/
6/20/2017

796/20/2017 Advancing Near Field Communication Technology
Transforming the NFC Public Transport
Experience
● What is the role of the NFC Forum
Transport SIG?
 NFC Forum Transport SIG acts as a
bridge between transport industry
stakeholders
● How is the Transport SIG working
to increase the adoption of NFC in
the Public Transport sector?
 Working with key stakeholders in
leading standards organizations to
harmonize specifications

The NFC Forum took the lead in the harmonization of globally
relevant contactless standards for NFC mobile devices:
 Gap analysis finalized
 Solutions identified and
verified
 Specification for
“Interoperable NFC” for
Mobile Devices released
and published
NFC Forum and Contactless Standards

Why are there so many different Public
Transport systems implementations in place?
 Requirements to Public Transport systems vary from
country to country or even city to city
 Applications and system implementations have to
follow
 Services and business cases are typically
optimized for local, frequent users and local
rules
816/20/2017
Public Transport Systems and
Interoperability
Advancing Near Field Communication Technology

Interoperability is key to a positive customer
experience
 NFC mobile devices will work with Public Transport
readers based on current specifications
 Just a few percent of interoperability issues can
mean thousands of disappointed customers every
day
 Certified interoperability is mandatory for
deployment and key to business success for
service providers
826/20/2017
Interoperability

How to establish interoperability between
Mobile sector and Public Transport sector?
 Synchronize RF-interface specifications for NFC
mobile devices and Public Transport devices
 Establish synchronized test and certification
processes for NFC mobile devices and Public
Transport devices
836/20/2017
Interoperability

Mobile sector
NFC Device as
fare media or
reader
Interoperability with
ISO/IEC 14443 / CEN TS 16794
ISO/IEC 18092
EMVCo L1 (CEM only)
Testing according to NFC Forum
specifications
Certification by GCF / NFC Forum
Global Public Transport
sector
NFC Forum specifies
implementation and test of RF-
interface ISO/IEC14443-
based PT
systems
ISO/IEC18092-
based PT
systems
CEN TS 16794
To be certified by
Smart Ticketing Alliance
Implementation and test
specifications available.
Testing by accredited labs
EMVCo
based PT
systems
EMVCo Level 1
Testing by EMVCo accredited
labs
ISO/IEC
14443 based
PT systems
ISO/IEC 18092
based PT
systems
846/20/2017
Mobile and Public Transport
Standardization

Framework for Interoperability
Interoperability requires continuous cooperation between the relevant
standardization bodies as specifications evolve. The NFC Forum has established
relationships with the relevant bodies:
Global network for alignment on PT
market business requirements
Continuous harmonization of the relevant
specifications via liaisons
Base
standards
PT-specific
standards
ISO/IEC14443
ISO JTC1 SC17 WG8
EMVCo L1
EMVCo, LLC
Base
standards
CEN TS16794
CEN TC278 WG3 SG5
ISO TC204 WG8PT-specific
standards IN PROGRESS

Framework for Interoperability
Global network for alignment on PT
market business requirements
Base
standards
PT-specific
standards
ISO/IEC14443
ISO JTC1 SC17 WG8
EMVCo L1
EMVCo, LLC
Base
standards
CEN TS16794
CEN TC278 WG3 SG5
ISO TC204 WG8PT-specific
standards IN PROGRESS
Interoperability requires continuous cooperation between the relevant
standardization bodies as specifications evolve. The NFC Forum has established
relationships with the relevant bodies:
Achievements:
 GSMA, CEN and Public Transport
stakeholders joint working group with NFC
Forum completed technical work on
interoperability with ISO/IEC 14443
 NFC Forum’s interoperability solution
proposals accepted

876/20/2017
NFC Forum Public Transport RF
Interoperability Initiative

The Interoperability demo shown at the Federal Ministry of
Economic Affairs and Energy in Berlin was a big success
886/20/2017
Optimos Interoperability Event
1st Sept. 2016

896/20/2017
Next Steps: RF Interoperability
with PT Infrastructures
http://nfc-forum.org/nfc-and-transport/

90
Cross-border / region
interoperability
Mobility
Applications
Mobile device as default
interface to PT services
ID Management
Account-based Ticketing
Integration of Open
Payment services
Mobility and mobile platforms are getting more and more
important for travelers and commuters , therefore the Transport
SIG has to consider to broaden its scope
6/20/2017
Further potentially Activities of the
Transport SIG

NFC Forum-driven work on interoperability has
allowed:
 Harmonized specifications for NFC-interface of mobile
devices and ISO-conformant Public Transport
equipment
 Alignment on EMVCo standards established
 Synchronized test and certification for NFC mobile
devices and Public Transport equipment by respective
bodies
916/20/2017
Conclusions

Leading to the following benefits:
 No Public Transport infrastructure changes required
 Regional testing or adaptation of mobile handsets is no
longer necessary
 Co-existence between NFC Forum and EMVCo
specifications and certifications for NFC mobile devices
provided
 All certified NFC-enabled mobile devices will work with
Public Transport systems
 Future-proofed NFC interoperability due to continuous
alignments with partners
926/20/2017
Conclusions

We want you to:
Become a leader in the Rapidly Growing NFC Industry
Join the NFC Forum!
For more information on how to get involved:
http://nfc-forum.org/

ROUNDTABLE DISCUSSION:
MOBILE ADOPTION IN PUBLIC TRANSPORT –
OBSTACLES AND TRIUMPHS
95
Moderator
Namrta Bangia
Associate Director
Global Mass Transit
Alexander Rensink
co-Chairman
NFC Forum
Vu Phan Minh Tri
– Procurement
MAUR
Joerg Schmidt
Transport SIG Chair
NFC Forum
Sammy Kam
Technical Director
Octopus Cards Ltd.
Hiroshi Iwamoto
Bus. Dev. HQ East
Japan Railway
Company
Trevor Findley
Sr. Program Manager
CH2M

NFC in Public Transport: Characteristics, Challenges & Trends in Southeast Asia

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