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6 Smartcard Interoperability Issues for the Transit Industry System System Region Region A A Analyze Gap Gap Identify Identify Identify Complete Analyze Analyze Analysis Analysis Incompati- Incompati Incompati -- Cost Cost of Costof of bilities bilities bilities Modification Modification Modification System System Region Region B B Gap Gap Identify Identify Identify System System 1 1 Analysis Analysis Incompati- Incompati Incompati -- Region Region NN bilities bilities bilities Figure 2. Intra-regional interoperability analysis. suppliers have to work together to accomplish inter- and intra-regional interoperability, par- ticularly when there is a significant generation gap in the technologies employed. 1.4 Interoperability Beyond Transit The financial services industry anticipates two types of interoperability opportunities with transportation participants: "Real Estate" Sharing on the Card--There are two models. In each model participants do not interact. In one model, an ATM or credit card embeds a chip containing the transportation application. In the other, an ATM or credit card has the transit application resident with the credit and debit card data on the same chip. Table 1 shows the relationship of a shared-chip architecture. Card Functionality Sharing--This occurs when the transit application can be used to pay for services beyond transportation or a non-transit payment product can be used to pay for a ride. Table 2 shows the relationship of a shared application structure. The interoperability elements discussed in this report also apply to interoperability with non- transportation participants. An agreement between the participants must first be established. Once an agreement is established, the interoperable technology solution can be identified and a clear set of business rules developed that, at a minimum, define the following: Technology requirements, Processes for system operation, Table 1. Shared-chip architecture. Multi-Applications Security Identification Stored Value (e.g., Identification (e.g., Merchant Loyalty Digital Signature Drivers License) Card Characteristics Coffee House) Shared Value Purse Application Bank Card Transit Products Personal Transit Trip Data Points Transit Benefits Purse (Pre-Tax $)