Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation (2015)

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24 Chapter Overview This chapter explores the technology of transit fare payment and collection, includ- ing the relationships between system components, fare media, and other devices, and the roles devices play in the fare collection process itself. It also discusses different types of fare media, focusing on “smart” media such as smartcards, mobile phones and other contactless devices. System Components Modern transit fare payment systems are networks of front-end devices (ticket vending machines, readers at fare gates and fare boxes, platform validators, electronic registering fare boxes) and back-end devices (computers at bus depots and train stations, and the central transit agency computer) that are interconnected over a network of wired and wireless communications (see Figure 5-1). Data flows up and down the system, to support fare transactions and system operations. (Data will also flow in and out between the transit agency and the financial payment system; those relationships will be discussed separately.) Key data flows involved in transit fare system and system operation include: • Fare information, sufficient to complete the transit fare payment transaction (in card-based systems) or to authorize the transit fare payment transaction (in account-based systems). • Fare system rules, such as transfers, fare allocation, etc. • Lists of good and bad cards, which are used by fare boxes and barriers to allow or prevent access to the transit system. (Industry terms vary, but “hot lists” and “cold lists” are often used to identify lists of bad and good cards, respectively.) • System operational data such as dispatch information, automated vehicle location (AVL) information, and automated passenger counting (APC) systems. • System diagnostics, indicating “health and welfare” of card readers, computers and other devices. Whether fare value is stored directly on the fare medium (card-based) or the medium is used to initiate a transaction with a rider’s payment account (account-based), transit agencies need a protocol that automatically transfers money to the operator. For this to occur, automated transit fare payment systems must: 1. Create a secure interface with transit fare payment medium; and 2. Provide sufficient information to complete or initiate a transfer of funds to the transit operator. C H A P T E R 5 Transit Fare Payment System Technology

Transit Fare Payment System Technology 25 Fare Media and Readers Fare media are the physical instruments that a rider uses to access the transit system.15 Transit agencies may decide to accept several different fare media, to accommodate legacy systems, multiple transit modes, or to meet certain fare policy objectives. Although this report focuses on the benefits of contactless smart cards, mobile phones and other electronic devices over other fare media, it also discusses magnetic stripe technology due to its current widespread use in public transit. Magnetic Stripe Cards and Card Readers Magnetic stripe (“mag stripe”) transit fare cards are, second perhaps to cash, the most prevalent form of fare medium in use today. The technology was introduced on the London Underground and the Long Island Railroad (LIRR) in 1964, and consists of a paper or plastic card with a magnetic stripe that can be read by a card reader mounted on a fare box, fare gate or ticket validator (see Figure 5-2).16 Mag stripe cards can only carry a limited number of fare options, due to their limited storage capacity. Security features for mag stripe cards are limited, allowing them to be copied or altered. Mag stripe card readers require physical contact with the transit fare payment card in order to collect the fare. Some card readers are surface mounted and consist of a guide slot through which the rider swipes the card. Other readers require that the rider insert or “dip” the card into a mechanical device, where the card is moved across a reader, and then ejected back to the rider.17 Some farebox systems may also validate or time-stamp the card before ejecting the card, adding Rider Fare media may include a combinaon of smart cards, mobile applicaons, paper ckets, tokens, or cash. Readers may be stand- alone or integrated into front end devices. Front-end devices include fare boxes, fare gates and plaorm validators. May be located on board a transit vehicle, or at a staon. Can be omied in account-based systems. Central computers for the transit fare collecon and payment system. Reader/ Validator Vehicle or Staon Computers Transit Agency Servers Front End Device FARE MEDIA Fare Collecon System “Front End” Fare Collecon System “Back End” Fare Media Sales Sites Sales can take place at TVMs, cket booths, through third parties, Internet sites, and smart phones. Figure 5-1. Transit fare payment system devices.

26 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation further mechanical steps to the process. These electro-mechanical ticket processing units (TPU) or bus ticket validators (BTV) involve sensitive motor-driven equipment, and require routine maintenance and repair. They are also susceptible to vandalism. Contactless Smart Cards and Card Readers Contactless smart cards have become the fare medium of choice with transit agencies during the last decade. Contactless smart cards are pocket-sized cards (usually the size of a bank card) which incorporate a tiny computer chip and antenna, sandwiched between layers of plastic or paper (see Figure 5-3).18 Contactless smart cards are “read” by passing them near a card reader (“tapped” near a “target”), where the card and reader communicate over a radio frequency. Smart cards have no battery, but derive power through the electromagnetic radio signal.19 Over 25 smart card systems have been implemented or are under development at public transit agen- cies in North America (see Table 5-1). Contactless smart cards can also be classified as “full feature” or “limited use” cards. Full feature cards comply with more stringent technical and manufacturing requirements, provide higher security, include greater data capacity, and provide more physical durability. Limited use cards, which may be made of thin plastic or even paper, carry less data, and are best suited for short-term applications, such as a one-trip ticket or daily pass.20 Contactless smart card readers are fitted with antennas connected to other circuitry at the farebox or fare gate. The reader or target is often equipped with colored LEDs to indicate that the card has been accepted or rejected, and display screens that provide fare information or card status (see Figure 5-4). Smart card readers have no openings or moving parts, significantly reducing maintenance costs and susceptibility to vandalism. Source: Gold Coast Transit Figure 5-2. Typical magnetic stripe fare cards. Antenna Loop Computer Chip CONTACTLESS SMART CARD Figure 5-3. Elements of a contactless smart card.

Transit Fare Payment System Technology 27 Contactless Bank Cards, Benefits Cards and Identification Cards Contactless smart card technology is also used in bank cards and credentialing applications (i.e., employee identification badges) that need to protect personal information and/or deliver fast, secure transactions. These cards use open standards established by the financial payments industry or other standards bodies, and are currently in use as government and corporate identification cards, electronic passports and visas, as well as financial payment system cards (credit, debit, prepaid, ATM, and benefits cards).21 These cards share the same communications technology Note: The brand name for each smart card system is trademarked by its respective transit authority. Smart Card System Service Area Descripon Open Payments Breeze Card Greater Atlanta, Georgia (MARTA) Mulagency No CharlieCard Boston Metro Area, Massachuses (MBTA) Mulagency No Charm Card Balmore, MD-Washington, DC Metro Area Regional Agency No Clipper San Francisco Metro Area, California (MTC) Mulagency No COMPASS Greater Vancouver, Canada (TransLink) Mulagency No Compass Card San Diego Metro Area, California (SANDAG) Mulagency No ConnectCard Pisburgh / Allegheny County, Pennsylvania Mulagency No EASY Card Greater Miami/Dade County, Florida Mulagency No FarePay Greater Salt Lake City region (UTA) Regional agency Yes Freedom Philadelphia, PA to Camden County, NJ (PATCO) Single Agency No GO Smartcard Greater Spokane, Washington (STA) Regional agency No Go Ventura Ventura County, California (GCT) Mul agency No Go-To Card Minneapolis-St. Paul Metro Area, Wisconsin Regional agency No METRO Q Card Houston Metro Area, Texas (METRO) Regional agency No OPUS Greater Montréal, Canada Regional Agency No ORCA Greater Seale Metro Area, Washington Mul
agency No Pla
num Pass Phoenix Metro Area, Arizona Mul
agency No PRESTO Greater Ontario, Canada Mul
agency No SmartLink Newark/Northern New Jersey to New York City Single Agency No SmarTrip Greater Washington, D.C. (WMATA) Mulagency No STAR Card Greater Jacksonville, Florida Mulagency No SunGo Tucson Metro Area, Arizona Mulagency No TAP Los Angeles County Region, Cali. (LA Metro) Mulagency No Ventra Chicago Region, Illinois (CTA) Mulagency Yes Connect Greater Sacramento, California (SACRT) Mulagency No eFare Portland Metro Area, Oregon (TriMet) Regional Agency Yes Key Card Southeastern Pennsylvania (SEPTA) Regional Agency Yes Metro Pass St. Louis Metro Area, Missouri (Metro Transit) Regional Agency Yes NEPP Greater Washington, D.C. (WMATA) Mulagency Yes NFPS New York City (MTA) Regional Agency Yes SmarTrip Greater Washington, D.C. (WMATA) Mulagency Yes Smart Card Systems Under Development or In Deployment (paral list, December 2014) Table 5-1. Smart card transit fare payment systems in use in 2014. Figure 5-4. Typical transit smart card reader. Source: King County, Washington

28 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation (ISO 14443) as contactless transit smart cards, although additional protocols for data units, encryption and global IDs are needed to implement an interoperable system. These elements are specified in bank card standards that are implemented worldwide. Smartphone Applications The smartphone has revolutionized the personal computing landscape, giving users unprecedented access to data and real-time information. In 2013, 74 percent of Americans aged 12–64 used a smartphone; that figure is projected to reach 80 percent by 2014.22 By com- parison, the number of credit card owners in the United States is estimated at 71 percent of the population.23 This explosive growth of the smartphone industry presents an opportunity for transit agencies to leverage the technology capabilities of a device already in the hands of nearly three quarters of the U.S. population. Many transit agencies have already implemented mobile ticketing applica- tions, with further studies and proofs-of-concept projects underway as both mobile phone and mobile payments technology evolves (see Figure 5-5). (Mobile applications technologies and approaches will be discussed in depth in Chapter 6.) Other Contactless Devices The embedded computer chip and antenna technology used in contactless smart cards can also be used in other devices such as key fobs, wrist watches, wristbands, and mobile phones.24 These devices use contactless technology that is compatible with smart card readers. These devices have been used to manage access at events, amusement parks, hotels, clubs and hospitals.25 Wearable devices could have particular advantages in transit environments for school children or riders with limited dexterity. For example, the Capital Metro system in Austin, Texas, makes key fobs and wristbands available to seniors and disabled riders (see Figure 5-6).26 In Europe, a developer Source: TriMet Figure 5-5. Smartphone with mobile ticketing application.

Transit Fare Payment System Technology 29 is combining Google Glass technology with a mobile payment application using a novel, “nod- to-pay” approach.27 Chapter 5 Review • Transit fare payment technology comprises the devices used to process electronic transit fare payments. There are generally three elements: – The fare medium carried by the rider – Front-end devices that communicate and interact with the fare medium. � Card readers � Fare boxes, barriers, validators, vending machines – Back-end devices that communicate and interact with front-end devices � Vehicle or station computers � Central transit agency computers • Different transit fare payment media offer a range of capabilities, when assessing customer convenience, data collection, fare structure flexibility, and security. • Contactless smart cards have emerged as the fare medium of choice among transit agencies, due to their versatility and durability, and the reduced maintenance requirements of associ- ated readers. • Many other devices, such as contactless identification cards and smartphones, comply with the same standards as contactless smartcards, which could allow their use as transit fare media and/or payment media. Figure 5-6. Contactless devices used on the Capital Metro System, Austin, Texas. Source: CapMetro