The National Academies Press

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From page 30... ... 30 Chapter Overview This chapter highlights several emerging technologies and practices that can provide public transit agencies with a variety of options to improve and enhance their own operations, while offering riders increased convenience. These include: • Availability and security of contactless bankcards, which increase the potential ridership base for public transit agencies; • Availability of prepaid and reloadable payment cards, which offer options for unbanked or underbanked transit customers; • Advances in mobile payments and mobile technology, which can be incorporated into next generation transit fare payment systems; • Acceptance of smart card ID credentials on transit, which can improve customer convenience through integration with transit benefit programs; and, • Convergence of mobile payments, travel and planning information across multiple modes of transportation. Read the entire page →
From page 31... ... Emerging Payment Technologies and Payment Convergence 31 an open loop transit fare payments system. While the percentage of riders using these cards has been relatively small, they provide an additional payment option for riders who do not have a transit payment card or pass.28 Higher Security: The EMV Card To reduce the risks of fraud with magnetic credit and debit cards, financial institutions are introducing smart cards with a secure microprocessor chip in them which provides strong security for payment transactions and the data stored on the cards. Read the entire page →
From page 32... ... 32 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation Banks are the legal issuer of any "branded" prepaid card (e.g., MasterCard, Visa) Read the entire page →
From page 33... ... Emerging Payment Technologies and Payment Convergence 33 under development which eliminate the need for a rider to activate a mobile ticket or initiate a mobile payment. Flash Pass The most common form of mobile payment which has been adopted in the United States for transit payments is when the mobile device hosts a ticketing application which emulates a paper ticket or pass. Read the entire page →
From page 34... ... 34 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation Several transit agencies and contract transit providers are using this flash pass approach to augment their existing fare systems, including: • Capital Metropolitan Transportation Authority (Austin, Texas) , CapMetro.32 • Dallas Area Rapid Transit (DART) Read the entire page →
From page 35... ... Emerging Payment Technologies and Payment Convergence 35 NFC payments have been successfully demonstrated in several transit agencies. Recent developments in mobile payment technology are likely to accelerate the adoption of NFC technology among transit riders and transit agencies. Read the entire page →
From page 36... ... 36 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation Bluetooth beacons that detect nearby mobile phones or devices (see Figure 6-7) Read the entire page →
From page 37... ... Emerging Payment Technologies and Payment Convergence 37 Scope Efficiency Penetraon Technical Maturity Flash Pass and Bar Code Flash pass cannot be used at fare gates or barriers, which prevents integration in a fully gated system. Bar code allows use at fare gates or barriers, but requires installation of bar code readers. Read the entire page →
From page 38... ... 38 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation Directive 12 in 2004, all federal government employees have been issued smart card identification cards, with identifying information about the employee encrypted on the chip on the card. The cards have both contact and contactless interfaces, and are used for access to computer networks and government facilities. Read the entire page →
From page 39... ... Emerging Payment Technologies and Payment Convergence 39 contactless payments using government ID's. OPACITY (Open Protocol for Access Control, Identification and Ticketing with Privacy) Read the entire page →
From page 40... ... 40 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation Improvements in technology make transportation alternatives more convenient. Websites and smart phone apps that provide real-time transit data make public transportation easier to use, particularly for infrequent users. Read the entire page →
From page 41... ... Emerging Payment Technologies and Payment Convergence 41 Reducing Downtown Congestion by Sharing Parking Data Los Angeles is home to an innovative parking demonstration called ExpressPark. The goals of this program are to make it easier for drivers to find parking spaces, and reduce congestion downtown. Read the entire page →
From page 42... ... 42 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation times, they received a $5 toll credit, and the more often they used car pools or took transit, the more chances they had to win gift cards.51 LA Metro also offered rewards to travelers who referred others to the program, and announced the rewards given on social media. After one year, the demonstration resulted in increased transit ridership by 14 percent, and 110 new van pools were created. Read the entire page →
From page 43... ... Emerging Payment Technologies and Payment Convergence 43 Integrating Transit with Shared-Use Mobility Options As urban populations grow, a more diverse set of transportation choices is emerging, including bike, car, scooter, electric vehicle and ride-share programs. These transportation choices are being built into our cities using a "complete streets" approach. Read the entire page →
From page 44... ... 44 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation Source: BCycle Figure 6-13. Bicycle docking station and bicycles. Read the entire page →
From page 45... ... Emerging Payment Technologies and Payment Convergence 45 also be able to access specific demographic data (e.g., residence address, age, etc.) associated with the transit rider's account. Read the entire page →

From page 30...

... 30 Chapter Overview This chapter highlights several emerging technologies and practices that can provide public transit agencies with a variety of options to improve and enhance their own operations, while offering riders increased convenience. These include: • Availability and security of contactless bankcards, which increase the potential ridership base for public transit agencies; • Availability of prepaid and reloadable payment cards, which offer options for unbanked or underbanked transit customers; • Advances in mobile payments and mobile technology, which can be incorporated into next generation transit fare payment systems; • Acceptance of smart card ID credentials on transit, which can improve customer convenience through integration with transit benefit programs; and, • Convergence of mobile payments, travel and planning information across multiple modes of transportation.