Emerging Technologies inIntegrated Ticketing

Multimodal Transportation PlanningBest Practices and Integration ofTransportation Technologies

Ashish Chandra

PwC

The brief

• What are the current practices for fare collection?

• What are the specific requirements?

• What are some of the best practices prevalent globally?

• What has been the experience in integrating the fare systems ofdifferent modes of transport?

• What are the key issues and challenges?

• What are the market opportunities?

PwC

Payments has evolved from purely cash and in-banktransactions to plastic and digital modes

Future1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

Pre 1950s 1950s-1990s

1950s-1970s 1970s-1990s

Cashwas the primarymode ofpayment

Credit Cards• Invented in 1950’s and peaked as a

percentage of consumertransactions in 1990’s

• The Credit Card penetration in India.stands around 30%

• 17% of mobile users are using e-commerce

Cheques/Demand Drafts

used as mass medium

Debit Cards

• Invented in 1970’s;widespread use after1990’s

• Account for 24%of total consumertransactions inIndia

Electronic Money

Cryptocurrency

• Digital equivalent of cash, stored onelectronic device or remotely at aserver

• The money is moved through E-fundTransfer & Mobile And E-wallets

• The mobile payment market is Indiais expected to reach USD 11 billionby 2018

• An exchange medium created and storedelectronically, using encryption techniques

• Bitcoin was the first decentralizedcryptocurrency, developed in 2009

• Since then, numerous cryptocurrencies havebeen created

• Today, market capitalization ofcryptocurrencies is around$16.5 billion

Technology advancements are continuing todisrupt the way transactions are completed

PwC

Fare Mediums have evolved from paper based tickets to SmartCard improving customer convenience and operational flexibility

15

Evolution

AFC systems originatedwith tokens or papertickets dispensed bystaff or from self-service vendingmachines

Magnetic stripetechnology was adopted forits reliability. HoweverMagnetic stripes get worndown easily

Contactless smart card(CSC) can be adapted by anyAFC architecture and do Datacollection, Auto top-up, Balanceprotection, Loading value online.

Adoption NFC technologyenabled CSC being

integrated into Smartphones to provide a “onedevice for all’ solution.

PwC

Mix of AFC technologies and systems used globally arequite widespread – legacy systems often dictatetechnology adoption

ChicagoChicago card plus & VentraHybrid Architecture

San FranciscoClipperStandards based Account basedClosed system

Washington DCSmartripStandards basedAccountBased – Closed loop

New YorkMetrocardProprietary Card Based –Closed loop

SingaporeEz – Link, CEPASStandard based Accountbased Closed

Hong KongOctopusProprietary Card based Closedloop

TokyoPasmo, SuicaProprietary Account based –Closed loop

LondonOysterHybrid Architecture

UtahFarepayHybrid Architecture

DubaiNolProprietary Card basedClosed loop

NetherlandsOV- ChipkartStandards based Card BasedClose loop

66

PwC

Technology architecture is evolving from Card Centric to AccountCentric Systems – with or without Open Loop/EMV specification

With advances inCommunicationTechnologies andfast data access,the AFC Systemsare also movingtowards dynamicand flexiblesystems whichoffer greatercustomerconvinience

PwC

Standards-based transit fare payment systems provide greaterflexibility in system design, acquisition and operation

• Global standard for chip card

technology, developed by

Europay, MasterCard and Visa in

1993

• Security framework that

defines the interaction between

the chip cards and the payment

device

• Chip stores cardholder and

application data more securely

• Protection against cardreproduction fraud CV

EMVStandards

• Open Standard for PublicTransport (OSPT) Alliancedevelops, maintains, andcertifies product compliancewith CIPURSE,

• Ensures coexistence ofdifferent ticket types

• Allows switching betweenform factors

• Interoperable fare collectionsolutions for cards, stickers,keychain, mobile phones andother consumer devices aswell as infrastructurecomponents

• Dual interface smartcard with

stored value for transit and EMV

chip with RuPay Specifications

• Host Account as a

prepaid/debit/credit card along

with Global Balance stored on

the card

• Allows Open Loop Solution

with Card Based Payment

technologies

• Service Areas defined to store

passes and other non-monetary

information and flags

• Interoperable between operators

with direct interface with NPCI.

PwC

AFC Architecture are also evolving with changes in paymentecosystem

Card Based Account BasedPre-Paid

Account BasedFull Open loop

Transaction Risk Nil Some First Rider Risk

Multi-media Accounts No Yes Yes

Top-ups/ Refunds Slow Fast Not Required

Fare Upgradation Complex & Slow Fast & Flexible Fast & Flexible

Key Benefit Simple & Robust Flexible, Fast & Dynamic Flexible, Universal, Convenient

Key Challenge Inflexible, Slow, ExpensiveConnectivity, Bandwidth and

Memory Requirement

Connectivity, Bandwidth, RISKModel required for Card

Schemes

Card Based Systems “Prepaid” Accounts Tickets Fully Open Loop AccountBased Systems

Cardholder Cardholder CardholderPOS POS POSAccount-Backend

Account-Backend

Issuer Bank

Value stored in E-purse isdeducted at POS

Authorises the transaction fromaccount stored in backend

FirstRiders

Old Rider

Checks with Issuer Bankin case of first rider or

lets pass through

PwC

The future of Validation Mechanisms of AFCs isheading towards hands free/ validation-less travel

1960 19901995

2000

2010

Futureis heading toward handsfree/ Validation less travelthrough Biometric andBluetooth

RFID

NFC

MagneticStripe

Biometric

QR Code

Transport Operators need to validate thecustomers on faster pace as number ofcustomer using the system are growingeveryday

Transport Operators need the efficiency ofthese validation technologies to be able toevolve and be future ready

Validation-Lesstravel is a distinct

possibility innear term

PwC

In a multi-modal environment with hitherto independent operators,integrated ticketing system are a technical and logistical challenge

PwC

Mobility as a ServiceIntegrated journey planning and bookings

Passenger chooses the route from Point Ato Point B. The app can suggests amultimodal route which may start with abike journey followed by a train and thena taxi/ on-demand bus/ one way car share

Costs are displayed making a cleartrade off between speed, comfortand price. Passengers can buy a oneoff journey or a package modelledon mobile phone contract

The app makes the booking forentire journey and also ensures thatthat the hired vehicles are availableand public transport is running ontime

• MaaS Global, a Finnish startup, has developed an App called as Whim, thatallows passengers to mix and match a variety of public and private means oftransport

• Allows combined booking for the complete journey that is linked to youmobile payments

• The app is currently live in Helsinki, Finland and West Midlands, UK

• Integrates information of routes, way to bus stops/ stations, payments and booking, combining the variousoptions in an efficient and cost-effective way, and getting the passenger seamlessly from door to door

• The packages include unlimited public transport access plus a certain number of cab rides anddays of car rental

PwC

Mumbai public transport systems caters to 11 million trips daily,Making it single largest Public Transport market in India

Key Statistics:

11 Million commuters

30 Million trips per day

80% public transport mode share

Good Public Transport coverage

Lowest cost among major globalcities

Key Statistics:

11 Million commuters

30 Million trips per day

80% public transport mode share

Good Public Transport coverage

Lowest cost among major globalcities

Sub-urban railways, buses and metro carry around78-80% motorised public transport and the rest by

intermediate transport systems

Daily Public transport trips across major cities

Mumbai is expected to have extremelyhigh public transport trips as

compared to other major cities

15.0 14.0

5.7 4.3

16.0

40.0

London HongKong

Singapore New York Mumbai* GreaterTokyo

PwC

The diversity in ticketing systems and fare policies has to besimplified for public transport to become the preferred mode

Public TransportOperators

ManualTicketing

System WebsiteDirect

PaymentATVM Mobile App

Single/Return

TicketTypes Daily Pass

Recharge-Smartcard

SeasonPasses

Tokens

CashPayment

TypesStore value-Smartcard

OnlinePayment

MobileWallet

MonorailBusRail Metro IPT

Credit/Debit Card

PwC

The objective of Integrated Ticketing System (ITS) is to provide aseamless travel experience to commuters

The Integrated Ticketing System aims to promote the use of public transport in MumbaiMetropolitan Region (MMR) by making ticketing system easy and attractive

ITS shall assist to:

Combination of modesand transfer

Reduce time topurchase tickets

Reduce fraud andrevenue leakage

Reduce administrativeand fare collection cost

Accurate and reliableinformation to people

Data to develop farepolicies and products

PwC

• Provide a seamless travel experience across multiple modes of transport• Stay connected with customers through real-time service feedback.• Provide personalized products and services• Reward loyal customers through reward schemes

Enhancing the PassengerExperience

• Reduce fraud happening through fare evasion• Simplify processes to collect revenue and data• Enable interoperability with other agencies• Improve day-to-day interactions between partners and vendors• Obtain insights to improve transit planning and operations

Increasing OperationalEfficiency

• Adaptive system architecture that can evolve with technology• Building a Scalable solution• Capitalize on the developer community to create new applications

Developing an Adaptive,Scalable and Future Ready

System Architecture

• Reduce the cost of AFC system by sharing common operating expenses• Expand alternate and non-farebox revenue opportunities• Monetize the ticketing products by entering into strategic partnerships with

potential partner

Ensuring FinancialSustainability

Key objective of the ITS

6

PwC

Concluding remarks…

Technology evolution offers a greater flexibility in fare collection.Customers are increasingly looking towards “ease of payment”

Institutional challenges persist for integrated fare systems in a multi-modalenvironment

In absence of Integrated Fares, multi-level fare products should beaccommodated in Smart Card. Potential to look at emerging standards likeNCMC and OSPT which could offer customised solutions

Transit companies need to look beyond current operations and think aboutbecoming comprehensive “Mobility as a Services Provider” addingvalue to commuter daily lives > Thereby making transit an even moreattractive mobility option

PwC

Thank You

Ashish Chandra

PwC | Capital Projects & Infrastructure

Mobile: +91 (0) 888 4818 365

Email: ashish.chandra@in.pwc.com