Metropolitan Transportation Authority

New Fare Payment SystemsUpdate

Presentation to

Capital Program Oversight Committee

May 23, 2011

Metropolitan Transportation Authority

Agenda• Goals

• Concept

• Challenges

• Moving forward

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Metropolitan Transportation Authority

MTA goals• Lower cost of revenue collection

− Average 15¢ cost per revenue dollar collected

• Integrate fare payment across modes & agencies

• Substantially reduce cash use

• Speed up performance at turnstiles & fareboxes− Speed up bus boarding and reduce dwell times

• Future-proof

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Metropolitan Transportation Authority

Fare payment concept• Account-based, not card-based

– More like E-Z Pass, less like MetroCard

• Account may reside with bank, MTA, mobile phone network or other 3rd party provider

• For entry, customer will tap, not swipe, at readers on turnstiles and fareboxes

• Tap contactless credit/debit card, prepaid card, phone or MTA Card

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Metropolitan Transportation Authority

Fare payment concept (cont.)• Encourage customers to self-serve on-line, at ATMs

and kiosks, and via widespread external network of retail merchants

• Leverage existing payment industry infrastructure, products and services

• Use relatively inexpensive and commercially available off-the-shelf-hardware and software

• Applicable to all modes and agencies– All agencies involved in concept development– All agencies have or will have pilots

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Metropolitan Transportation Authority

Commuter railroad pilots• One pilot for each LIRR and MNR

– On-board and off-board payments

• Plus test handheld devices

• Pilots commence in 1Q 2012

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Industry outreach• Suppliers

• Transit authorities

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Industry outreach: Suppliers• Widespread industry interest about this project

• May 10: 150 representatives from 80 vendors− Payment industry including banks and other issuers,

card brands, acquirers

− System integrators

− Hardware manufacturers

− Wireless network carriers

− Fare collection system suppliers

− IT service companies

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Industry outreach: Transit authorities• Current implementations of open payments

− London (TfL)

− Salt Lake City (UTA)

• In close contact with major US transit systems that are procuring open payment systems

• Working with regional partners on seamless intermodal travel− NJT

− PANYNJ/PATH

Metropolitan Transportation Authority

Fare payment challenges

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• Installation of bus readers

• Managing commercial relationship with payments industry

• Subway communications networks

• MTA-issued card & reload network• Transition from MetroCard

− Customers

− Employees

• Effective communication

Metropolitan Transportation Authority

Moving forward: Next 6 months• Develop detailed requirements for MTA-issued

card and reload network

• Develop Project Plan: requirements, cost estimate, schedule, procurement strategy

• Develop payments industry negotiation strategy

• Finalize subway communications networks plan

• Select System Integrator

• Install hardware on Staten Island buses

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