NFC IN PUBLIC TRANSPORT CHARACTERISTICS ... IN PUBLIC TRANSPORT CHARACTERISTICS, CHALLENGES, & TRENDS IN SOUTHEAST ASIA TODAY’S SPEAKERS 2 Namrta Bangia Associate Director Global

Tuesday, June 20th, 2017

Caravelle Saigon, Ho Chi Minh City

NFC IN PUBLIC TRANSPORTCHARACTERISTICS, CHALLENGES, & TRENDS IN SOUTHEAST ASIA

TODAY’S SPEAKERS

2

Namrta Bangia

Associate Director

Global Mass

Transit

Vu Phan Minh Tri

Div. Head of Technical

– Procurement

MAUR

Joerg Schmidt

Transport SIG

Chair

NFC Forum

Sammy Kam

Technical Director

Octopus Cards

Ltd.

Hiroshi Iwamoto

Asst. Mgr- IT & Suica

Bus. Dev. HQ East

Japan Railway

Company

Trevor Findley

Sr. Program

Manager

CH2M

Kelvin Lim

Sr. Mgr, Asst. Chief

Specialist

Land Transport

Authority

ROUNDTABLE DISCUSSION

3

Moderator

Namrta Bangia

Associate Director

Global Mass

Transit

Alexander

Rensink

co-Chairman

NFC Forum

Vu Phan Minh Tri


– Procurement

MAUR

Joerg Schmidt

Transport SIG

Chair

NFC Forum

Sammy Kam

Technical Director

Octopus Cards

Ltd.

Hiroshi Iwamoto


Bus. Dev. HQ East

Japan Railway

Company

Trevor Findley

Sr. Program Manager

CH2M

AGENDA

Advancing Near Field Communication Technology4

Time slot Topic

3:30 – 3:40 pm Introduction to NFC Forum Activities for Transport Market and Major Milestones |

Alexander Rensink, NFC Forum co-Chairman

3:40– 4:00 pm Transport and Ticketing Trends and Outlook in Asia

| Namrta Bangia, Associate Director, Global Mass Transit

4:00– 4:20 pm Introduction of Ho Chi Minh City Urban Rail System | Vu Phan Minh Tri, Head of Division of

Technical Procurement, Management Authority for Urban Railways (MAUR)

4:20 – 4:40 pm The NFC Experience in Transit System Singapore but not without Challenges | Kelvin

Lim, Senior Manager and Assistant Chief Specialist, Land Transport Authority

4:40– 5:00 pm Octopus Journey into Mobile World | Sammy Kam, Technical Director, Octopus Cards

Limited

5:00– 5:20 pm How NFC & Mobile Suica Make Public Transport More Open, Versatile, and Interoperable

| Hiroshi Iwamoto, Assistant Manager, IT & Suica Business Development, East Japan Railway

Company

5:20– 5:40pm A Mobile Revolution: Past, Present and Future of Transport Payments in the U.S. | Trevor

Findley, Senior Program Manager, CH2M

5:40– 6:00 pm NFC Forum Harmonization Overview: Successful Adaptation through a Comprehensive

Partner Network | Joerg Schmidt, NFC Forum Transport SIG Co-Chair

6:00– 6:30pm Roundtable Discussion: Mobile Adoption in Public Transport -- Obstacles and Triumphs

| Moderated by Namrta Bangia, Associate Director, Global Mass Transit

6:30– 7:30 pm Networking & Happy Hour

Alexander Rensink, Co-Chair, NFC Forum

VISIONFC Transport Summit

June 20, 2017, Vietnam

Introduction to NFC Forum Activities for Transport Market and Major Milestones

THREE CHEERS FOR IOS!WELCOME TO THE NFC PARTY!


● Approximately two billion smartphones in the world read NFC Tags anytime, anywhere*

● Consumers will see an explosion of uses in IoT, retail, automotive

and public transportation

● NFC is a horizontal technology like Bluetooth, Wi-Fi, Cameras, etc.

*Statista: https://www.statista.com/statistics/263441/global-smartphone-shipments-forecast/

NFC FORUM’S MISSION


The NFC Forum brings the convenience of NFC technology to life.

We empower organizations to deliver secure, tap-based interactions with an intuitive,

reliable experience to users around the globe.

Or in technical terms: The NFC Forum stands for the open and interoperable

implementation of NFC technology.

Specifications &

Application

Documents

Compliance &

InteroperabilityBranding &

Networking

THE NFC FORUM REPRESENTS


All of the world’s major:

● Chip vendors

● Payment service providers

● Smart phone manufacturers

● Mobile operating system providers

● 150 member companies

● Sponsor Members:

THE NFC FORUM COLLABORATES


Collaborations with industry consortia:


Technology trends creating opportunity for NXP

80% of the world’s economic value will come

from connectivity improvements to existing public transport, cars, devices, and Internet of Things1

Source 1: Euromonitor; Gartner; ARM Holdings; UBS; Center for Strategic and International Studies;

McAfee, NXP analysis, International Telecommunications Union

Source 2: Juniper Research

Everything

connected

Everything

smartEverything

secure

1B+ additional

consumers online,

50B+ connected

devices1

By 2020, one in two

payment cards will be

contactless2

By 2021, 20% of retail POS

transaction value handled

by mobile-POS2

NFC EVERYWHERE

NFC MARKET GROWTH


Source 1: IHS

Source 2: Markets and Markets

Source 3: Strategy Analytics

Source 4: Juniper

2.2 billion NFC-enabled handset shipments by 20201

• NFC adopted across all handset OEMs, covering all OSs

• 72% by 20203, up from 52% in 20163 and 18%1 in 2013

• Apple Pay, Samsung Pay, Android Pay, etc.

• Global NFC market to exceed reach 21.84 Billion by 20202

TRANSPORT NFC MARKET GROWTH


Mobile ticketing market to grow 16.71% CAGR, 2017-20211

Drivers

● By 2018, rapid rise of NFC mobile ticketing apps

Replace paper-based tickets and contactless card solutions

● Customer demand for more convenient, mobile ticketing options

● Rise of NFC-enabled smartphones and wearables capable of

handling mobile ticketing services

● Transport operators, like JR East and Leap Card, that have migrated

to NFC mobile ticketing services from contactless card platforms to

enable passengers to book and validate tickets quickly

Source 1: WhaTech, Transport Market Research

Source 2: NFC Forum Transport White Paper

http://nfc-forum.org/transport-stakeholders/


NFC FORUM PUBLIC TRANSPORT RFINTEROPERABILITY INITIATIVE


OUR GOAL = accelerating the implementation of NFC-enabled mobile ticketing

JOIN THE CONVERSATION AT THE NFC FORUM

● Grab your ticket to access useful

Public Transport resources

White papers

Flyer

Case studies

Event information

Blog posts


http://nfc-forum.org/nfc-and-transport/


THANK YOU!

For more information on how to get

involved: http://nfc-forum.org/


http://nfc-forum.org/

TRANSPORT AND TICKETING TRENDS AND OUTLOOK IN ASIA

Namrta Bangia

Associate Director, Global Mass Transit

VISIONFC Transport SummitTransport and Ticketing Trends and

Outlook in Asia

Namrta BangiaAssociate DirectorGlobal Mass TransitJune 20, 2017

©www.globaltransmission.info

Current Status of Public Transport in Asia

©www.globalmasstransit.net

Asia has some of the biggest metrorail systems in the world.

Asia’s metrorail (includes Pacific) network accounts for around 38% of the total operational network.

In Asia, China has the most extensive operational metro network. The national government has

undertaken massive investment programmes to improve connectivity and boost economic growth. The 10

operational projects in China have a total length of 2,257 km and cover 1,432 stations.

Metrorail network (km)

Global Mass Transit Research

analyzed 81 key operational

metrorail projects in the world

with a total network of over

9,800 km and 7,400+ stations.

Of these, nearly 25 operational

projects covering a network of

3,790 km and 2,700+ stations

were analyzed in Asia.

Key takeaways

Source: GMT Research


Development of light-rail systems in Asia is a relatively recent phenomenon as compared

to their development in North America and Europe.

At 32 years old, the Manila LRT is the oldest system in the region.

Within Asia, the Southeast Asian countries have more mature systems; the light rail network spans

over 178 km in four cities of Bangkok, Kuala Lumpur, Manila and Singapore.

In China, the development of light rail systems is rapidly expanding. The first system was introduced

in 2002 and the network has expanded to over 100 km.

Global Mass Transit Research

analyzed 58 key operational

light rail projects in the world

with a total network of over

3,410 km and 3,800+ stations.

Of these, nearly 10

operational projects covering a

network of over 360 km and

260+ stops/stations were

analyzed in Asia.

Key takeaways

Light rail network (km)



An analysis of metro rail and light rail ridership in nearly 80 cities across the world reveals

that some of the busiest systems in the world are in Asia.

Average daily metrorail ridership (million passengers)

Annual light rail ridership (million passengers)



Asia has an extensive BRT network, accounting for nearly one-fourth of the BRT network

in the world.

China is at the forefront of BRT

development. It accounts for nearly

half of the total BRT network in Asia,

and around 60 per cent of the total

daily ridership.

Taiwan has the second highest

ridership; three cities have a total

BRT network of over 107 km and

witness average daily ridership of over

1.2 million passengers.

In Indonesia, Transjakarta operates

a network of over 200 km in Jakarta

and witnesses average daily ridership

of 370,000 passengers.

Seven cities in India have already

opened BRT systems, even though

each system is operating a very small

network. These systems together

span 174 km and cater to 340,122

passengers per day.

BRT network in Asia (km)

Key takeaways

A total of 38 cities in Asia have BRT systems, which

together span over 1,300 km.

These systems witness average daily ridership of over 6

million passengers.

Source: GMT Research, Global BRT Data


Ticketing Trends


Fare media in 105 major cities across the world

Cities with existing well-developed public

transit systems are switching to advanced

ticketing options for greater customer

engagement and operational efficiency. Cities

with new systems underway are directly

adopting off-the-shelf products for the

deployment of electronic ticketing.

There is emphasis on integration and

interoperability not just across transit modes

(same or multiple operators) but also across

various levels such as at the regional,

national, or even international level, and

across several services such as parking, retail

purchases, identity verification, and building

access.

The penetration of smartphones and

increase in the deployment of NFC devices

has favoured transit agencies because the

customers can now bring their own fare

media and more readily engage in the

advanced fare collection system.

Global trends

There has been an increase in the uptake of electronic ticketing across the world.



However, penetration of NFC-based mobile ticketing remains low across the world.

Of the 105 cities analyzed by Global

Mass Transit Research, 26 cities have

deployed integrated NFC technology

in mobile phones and 21 cities have

deployed the mobile point-of-sale

solutions.

Europe leads the way in the

deployment of mobile ticketing in

public transport systems.

Europe is followed by North

America, where there have been many

deployments in the last one year.

Asia still has a lot of catching up to

do. But it is also the region with the

maximum potential for mobile

ticketing.

Key takeawaysMobile ticketing across the world



Public transport systems in Asia have a high level of AFC adoption.

Ten cities have a hybrid fare collection

system, utilising both paper tickets and

smartcards.

Hybrid ticketing

Fare media in 27 major cities across Asia

The trend in adoption of mobile ticketing

based on NFC technology is similar to rest

of the world.

Of the 27 major cities, 10 are using

mobile ticketing (NFC-based and mPOS

based).

Mobile ticketing

12 out of 27 major cities adopting an

entirely integrated ticketing system across

transport modes and operators

Integration



Asian countries such as Japan and South Korea have been pioneers in the deployment of

NFC-based mobile ticketing in public transport.

Japan South Korea

Key agency • East Japan Railway Company (JR East) • Ministry of Land, Infrastructure and Transport (MOLIT), the Korean Communication Commission (KCC)

Key initiatives • JR East expanded its Suica contactless card solution to mobile wallet-enabled phones with Mobile Suica.•Within two years, JR East reported that there were one million Mobile Suica users.• Thereafter, Mobile Suica was made interoperable with other IC card ticket schemes throughout Japan and to NFC-enabled Android devices.•Apple Pay also launched in Japan specifically to work with Suica and JR East.

• Interoperability between Cashbee Cards (Busan) and T-Money (Seoul) and later nationwide interoperability achieved.• South Korea’s MNOs moved to SIM-based NFC for transportation• Samsung introduced NFC-enabled handsets and terminals.• Gemalto, LG CNS and Coregate provided a solution that included a personalised T-money application preloaded for transit, prepaid and automatic top-up into the SIM cards.• South Korean and Japanese MNOs tied up to create cross-border NFC services to make payments on public transport and convenience stores on a pilot basis.

Timeline •The initiative was launched in 2006.• It was expanded across the country in 2011.• Apple Pay launched in 2016.

• Interoperability initiative launched in 2008. • Delivery of NFC SIM cards and introduction of NFC handsets began in 2011.• Nationwide interoperability achieved in 2014.

Source: GSMA, NFC Forum, GMT Research


Outlook and Opportunities


Asia has the fastest growing urban rail network in the world.

Mode-wise share of projects in Asia Pacific

Global Mass Transit Research analyzed 500 upcoming

urban rail projects in the world with a total network

of over 8,000 km.

Of these, nearly 196 projects, which will together

span 3,824.8 km, will be developed in Asia

(including Pacific region) by 2030 at an investment of

over USD320 billion.

The maximum opportunity lies in metrorail

projects. A total of 143 projects, which will together

span 2,744.82 km, are planned at an investment of

USD249,812 million.

India has more than 72 projects coming up. These

projects will together span 1,312 km and require an

investment of over USD68.4 billion.

China has more than 39 projects coming up. These

projects will together span more than 805 km and

require an investment of USD71 billion.

Vietnam has four new systems coming up. These

systems involve the development of 18 projects

covering 378 km and requiring a total investment of

USD28 billion.

Key takeaways

Longest upcoming projects

Chennai Metro Phase II: 104.6 km

Seoul Light-rail: 85.41 km

Jakarta MRT East-West Corridor: 87 km

Kuala Lumpur ERL Extension: 90 km

Guangzhou Metro Line 18: 62.7 km



Asia is the centre of activity for BRT development.Region-wise upcoming BRT network

Longest upcoming projects till 2020

Dhaka BRT: 42.4 km

Da Nang BRT Line: 24.9 km

Karachi BRT Green Line: 27.5 km

Kuala Lumpur-Klang BRT Corridor: 34 km

Cebu and Ho Chi Minh City BRT systems: 23 km

Global Mass Transit Research analyzed 50 upcoming BRT projects in the world with a

total network of over 1,000 km to be developed by 2030.

Of these, 11 projects, which will together span

over 260 km, will be developed in Asia (including

Pacific region) by 2020.

Some of the biggest projects are coming up in

Vietnam, Pakistan, and Bangladesh.



Mobile subscriber and smartphone growth pivoting to Asia.

Source: GSMA, GMT Research

4.8 billion 5.7 billion

Mobile subscribers

2016 2020

Global Asia Pacific to drive growth

3.8 billion 5.7 billion

Smartphone growth

2016 2020

860 million

1.9 billion

•Asia Pacific will account for nearly two-thirds (571 million) of this increase.•India (310 million) will be the primary driver of this growth.

•Asia Pacific will account half of the new smartphone connections forecast globally by 2020. • India will account for one-fifth of the new smartphone connections globally.

Smartphone adoption rate 2016 (%)63% by

2020


By 2020, Asian countries will lead in population growth and smartphone adoption.

By 2020, the world population is projected to reach 9.6 billion.

Amongst the top 10 countries in terms of population, six will be Asian countries.

Six Asian countries will also lead in smartphone additions.

India, China and Indonesia will lead in net additions in smartphone connections during 2016-2020.

Top 10 countries with highest population in 2020 (million)

Key takeaways

Source: The Economist, GSMA, GMT Research

Net additions in smartphone connections 2016-20 (million)


Firm plans for deployment of mobile ticketing are limited in scope.

An analysis of 105 cities states that more than 50 cities have announced plans to either install new fare

media such as contactless smartcards, bank cards and mobile ticketing; or to expand their existing AFC

systems across multiple modes and operators for integrated ticketing; or to upgrade ticketing

infrastructure and adopt AFC.

13 out of 26 cities in Asia have plans to deploy AFC systems.

Only three cities in Asia have shared plans to deploy mobile ticketing. Of these, two will deploy

mobile ticketing using QR Codes.

Key takeaways

OpportunityNumber of

citiesCities

Contactless smartcards 7 Astana, Beijing, Ho Chi Minh City, Hyderabad, Kochi, Lucknow, Nagpur

Bank cards 2 Bengaluru, Kochi

Mobile ticketing 3 Singapore (NFC mobile ticketing), Delhi, Mumbai (QR Codes)

Fare media integration 4 Bangkok, Chennai, Delhi, Kuala Lumpur

Deployment of AFC 2 Chengdu, Nagpur

Cities with plans for AFC procurement in Asia

This points towards a huge unexplored opportunity for the deployment of NFC.



Challenges and the way forward

A greater opportunity exists to achieve interoperability on a global scale.

For NFC to succeed in the marketplace, NFC mobile devices have to support guaranteed

technical interoperability within the globally relevant contactless infrastructures and

applications.

Most of the transport operators involved are waiting for NFC handsets to become more widely available before moving towards a commercial deployment. In some cases, PT operators still

need to resolve some technical or commercial issues before they can move to full-scale deployment.

The fragmentation of contactless specifications is a key issue. The relevant standards and specifications have developed differences leading to interoperability issues. PTOs have to test

NFC mobile devices for feasibility before they can be approved for use in their particular systems.

A final word

Source: NFC Forum, GMT Research

The mobile payment market is very fragmented because of the nature of the country-specific rollouts. This market is likely to be fragmented for a number of years to come.

Unlike EMV cards, there is also likely to be no global mobile payment solution that can compete with cards in terms of scale or geographical coverage.


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M: +91 999 900 8654

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mailto:[email protected]

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THE CURRENT SITUATION AND DEVELOPMENT PLANNING FOR PUBLIC TRANSPORTATION OF HO CHI MINH CITY

Vu Phan Minh Tri

Head of Division of Technical Procurement, Management Authority for Urban Railways (MAUR)

THE NFC EXPERIENCE IN TRANSIT SYSTEM SINGAPORE BUT NOT WITHOUT CHALLENGES

Kelvin Lim

Senior Manager and Assistant Chief Specialist, Land Transport Authority

OCTOPUS JOURNEY INTO MOBILE WORLD

Sammy Kam

Technical Director, Octopus Cards Limited

Octopus Journey into Mobile World

NFC FORUMVISIONFC Transport Summit

20 June 2017

Octopus Journey

Coins & Paper Magnetic Contactless Mobile Cashless Society

45

Octopus Shareholding Structure

Octopus Holdings Limited

MTR Corporation (57.4%)

Kowloon-Canton Railway (22.1%)

Kowloon Motor Bus (12.4%)

City Bus/ New World First Bus

(5.0%)

New World First Ferry (3.1%)

46

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http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjKz-bvxcXRAhUHnJQKHXFxAMkQjRwIBw&url=http://www.bengsengtravel.com/hong-kong/travel/hk-mtr-adult-tourist-day-pass.html&psig=AFQjCNGQlZqGWuVxvF3crvN75mC0Q0pOaA&ust=1484617645701759

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http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi9vrHKxsXRAhUIHZQKHVANAwMQjRwIBw&url=http://flickriver-lb-1710691658.us-east-1.elb.amazonaws.com/photos/davidsbusphotos/sets/72157650193309875/&psig=AFQjCNEGJGsAkUDsi34ZEiCt86Cm4PxrlA&ust=1484617789788425

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj4i6XnxsXRAhUHmJQKHXwQAroQjRwIBw&url=http://www.gakei.com/nff/nff.htm&psig=AFQjCNFKaWCEogtr4dai29hElvBMiUIWhQ&ust=1484617892593380

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj4i6XnxsXRAhUHmJQKHXwQAroQjRwIBw&url=http://www.gakei.com/nff/nff.htm&psig=AFQjCNFKaWCEogtr4dai29hElvBMiUIWhQ&ust=1484617892593380

47

Transaction Counts Processed Daily

Transaction Amount Processed Daily (US$)

000 0 0, ,014>

42 00, ,0$ 000>

Supermarket

48

Bus

Train

Ferry

Personal CareFood & BeverageConvenience Store

Widely accepted in Mass Transportation and Retail SectorsIndispensable in Hong Kong everyday life• Number of terminals: >76000 (vs. contactless credit card 17000)• Coverage of retail outlets: 20000 (vs. contactless credit card

6800)

Note: Txn counts of payment cards including credit/ debit cards and Octopus using in transportation and retail (Q1-3 2016)

49

> 50% Octopus Payment Value Contributed by Retail

90% Txn Counts of Payment Cards Contributed by Octopus

1997TRANSPORTATION

2016RETAIL

DOMINANT

50

Online Payment Service (2014)

Octopus Mobile SIM (2013)Octopus Mobile App (2012)

O! ePay: Network-based Stored Value Account (2016)

Online & Mobile Service Offerings

Octpus_NFC_ToaBoa_final.mp4

Octpus_NFC_ToaBoa_final.mp4

Octopus_mobile2013_v1.mp4

Octopus_mobile2013_v1.mp4

PCCW_Samsung_S5_TVC_15sec_140417_subtitle.mp4

PCCW_Samsung_S5_TVC_15sec_140417_subtitle.mp4

Octopus_App_Demo.mp4

Octopus_App_Demo.mp4

51

• Joint development among Octopus, Sony and Gemalto

• Octopus SIM with NFC Handset working on all 76,000 Octopus readers

Octopus Mobile SIM

Different Mobile Payment Options for Different Customer Needs

P2P PaymentOnline Payment

52

Proximity Payment

Leverage Octopus ID for Mobile Loyalty Scheme

Register Octopus Card ID in merchant mobile app

Tap Octopus Card and earn OK dollars & e-stamps automatically

53

Remote Mobile Ordering with Payment Capability

Register Octopus Card ID in merchant mobile app

Make order via app remotely

Pay by Octopus at the kiosk in the store and take the pre-ordered food

54

Card Mobile

Dependency on network

All-Inclusive Hybrid Products to Serve Every HK People

No dependency on network

Quick & consistent 0.3ms

Wide coverage age 3+

Interactive

Diversified applications

Handy

55

56

Mass Appeal Mobile Wallet Platform to Manage and Distribute Marketing Offers and mCoupons

Support posting/ sharing in social media/ fulfillment

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiV-o2Im7zTAhVIlJQKHTmCBDwQjRwIBw&url=http://www.thecrazyshoppingcart.com/p/coupon-clippingorganization.html&psig=AFQjCNFyF64hZ7LxOWBw3hVXSaWHSOtU0Q&ust=1493092913113810

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57

e-ticketing/ e-Pass on Mobile

Purchase e-Ticket

XXXX Ticketing Office

E-Pass available even if the phone is offline“My Passes” consolidates all e-tickets

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjn3NHZtrzTAhXFJJQKHd1YDoEQjRwIBw&url=http://lindatan878.blogspot.com/2012/12/alpensia-ocean-700-water-park.html&psig=AFQjCNFdzOGGOzXUm-VoBtBcNlndtt_-4w&ust=1493098732316072

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjn3NHZtrzTAhXFJJQKHd1YDoEQjRwIBw&url=http://lindatan878.blogspot.com/2012/12/alpensia-ocean-700-water-park.html&psig=AFQjCNFdzOGGOzXUm-VoBtBcNlndtt_-4w&ust=1493098732316072

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj7vvTmr7zTAhXJFZQKHX7eBj4QjRwIBw&url=http://www.awe.pacim.com/NewsLetter/200607/index.htm&psig=AFQjCNH0tFMk6VewN4qkZbk3QVI_lXLp7A&ust=1493098529074576

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj7vvTmr7zTAhXJFZQKHX7eBj4QjRwIBw&url=http://www.awe.pacim.com/NewsLetter/200607/index.htm&psig=AFQjCNH0tFMk6VewN4qkZbk3QVI_lXLp7A&ust=1493098529074576

58

QR Code Payment for Small Merchant Segment

59

Mobile Wallet is Heating Up

• Security concern

• Tipping point to change usage habit

• Convergence of mobile payment applications

• Market education

Keys to Mobile Payment Taking Off

Customer Experience

Value Creation

Market Confidence

Customer Incentives 60

令生活更輕鬆Making ever yday l i fee a s i e r

Make it Right

Make it Smart

Make a Difference

61

Thank You

HOW NFC & MOBILE SUICA MAKE PUBLIC TRANSPORT MORE OPEN, VERSATILE, AND INTEROPERABLE

Hiroshi Iwamoto

Assistant Manager, IT & Suica Business Development, East Japan Railway Company

A MOBILE REVOLUTION: PAST, PRESENT AND FUTURE OF TRANSPORT PAYMENTS IN THE U.S.

Trevor Findley

Senior Program Manager, CH2M

A Mobile Revolution: Past, Present & Future of Transport Payments in the U.S.

VISIONFC Transport SummitJune 20, 2017

66

CH2M is an international design and engineering firm with a fare collection focus in North America

Clipper®, San Francisco MTC

RFCS, Seattle

TAP, LACMTASmarTrip, WMATA

SmartLink, PA of NY/NJ

TranslinkVancouver

Integrated Ticketing System, Sydney PTTC

Integrated Ticketing Translink Brisbane

Automated Ticketing System, MelbournePublic Transport Corp.

Integrated Fares System, Auckland

EZ Link Card CompanySingapore Smart Card System

Denver RTD

Tri Rail EASY Card South Florida

Prestige Transport for London

TransLink SystemThe Netherlands

LombardiaInformaticaMilan

Compass Card San Diego

Smart Card FPS, Honolulu

CEN/ISSWorkshop

Brussels

Smart Card FPS San Jose VTA AFCS & Mobile Ticketing

Baltimore

Fare Collection & Parking System, PATCO

TTA Electronic FPSNorth Carolina

VentraCTA & Pace

Electronic FPS Phoenix

FPS, Austin

MetroTasHobart

Electronic Road pricing with bank issued smart card LTA Singapore

National tolling & road use charges with GPS & DSRC, Wellington

Tolling with DSRC, GPS & smart cards Hong Kong SAR

eFare, Portland TriMet

Open Payment Strategy UTA

AFCS Design St Louis Metro

Presto CardToronto

Smart Card Irish Rail

Parking Payments ParkeonParis

NOTE: FPS = Fare Payment System,AFCS = Automated Fare Collection System

67

Bringing together U.S. transport, payment, and mobile industries is a complex problem

• 6,792 Transport Agencies

• 5,231 Card-Issuing Banks

– 1.1 Billion Issued Cards

– 453 Million Active Accounts

• 5 Mobile Network Operators

– 417 Million Mobile Subscribers

– 55% Android, 44% iOS, 1% Other

Transit Agencies

Mobile Network

Operators

Card Issuers

68

U.S. transport agencies are at vastly different stages of technology deployment

Paper

Tickets

1st Generation

Smart Cards

Visual &

Barcode Mobile Ticketing

Magnetic

Tickets

Contactless Open

Payments

Cash

Tokens

Closed-Loop

NFC

69


Paper

Tickets

1st Generation

Smart Cards

Visual &


Cash

Magnetic

Tickets

Contactless Open

PaymentsTokens

Legacy Systems:

New York, NY (MTA)

Philadelphia, PA (SEPTA)

Most Small- to Mid-Size Agencies

Closed-Loop

NFC

70


Paper

Tickets

1st Generation

Smart Cards

Visual &


Magnetic

Tickets

Contactless Open

Payments

1st Generation Systems:

Boston, MA (MBTA)

Washington, DC (WMATA)

Seattle, WA (ORCA)

San Francisco, CA (Clipper)

Los Angeles, CA (LACMTA)

Closed-Loop

NFC

Tokens

Cash

71


Paper

Tickets

1st Generation

Smart Cards

Visual &


Magnetic

Tickets

Contactless Open

Payments

Closed-Loop

NFCNext-Gen Systems:

Chicago, IL (CTA)

Portland, OR (TriMet)

Tokens

Cash

72

Most agencies are moving to NFC payment, but the path differs based on their current situation

• Legacy Systems have the most straightforward path to a “greenfield implementation”

– Open Architecture (Open APIs)

– Account-Based/ID-Based

– Real-Time (Cellular) Communications

– EMV Compliant Design

• 1st Generation Systems have a tougher choice between upgrade or “burn & replace”

– Proprietary systems with restrictive contracts

– System architecture and devices incompatible with EMV acceptance

– Customer transition is difficult under either scenario

73

Agencies are using non-NFC mobile ticketing as a way to quickly introduce new technology

• Efficient deployment as stand-beside solution– Turnkey solutions available

– Low or no infrastructure costs

• Shows innovation internally and to the public – Strong customer demand

– Aligns well with existing operating models

• Strategies for acceptance and transition vary– Optically scanned tickets may be fully integrated into account-/ID-based systems

– Some see mobile ticketing as only a stepping stone to closed-loop NFC payment

74

Technology and the introduction of NFC payment into the transport space continues to evolve

Thank You

Trevor FindleySr. Program ManagerElectronic Payment [email protected]+1 (860) 478-3399

NFC FORUM HARMONIZATION OVERVIEW: SUCCESSFUL ADAPTATION THROUGH A COMPREHENSIVE PARTNER NETWORK

Dr. Joerg Schmidt

1st Co-Chair Transport SIG, NFC Forum

● RF interoperability with mobile Public Transport services is reality

● All certified NFC-enabled mobile devices will work with Public Transport systems

● NFC Forum leads interoperability efforts

For latest developments: www.nfc-forum.org

77Advancing Near Field Communication Technology6/20/2017

Key Presentation Take-Aways

The Importance of NFC for the Transport Market

78Advancing Near Field Communication Technology


6/20/2017


796/20/2017 Advancing Near Field Communication Technology

Transforming the NFC Public Transport Experience

● What is the role of the NFC Forum Transport SIG?

NFC Forum Transport SIG acts as a bridge between transport industry stakeholders

● How is the Transport SIG working to increase the adoption of NFC in the Public Transport sector?

Working with key stakeholders in leading standards organizations to harmonize specifications

The NFC Forum took the lead in the harmonization of globally relevant contactless standards for NFC mobile devices:

Gap analysis finalized

Solutions identified and verified

Specification for “Interoperable NFC” for Mobile Devices released and published


NFC Forum and Contactless Standards

Why are there so many different Public

Transport systems implementations in place?

Requirements to Public Transport systems vary from

country to country or even city to city

Applications and system implementations have to

follow

Services and business cases are typically

optimized for local, frequent users and local

rules

816/20/2017

Public Transport Systems and Interoperability

Advancing Near Field Communication Technology

Interoperability is key to a positive customer

experience

NFC mobile devices will work with Public Transport

readers based on current specifications

Just a few percent of interoperability issues can

mean thousands of disappointed customers every

day

Certified interoperability is mandatory for

deployment and key to business success for

service providers

826/20/2017



How to establish interoperability between

Mobile sector and Public Transport sector?

Synchronize RF-interface specifications for NFC

mobile devices and Public Transport devices

Establish synchronized test and certification

processes for NFC mobile devices and Public

Transport devices

836/20/2017



Mobile sector

NFC Device as fare media or

reader

Interoperability withISO/IEC 14443 / CEN TS 16794 ISO/IEC 18092 EMVCo L1 (CEM only)

Testing according to NFC Forum specifications

Certification by GCF / NFC Forum

Global Public Transport sector

NFC Forum specifies implementation and test of RF-

interface ISO/IEC14443-based PT systems

ISO/IEC18092-based PT systems

CEN TS 16794To be certified by Smart Ticketing Alliance

Implementation and test specifications available.Testing by accredited labs

EMVCobased PT systems

EMVCo Level 1Testing by EMVCo accredited labs

ISO/IEC 14443 based PT systems

ISO/IEC 18092 based PT systems

846/20/2017

Mobile and Public Transport Standardization



Framework for Interoperability

Interoperability requires continuous cooperation between the relevant standardization bodies as specifications evolve. The NFC Forum has established relationships with the relevant bodies:

Global network for alignment on PT market business requirements

Continuous harmonization of the relevant specifications via liaisons

Base standards

PT-specific standards


ISO/IEC14443ISO JTC1 SC17 WG8

EMVCo L1EMVCo, LLC

Base standards

CEN TS16794CEN TC278 WG3 SG5

ISO TC204 WG8PT-specific standards IN PROGRESS


Framework for Interoperability

Global network for alignment on PT market business requirements


Base standards

PT-specific standards


ISO/IEC14443ISO JTC1 SC17 WG8

EMVCo L1EMVCo, LLC

Base standards

CEN TS16794CEN TC278 WG3 SG5

ISO TC204 WG8PT-specific standards IN PROGRESS

Interoperability requires continuous cooperation between the relevant standardization bodies as specifications evolve. The NFC Forum has established relationships with the relevant bodies:

Achievements:

GSMA, CEN and Public Transport stakeholders joint working group with NFC Forum completed technical work on interoperability with ISO/IEC 14443

NFC Forum’s interoperability solution proposals accepted

876/20/2017

NFC Forum Public Transport RF Interoperability Initiative


The Interoperability demo shown at the Federal Ministry of Economic Affairs and Energy in Berlin was a big success

886/20/2017

Optimos Interoperability Event 1st Sept. 2016


896/20/2017

Next Steps: RF Interoperabilitywith PT Infrastructures




90

Cross-border / regioninteroperability

MobilityApplications

Mobile device as default interface to PT services

ID Management

Account-based Ticketing

Integration of Open Payment services

Mobility and mobile platforms are getting more and more important for travelers and commuters , therefore the Transport

SIG has to consider to broaden its scope

6/20/2017

Further potentially Activities of the Transport SIG


NFC Forum-driven work on interoperability has

allowed:

Harmonized specifications for NFC-interface of mobile

devices and ISO-conformant Public Transport

equipment

Alignment on EMVCo standards established

Synchronized test and certification for NFC mobile

devices and Public Transport equipment by respective

bodies

916/20/2017

Conclusions


Leading to the following benefits:

No Public Transport infrastructure changes required

Regional testing or adaptation of mobile handsets is no

longer necessary

Co-existence between NFC Forum and EMVCo

specifications and certifications for NFC mobile devices

provided

All certified NFC-enabled mobile devices will work with

Public Transport systems

Future-proofed NFC interoperability due to continuous

alignments with partners

926/20/2017

Conclusions


We want you to:

Become a leader in the Rapidly Growing NFC Industry

Join the NFC Forum!

For more information on how to get involved:



Thank you!

Questions?

ROUNDTABLE DISCUSSION: MOBILE ADOPTION IN PUBLIC TRANSPORT –OBSTACLES AND TRIUMPHS

95

Moderator

Namrta Bangia

Associate Director

Global Mass Transit

Alexander Rensink

co-Chairman

NFC Forum

Vu Phan Minh Tri


– Procurement

MAUR

Joerg Schmidt

Transport SIG Chair

NFC Forum

Sammy Kam

Technical Director

Octopus Cards Ltd.

Hiroshi Iwamoto


Bus. Dev. HQ East

Japan Railway

Company

Trevor Findley

Sr. Program Manager

CH2M