Mobility Payments Asia Pacific 2023

Registration

Introduction

Introduction to MPAP2023, conference theme and objectives, business and technology areas to be discussed.

Greg Pote, Chairman, APSCA

Welcome address from Taipei Department of Transportation

Welcome to Mobility Payments Asia Pacific 2023 in Taiwan from Taipei City Government.

Ming-Hong HSIEH, Commissioner, Department of Transportation, Taipei City Government

Welcome address from Co-organiser

Welcome to Mobility Payments Asia Pacific 2023 in Taiwan from the co-organiser, APTRC.

Jason S.K. CHANG, Director - Advanced Public Transportation Research Center, National Taiwan University

Keynote address from Guest of Honour

Latest public transport policy initiatives in Taiwan, including introduction to the TPASS monthly traffic pass.

Y.P. CHEN, Deputy Minister, Ministry of Transportation and Communications (MOTC), Taiwan

Customer-Centric Mobility Payments
Automated fare collection (AFC) systems based on smart contactless media have a 25+ year record of enabling smart integrated multimodal transport ticketing in Asia. This session explores latest developments in several AsiaPacific markets including how public transport and revenue collection has weathered the pandemic, interoperable transport ticketing initiatives, integrating transport and mobility payments with retail payments and “lifestyle” services, and industry innovations in automated fare collection systems and revenue management.

Viewpoint 1: Yuan-Pang CHANG, Engineer, Taipei Department of Transportation [~20min]
Viewpoint 2: Tsuyoshi Nakaniwa, Manager &Tatsunori Hirai, Assistant Manager, Marketing Headquarters Customer Experience Systems Division, East Japan Railway Company (JR East) [~20min]
Viewpoint 3: Samuel Ryan Pradipta, Head of Department - Customer Engagement Division, MRT Jakarta [~20min]

Refreshments, Networking and Expo Viewing

Highway Tolling and Road Pricing
Highway electronic toll collection (ETC) systems and electronic road pricing (ERP) systems offer benefits for governments and road users. Governments benefit from cost recovery through revenues to support road infrastructure, new roads, and investment in transportation-related projects and services. Dynamic tolling and pricing strategies can incentivise drivers to shift travel times/routes, reducing congestion and improving traffic flow. Appropriately designed road charging policies could have a long-term beneficial impact on the environment.

• Can ETC and ERP systems generate sufficient revenue to cover the cost of building and maintaining roads and highways in every market? Does it depend upon customer willingness to pay?
• Is the business model for highway tolling and road charging built on cost recovery and funding, traffic and congestion management, or environmental impact and green policy initiatives?
• Do ETC and ERP systems encourage drivers to change their driving habits and are the results in line with transport policy objectives? Do they create measurable modal shift towards public transport?
• What are some of the latest technology developments for multi-lane free-flow highway tolling and road charging systems? How effective are they at preventing evasion and leakage?
• In free-flow tolling systems, how do drivers pay for their highway tolls and road charges? Do in-vehicle devices typically contain stored value? Or is billing done through backend customer accounts?
• Gantries and other visible infrastructure in ETC and ERP systems lack flexibility and can be an eyesore. With latest technologies how can the visibility of the infrastructure be minimised?
• What are the most frequent challenges in implementing ETC and ERP projects that governments and their partners need to address? How can these challenges vary in different markets across Asia?

Viewpoint 1: Rick Wang, Project Manager, FETC International [~20min]
Viewpoint 2: Paradon Nitaya, Chief Operating Officer, Transcode [~20min]

DISCUSSION: Transport Ticketing and Road Charging
What synergies are there between public transport ticketing and road charging systems? Is it possible to strike a balance between encouraging sustainable transportation choices, promoting efficient road usage, and ensuring affordability and convenience for commuters? Can integrated payments for transport ticketing and road charging provide seamless travel options for customers, for example in park-and-ride applications, or ride hailing, encouraging multimodal shift? Where has road charging been used to incentivise customers to consider alternatives, thereby increasing public transport ridership while managing traffic and congestion? How should transport ticketing and road charging be coordinated in a comprehensive transportation network to support sustainable mobility goals?

Lunch

The Shift to Full Account-based Payments
Mobility payments is transitioning from legacy card-based payments to account-based payments. Account-based enables transport operators to manage their own branded products in tokens, on mobile, in the cloud, in MaaS. It also enables acceptance of customer tokens not issued by, and travel funding sources not managed by, transport operators. This session explains why today there is no full implementation of account-based ticketing (ABT) in a single system covering all products, and why a full account-based system benefits all transport payments.

• What are the limitations of legacy card-based transport ticketing systems that are driving the development of account-based payments to support all fare products in public transport?
• ABT was not invented to accept EMV contactless payments in transit (can be done without ABT). How does a real account-based system support both open-loop and closed-loop payments in transit?
• Mobility payments is changing; why are account-based systems needed to support all fare products (PAYG, return tickets, monthly passes, ...) using any credential, mobile device, MaaS account?
• Why are most ticketing schemes adding account-based systems to accept open-loop payments, but still using legacy card-based systems to manage their existing base of closed-loop transport cards?
• For ABT systems accepting unknown customers (e.g., EMV contactless payments), how is ‘first ride risk’ managed? What are typical reasons for initial declines and how can they be recovered?
• To accept open-loop payments from banks or other third-party payments providers, are there best practices for setting a framework covering risks and liabilities, and processes for customer service?

Viewpoint 1: Michael Walters, Transport Payments Consultant [~20min]
Viewpoint 2: Greg Ellis, Principal, Greg Ellis Consulting [~20min]
Viewpoint 3: Wye-Shun Fong, Technical Director,Bangkok Payment Solutions [~20min]

DISCUSSION: More Ways to Pay for Journeys
Why move from a payments system where the transport card is the source of truth, to one where the customer account is the source of truth? What are the range of linked credentials that customers could use in an account-based transport payments system? Are multiple customer account funding sources possible for different credentials? What about family accounts with credentials for different family members? How does a full account-based payment system manage concessions and subsidies? Why is this the only feasible way to offer cloud-based mobility services such as MaaS? Why does it enable lower cost introduction of new services and better management of transport data? So why is there no such full-blown account-based transport payment system implemented anywhere in the world today?

Refreshments, Networking and Expo Viewing

Analysing the Business Case
Open-loop payments offer convenience and flexibility to passengers by allowing them to use their existing contactless credit or debit cards, mobile wallets, or wearable devices to pay for public transport fares - eliminating the need to top up transport cards or purchase tickets. While the benefits to passengers that already have EMV contactless bank cards may be clear, the pros and cons of accepting open-loop payments in transit for PTAs, PTOS and transport ticketing schemes require more analysis and consideration.

• Open-loop payments can enable reduced fare media costs, top up costs and TVM costs. How do these savings stack up against costs of EMV compliance, acceptance devices and risk management?
• Standardised EMV contactless payments devices and infrastructure should be lower cost than proprietary transport card systems - but will operators need to run both systems in parallel?
• White label prepaid EMV contactless cards could enable a single system, and solve challenges of unbanked adults, children and concessions. Why are few PTAs/PTOs pursuing this approach so far?
• There are now sophisticated solutions for accepting open-loop payments in transit. How do they manage complex fare structures, peak/off-peak fares, distance-based fares, passes and concessions?
• Operators accepting open-loop payments in transit effectively become a merchant in the consumer payments business. What do they need to know about risk sharing, and merchant service charges?
• Other than EMV contactless payments, what other open-loop payment solutions, such as non-bank mobile wallets, have been adopted in transport? Do they have similar benefits and challenges?

Viewpoint 1: Ryan Koo, Director of Contactless and Urban Mobility, Visa Asia Pacific [~20min]
Viewpoint 2: Yong Yik HOH, Senior Principal Engineer, Fare System, Land Transport Authority, Singapore [~20min]
Viewpoint 3: Alban Jalabert, Services Director - Revenue Collection Systems; Gordon Lee, Sales Manager - North Asia, Revenue Collection Systems, Thales [~20min]

Discussion: Deciding the Business Case
The business case for EMV contactless payments in transit depends on several factors (likely to also apply to other open-loop payment solutions). Examples:

1 - the target market needs to have enough customers holding EMV contactless payment cards, ideally with strong adoption and usage in the retail environment.
2 - customers paying for transit fares with EMV contactless payment cards need to get a better deal than they would do using other fare products.
3 - the implementation of EMV contactless payments acceptance in transit hasto meet the needs of all stakeholders (customers, card issuers, operators).
4 - transaction acquiring costs (merchant service charges) need to be similar to, and preferably lower than, those for existing closed-loop transport card products.

These will not be the only factors. Will long-term savings in revenue collection and infrastructure costs be achievable? Can all stakeholders reach an agreement on risks, liabilities, fees/costs, customer protection? If all conditions are met, will most transit authoritiessee acceptance of open-loop payments as an important option for improving convenience for customers? Even if the open-loop payments business case excludes some customers - such as those who are unbanked, children, or entitled to concessions- for which a separate system, fare products and transport payment solutions are required?

Introduction to day two
A recap of day 1 discussions and introduction to day 2 conference sessions and objectives.
Greg Pote, Chairman, APSCA

Getting Customers On and Off Public Transport
Today, most customers paying at mass transit gates and validators use operator-issued contactless transport cards. Increasingly, in some markets, they can now also use EMV contactless payment cards. Either way, in future customers are increasingly likely to make fare payments using a smartphone. Mobile transport ticketing typically uses NFC, but QR codes are popular in some Asian markets. Hands-free options using BLE1 , UWB1 or even biometrics are some of the future options for optimising customer convenience and passenger flows in mass transit.

• There are millions of contactless transport cards issued around the world. What are the options for PTAs, PTOs and ticketing schemes to offer these products to customers on their mobile devices?
• Mobile wallets can offer e-money (prepaid2 ), EMV virtual cards, real-time payments, and even CBDCs1. Are all these wallet solutions feasible for paying at gates/validators? (Do they all have access to NFC?)
• OEM-Pay wallets offer a smooth path to mobile for EMV contactless payments but only support a few major closed-loop transport card brands. How can other operators overcome this obstacle?
• Mobile QR code payment solutions for pay-at-gate and ticket purchases have been launched in several Asian markets. What is the outlook for QR codes versus mobile NFC in transit ticketing?
• What factors are driving development of "hands-free" Bluetooth-based ticketing initiatives in public transport? Are they focused on using CIBO over BIBO? What have been the results so far?
• How do smartphone-based location services enable new approaches to public transport ticketing? Are they sufficiently accurate in all scenarios and what has been the feedback from customers?

Viewpoint 1: Christopher (Taehoon) Kim, Senior Manager - Global Marketing and Business, Tmoney [~20min]
Viewpoint 2: Anders Mellqvist, Master Engineer, Sony, FiRa Consortium [~20min]

DISCUSSION: Improving Customer Convenience
Customer adoption of mobile transport ticketing is increasing. OEM Pay wallets provide a seamless path for customers to make EMV contactless payments using their smartphones (and wearables). But that option is only available for the largest closed-loop transport card schemes. How can all the other PTAs, PTOs and ticketing schemes enable customers to use their transport ticketing products on mobile devices? Mobile wallets with QR code payments have seen success in China, and some other Asian markets, but require changing ticketing infrastructure. They also reduce passenger flow through gates. Is there a long-term future for QR codes in transit? Non-gated “Handsfree” public transport ticketing trials have been aimed at reducing travel congestion and keeping passengers moving while improving passenger convenience - what are the results so far and are they using BLE or UWB? Other BIBO/WIWO1 approaches for non-gated applications can use smartphone location-based technologies which make it possible to charge customers automatically as they board a bus or train. But will customers welcome the touchless experience and hands-free convenience if they realise they are being tracked remotely?

Refreshments, Networking and Expo Viewing

Integrating Transport Services and Payments
Customers already get all their information online, in Asia most of it from their mobile devices. Whatever they think about using their mobile device to pay at the gate, they already want to manage their travel information and options, journeys and transport payments on mobile devices. The future of transport services, transport data and transport payments will be dominated by mobile. This session looks at how mobility payments will be embedded in operator or third-party smartphone apps and integrated with cloud-based transport services.

• Smartphones and cloud-based ticketing can transform customer engagement and use of public transport. How can operators shift their interactions with customers to self-service?
• Solutions to top up contactless transport cards generate significant costs for operators. How can they replace these costs with solutions for customers to top up their own cards using their smartphones?
• As transit authorities shift to full account-based payments with all data in back-end customer accounts, how will connected smartphones enable customers to manage their transport ticketing accounts?
• How can public transport operators leverage third-party transport apps to make it easier for customers to search for public transport options, find routes and pay for their journeys?
• Ride-hailing services with transit options, mobile ticketing apps with ride-hailing, trip planners with transit payments - how are smartphones and the cloud converging and embedding mobility services?
• How can smartphones and the cloud help to connect the new first mile/last mile mobility providers with public transport options to enable door-to-door journeys?

Viewpoint 1: Mitsushige Suzuki, Senior Manager, Business Development, Secure Technology & Solutions, Sony [~20min]
Viewpoint 2: Andre Perchthaler, Segment Head, MIFARE, NXP Semiconductors [~20min]
Viewpoint 3: Dr. Chien-Pang Liu, Deputy Director-General, Transportation Bureau of Kaohsiung City Government [~20min]

DISCUSSION:  Seamless Multimodal Mobility Payments
Legacy multimodal smart transport ticketing was about facilitating payment across multiple public transport modes. Now customers increasingly want to make (and pay for) door-to-door journeys that include first/last mile enabled by a growing number of private mobility providers and micro-mobility companies. What are the best solutions to facilitating payments for journeys across this expanded universe of public and private transport providers? The new mobility providers and micro-mobility companies typically use cloud-based mobility payments and billing accessed via smartphone apps. They may not fit into the legacy card-based public transport payments model. Would account-based transport payments managed through connected mobile devices make it easier to offer customers “joined-up” transport payments across all public and private mobility services?

Lunch

Personalised Sustainable Mobility
Mobility-as-a-Service (MaaS) is a concept that integrates various modes of transportation into a single platform or service, providing users with a seamless and comprehensive mobility experience. It aims to simplify travel planning, booking, and payment processes by offering a range of personalised transportation options through a single app or platform. MaaS is supposed to provide users with a convenient, flexible, and sustainable alternative to private vehicle ownership, improving transportation efficiency while reducing traffic congestion and lowering emissions.

• If MaaS relies on a digital platform that integrates end-to-end trip planning, booking, e-ticketing, and payments across all modes of transportation, public or private, then who should provide the platform?
• MaaS solutions rely on APIs, protocols and data exchange between multiple mobility providers. How can participating mobility providers be confident their sensitive data is not shared with competitors?
• Should MaaS be driven by government, by public transport authorities, by commercial organisations such as software companies that provide journey planners, or by non-profit special-purpose entities?
• A MaaS scheme needs to provide value to its stakeholders, but how do we ensure that Maas journeys are user-centric instead of serving the commercial interests of competing mobility providers?
• Some of the latest data-driven, location-sharing smartphone apps already offer some pieces of the puzzle. What implementations that have connected mobility providers so far suggest best practices?
• Increasingly sophisticated and connected customers want more travel options, more convenience and a better customer experience - does the original concept of MaaS really meet these needs?

Viewpoint 1: Dr. S.K. Jason Chang, Vice President, Eastern Asia Society for Transportation Studies, Director, Advanced Public Transport Research Center, National Taiwan University [~20min]
Viewpoint 2: Jason Su, Manager, Department of Strategic Planning, Gogoro [~20min]

DISCUSSION: Are We There Yet?
MaaS aims to provide transport through a real-time personalised service model that integrates all mobility choices and presents them to the customer as a holistic solution that enables them to make a seamless end-to-end journey and pay for that journey. Most of that sounds similar to any journey planning app (or even Google maps) except for the payment. Is it only payment that differentiates journey planning apps from a MaaS app? In London, Citymapper will show you all possible journey options with the costs of those journeys but won't offer you a payment option. But that's not a problem because everybody either has an Oyster card or an EMV contactless payment card. Even if the journey option includes an e-bike trip, the customer can pay with the e-bike app. If a single payment option is only available over public transport with micro-mobility providers collecting their own revenue - is that really a problem? If it’s not, then do we really need MaaS??

Refreshments, Networking and Expo Viewing

Subsidies, Concessions and Incentives
Modal shift towards public transportation can create a more efficient and environmentally friendly transportation system. Transport authorities can employ a variety of strategies to encourage customers to choose public transport over private vehicles. Longer term strategies include increasing the convenience, quality and accessibility of public transport for customers. Shorter term strategies could include reducing transport fares for customers. Whatever the strategies, they must also be sustainable to provide a long-term modal shift.

Case Study: Nora Tang, General Manager, Technical Department and International Projects, Octopus Cards [~20min]

Case Study: Kent Chen, Vice President and Head, Special System Business Group, MiTAC Information Technology Corporation [~15min]

Industry Discussion
This industry discussion explores sustainable options for increasing modal shift towards public transport. Long-term strategies such as increasing the quality and service level of public transport itself; and providing simple, convenient and integrated mobility payments to enable seamless travel, are longer term strategies that can require significant capital investment. This discussion explores shorter- and medium-term initiatives to increase public transport ridership which might be implemented more quickly and with lower costs.

• What are some of the successful strategies for increasing the convenience of public transport, compared to private transport, that have encouraged customers to choose public transport?
• Does making public transport accessible to a wider range of passengers increase ridership? Does interoperability across public transport drive modal shift? Is this a longer-term capex-intensive project?
• What are effective solutions to the first mile/last mile challenge in public transport, that can enable door-to-door journeys, bring people closer to public transport and increase ridership?
• During and after the pandemic, some governments have implemented public transport subsidy programs designed to increase ridership. What have been the results of these initiatives?
• How do these government transport fare subsidies differ from existing discounts, concessions, monthly passes and fare capping products that transport operators are already offering?
• What are some of the technology options for implementing an interoperable and sustainable transport fare subsidy program across an entire population of public transport users?
• Is it easier and more cost-effective to implement the fare subsidy into existing transport payment products already available? Or to launch new products specifically designed for the subsidy?
• Is it quicker and less costly to lower public transport costs for customers by providing them with a monthly rebate instead of discounting fares? How has this been implemented?
• Can public transport fare subsidies offered to all passengers also be made available to customers using open-loop payment products in transit? For example, through fare capping programs?

Industry Discussants:
Speakers, Government Transport Authorities, Subject Matter Experts
Contributors: All Delegates
Facilitator: APSCA

End of MPAP2023