Welcome and opening address
Payment Systems Department, The State Bank of Vietnam
Transport & ICT, World Bank Group
Introduction to this year’s forum, theme and objectives, business and technology areas to be discussed.
Greg Pote, Chairman, APSCA
Transport Payments in 2018
A Perspective on Commuter Travel in the UK
One of the leading operators in the UK discusses how technology is transforming the way that customers engage with and use public transport, and how moving passengers to a low-touch engagement offers new ways to optimise the retailing of transit and transport services. This is illustrated through a daily commute.
- Moving people from ticket office to self-service to app to ibeacons
- The journey through smart cards, barcoding and contactless payments
- Innovations in customer information services
- Account-based ticketing (ABT): a case study from Brighton
David Maitland, Business Unit Director and General Manager, Go Ahead Retail Services
National Interoperability for Transport Payments in Japan
In 2013 Japanese operators launched national interoperability across all public transport payments systems. JR East explains what was required to achieve this and the outcomes over the last 5 years, including benefits for customers and impact for operators. The presentation also covers recent developments in transport ticketing in Japan.
- Planning, agreement, design and development to achieve national interoperability
- Inter vs intra region interoperability, impact on number of passengers and journeys
- Enhanced auto top-up to support customers for longer commuter journeys (e.g. Shinkansen)
- Cloud-based mobile acceptance of Suica retail payments using standard smartphones
Tomohiko Umekawa, Deputy General Manager, IT & Suica Business Development Headquarters, East Japan Railway Company (JR East)
Makoto Nishigoori, General Affairs Department General Affairs Section Manager, PASMO
Accepting Third Party Open-Loop Payments
Considerations for issuers, schemes and operators
Accepting open-loop payment products, such as EMV contactless cards or mobile wallets, for public transport fare payments can deliver improved convenience to customers. Offering customers additional fare payment options can also benefit both transport operators and transport ticketing schemes as well as the third-party payment product issuers but there are commercial and practical considerations to be addressed. This session highlights benefits and considerations for accepting third-party open-loop payment products as fare media.
- Accepting third-party fare payments is a significant trend in public transport ticketing. What benefits does this offer to customers, to payment product issuers, and public transport operators?
- For customers that do not have a bank account, who would be responsible for issuing prepaid EMV contactless cards to those customers: banks, transport ticketing schemes, or other organisations?
- What is the impact of accepting EMV contactless payments or mobile wallets on the acceptance devices in public transport schemes, on fare transactions and processing, and on risk management?
- What are the range of possible open-loop third-party payment media that transport operators could accept? Which would be easiest to accept, and which are likely to be most popular with customers?
- Public transport ticketing systems typically have complex fare structures and multiple fare concessions that need to be offered to customers. How can these be provided by accepting third-party payments?
Viewpoint 1: Nguyen Quang Minh, Deputy CEO, Research and Development, National Payment Corporation of Vietnam (NAPAS) [~20min]
Viewpoint 2: Jamie Fu, Director, Business Development, Mastercard [~20min]
Viewpoint 3: Mick Spiers, Vice President, Revenue Collection Systems, Asia Pacific, Thales [~20min]
Discussions: Preparing to accept third-party fare media [~30min]
What is the business case for open-loop payments in transit and for transport authorities accepting third-party fare media? Will it be commercially feasible, or socially acceptable, to implement acceptance of EMV-based fare media in markets where many public transport customers are unbanked or underbanked? What are the commercial and technical issues for integrating legacy transport ticketing systems with EMV devices/QR code readers, and upgrading ticketing systems to support both account-based and card-based ticketing? What are the respective responsibilities of transport authorities accepting open-loop payments, banks issuing EMV contactless cards and other parties issuing open-loop mobile wallets? Is there a need for national coordination and guidelines for transport authorities accepting open-loop payments as well as the providers of open-loop payment products which
Evolution of Account-based Ticketing
The shift from media-based to server-centric fare collection
Extensive coverage of the Transport for London (TfL) scheme may have encouraged the idea that account-based ticketing (ABT) is nothing more than accepting EMV contactless cards for fare payments. The reality is, account-based ticketing could be implemented with closed-loop contactless cards, with operator or third-party mobile payment products, without accepting EMV contactless cards for fare payments, and in off-line scenarios. This session explores different ABT scenarios being implemented today and why ABT is likely to become the future of transport payments.
- In an ABT system the fare media is only an identifier linking customers to their back-office account. EMV contactless cards are only one type of fare media. What some others that could be used?
- How can closed-loop contactless transport cards support account-based ticketing, why are they likely to be used for most ABT transactions and how does this benefit transport operators?
- Is there a sufficiently strong business case for stand-alone EMV ABT systems and back-offices as add-ons to existing card-based ticketing systems without fare integration into a complete ABT system?
- Closed-loop transport cards are still the highest performance transit fare media except for the need to load cards with value, tickets etc. Are ABT systems the only solution to this problem?
- How does a complete account-based ticketing system make it easier to deliver digital customer services so that passengers can purchase and manage transport products online and over mobile devices?
Viewpoint 1: Silvester Prakasam, Head of Business Unit, Fare System, MSI Global [~20min]
Viewpoint 2: Paradon Nitaya, Business Development Director, Bangkok Payment Solutions [~20min]
Discussions: Transitioning to complete ABT systems [~30min]
ABT systems in Asia appear more likely to include both open-loop and closed-loop fare media acceptance with a growing variety of fare media types that will include QR codes, mobile and BLE in addition to transport and bank cards. Closed-loop transport cards are essential for complete account-based ticketing unless the plan is simply for a full-fare PAYG add-on to support tourists and itinerant customers. A complete account-based ticketing system where the transport authority is the back-office and manages all the payment sources connected to it can offer PAYG, season tickets (period passes), concession passes and entitlements to a complete customer base. An add-on ABT solution designed to accept EMV contactless payment cards helps to solve the costly single journey problem and support tourists and itinerant customers but will not support concessions or the complete customer base.
Transport Payments Policy & Strategy
Pathways to integration and interoperability of transport payments services
Several important mass transit projects developing in HCMC, Hanoi and Danang, for urban metros, extended BRT/bus systems as well as toll roads, are currently set to deploy different electronic ticketing systems without integration of transport payments or interoperability between transport modes. In the world’s fastest developing region, this is not the first occurrence of this scenario. This session aims to explore options for solving the problem of ongoing public transport projects in Vietnam [or any market] that plan to deploy different payment solutions.
Viewpoint 1: Eric Turner, Transport Analyst, Transport & ICT Global Practice, World Bank Group [~20min]
Viewpoint 2: Hiroshi Anzo, Senior Project Formulation Advisor, Japan International Cooperation Agency (JICA) - [invited] [~20min]
Viewpoint 3: Sangmin Hyun, Senior Sales Representative, Korea Smart Card Co., Ltd (KSCC) [~20min]
Viewpoint 4: Ting Chen, President EasyCard Corporation [~15min]