making open loop payments work for transit · 2/5/2014 · • the movement from closed-loop afc...

SCA Payments Summit 2014

Making Open Loop Payments Work For Transit Understanding Account-Based Fare Collection Solutions Speaker: Nick Halden, Solutions Architect, Vix Technology (USA)

Transforming the way people connect and commute

Overview

•  Key Terms •  Advantages of account-based open systems •  Challenges of closed systems •  Vix eO at work in UTA


Key Terms

•  Smart Card •  Open Loop System •  Closed Loop System •  Open Payment •  Card-based system •  Account-based system •  Third Party Issued Contactless Card (TPICC) •  Bank-Issued Contactless Card (BICC) •  Prepaid Card (PICC)


Evolu<on of Payment Systems •  The movement from closed-loop AFC systems to account-based

open payments is happening now.

•  Account-based, open-payment systems reduce operating costs, improve rider experience, and provide actionable analytics for system optimization.

•  The high ROI on productized AFC solutions relieves Agency resources for other operating activities.

x

coins & cash

tokens magnetic stripe

Card-based

Account-based


Account-‐Based versus Card-‐Based Systems •  Account info stored in back-office vs on card •  Processing in back-office vs on the validator •  Open payments/BYO media vs. closed loop

Account-Based Systems: •  Simplify the front office •  Flexible •  Require Greater Security


Advantages of Account-Based Systems

•  Faster Validation •  Back Office Transaction

Processing •  Tap/Trip •  Billing/Payment

•  Reduce Reliance on Cash and TVMs

•  Lower Card Management and Issuance Costs


Challenges With Card-‐Based Systems •  Manage a proprietary currency •  Card issuance and retail distribution

•  TVM, Retail revalue •  Added customer service support •  Less flexibility in fare policy


Flexibility is the Future

Third Party Issued Cards • Institution Cards • Agency Cards

Bank Issued Contactless Cards • AmEx, VISA, MasterCard, Discover

Smartphones • Google Wallet, ISIS • Host Card Emulation (HCE) • Mobile Ticketing

Pre-Paid Cards • Agency Branded


Case Study: Vix eO at UTA

•  Vix developed first open payment system in 2009 •  42M passenger rides per year •  Hosted fare collection system

•  Affordable •  Secure •  Open

•  Award-Winning •  True account-based solution •  Current supported ticketing types (ISO-14443/

ISO-15693) •  Bank issued contactless credit and debit cards (all major brands) •  Institutional contactless (universities, corporations, churches) •  NFC/Mobile wallets •  Pre-paid, stored value


Case Study: Vix eO at UTA •  Iterative development process •  Security features maintained by issuer (not transit agency) •  No longer a proprietary obligation, eliminates or eases:

•  Customer service •  Security •  Distribution

•  Diversity of fare products •  Pay-as-you-go •  Period pass •  Zone based •  Distance based •  Multi-ride •  Concessionary •  Multi-modal •  Transfers


THANK YOU

making open loop payments work for transit · 2/5/2014 · • the movement from closed-loop afc...

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