The Growing Impact of Bank Cards in Public Transportation

Soner CASURVP, South East Europe2010, Utah

nda

Open Payment in Public Transportation

VeriFone’s Transportation Solutionp

Case Study –Bank Asya City Card ProjectCase Study –Bank Asya City Card Project

Open Payment in Public TransportationPublic Transportation

ution to Micropayment

ropayment Market - $724 Billion

placement of cash with electronic payment.

t tl T h l t t ntactless Technology penetrates ropayment.

olution to City Cardolution to City Card

nsportation is the backbone of the City Card

opayment Driver Markets

ansportation is starting point to penetrate into micropayment

ansportation card is the backbone of the city card

y Cards with payment asset create huge revenue

nsit is Changing

ransportation is starting point to penetrate into micropayment c opay e t

ayment cards became widespread in transitystems with Contactless technology

ransportation cards create huge revenue.

Worldwide public transit fare collection is $50–$100B per year

assenger prefers to use contactless payments or transit environments

• Prefer plastic card instead of carrying cash

eople will travel all around the world with ontactless VISA/MasterCard.

olution of Transit Fare Payment

Convergence between banking and transit

Open System

The most. Closed-loop

contactless

p y

Tomorrow

TodayClosed-loop

magnetic

100+ year span

Tokens

Coins

of Bank Cards on Transit Systems

nsportation is the primary driving force for Banks nvolve in Micropayment.

bank in trasnportation business will dominate tactless card world

of the Wallet Opportunitypp y

paid contactles cards are an option for the unbanked ulation

rease the card penetration and customer numbersrease the card penetration and customer numbers

bal interoperability is a necessity

sted party

ity to manage high transaction numbers

ential Benefits of Open Payment

minate the extra step of buying transit card or ket

re convenient for infrequent riders and visitors

itive effects of outsourcing card management and uing parts to banksuing parts to banks

ducing of aquisition cost

nsit may benefit from marketing and customer vice.

rease usage of public transportation

tems become more transparent and measureabletems become more transparent and measureable

VeriFone’s VeriFone s Transportation S l tiSolutions

Fone – Leading the way in Open Payment

Fone’s leadership in deploying contactless paymentptance systems makes it the perfect partner toplement Banks leading position in the transportationplement Banks leading position in the transportationket.

Motivated market to accept bank card to “differentiate VF’s nique value”

upport banks to achieve their goals and follow the convertion o open systems in transit payment

anks ask VeriFone to be solution partner in transportation p projects

anks will be using shared validator from VeriFone

Municipalities changed requirements to accept bank cardsMunicipalities changed requirements to accept bank cards

eriFone offered long term rental & revenue sharing model

d to End Transportation Solutions

e Scope of Automated Fare Collection System

C Management Software Components

CardM t

Contract M tReporting Settlement

Cl i

alidatorApp.

urnstile Accounting&Mgt MgtReporting Clearing

CostumerService

IntegrationMgt.

urnstileApp.

iosk/VMApp.

&Finance

Human Resources

AFCManagement Software

Solution

Service Mgt.

FieldAppl.

Transport.Companies

erchantPOSApp.

spector

Banks

MerchantMgt.

Station &

Lines

FieldDevices

Mgt.Tariff

spectorApp.

VehiclerackingApp.

3. Party Comp.Systems

................

Centralized Management Softwareart Buss.App.

d Devices

3.PartyApp.

d Devices App.

e Collection Hardware

M GO V lid t V GO V lid O dMxGO Validator VxGO Validator Outdooroo

r

Indoor

outd Turnstile

• Mx870 • High-end Product• Multimedia Platform

• Vx700 • Low Cost• Supports zone system and

e

pp ydistance based pricing

s–Tram-Metro-Ferry Bus-MinibusTram-Metro- Ferry

re Collection Hardware - Validator

M GO V lid t V GO/ECO V lidMxGO Validator VxGO/ECO Validator

Supports all card types• Supports all card types• EMV Certified Validators• GPS Integration• H&V Mounting Options• Built-in power control card

RS, WiFi, 3G , Thermal printer

per Ticket Acceptor

screen touch keyboard

•GPRS

•On-board GPRS Class 10, Tri Band

• Built in power control card• Vibration Elimination Kit• USB Interface• Environment: • Water, Dust, Vibration

mory card reader

chargeable battery

-bit 200 MHz Processor

: Embeded Linux ARM 9

•On Board Power Supply

•DC 8V ÷ DC 30V

•Built-in buzzer for tones, prompts

mory: 64 MB SDRAM & 64 MB Flash

play : 16 bit color, ¼ VGA

lt-in media player

eakers: Built-in speakers

•Visual LED Indicators

•An over voltage and a load dump protections

provided

•Operating tº - (-35 Cº ÷ + 85 Cº)Operating t ( 35 C ÷ + 85 C )

rd Sales & Loading

hMx Kiosk Merchant POS

Qx110

Floor Type Wall Type

• Multimedia Platform+Contacless Payment Att

ende

d

Vx510Multimedia Platform Contacless Payment

• Barcode Reader/Printer/Card Dispenser(FT)

• Metal / Plastic Body

A

• UPS & GPRS, Ethernet, Wi-Fi – (FT)

Credit Card Cash + Credit Card

Case Study

Bank Asya City Card Projecty j

Bank Asya - Turkey

• B k A t bli h th 6th i t fi h • Bank Asya was establish as the 6th private finance house in 1996

• Bank Asya is a mid range bank in Turkey.

• Its credit card market share is 3.04% (in terms of creditcard number) and 10th among all the banks in Turkishmarket.

• Launched in early 2008 as a major extension to Bank • Launched in early 2008 as a major extension to Bank Asya’s ASYA DITCard.

• Bank Asya created a complete city card solution by using the contactless EMV technologies ie Visa Paywave & MC g yPaypass.

Scope of City Card Project

• Creating a city-card concept that gives the opportunity to the customers to use the same card not only for shopping but also in

• transportation, (4 cities in Turkey; Maras, Balıkesir, Bolu and Karabuk)• car parks,

• toll-payments, (Boshporus bridges and all tollways)• vending machines,

• stadiums,

• movie theathers,

• as campus card/student identification card, (Karabuk University)• as library card,

• Supplying a fast, effective and reliable transportation system by using contactless EMV chip cards and banking infrastructure.

• Creating a standardized global solution instead of local solutions.

• Enabling the system to offer different campaigns and loyalty options.

Having a contactless credit card is not enough for a Bank to convert

Prerequisites

Having a contactless credit card is not enough for a Bank to convert Bank Card in to City Card.

Covering all customers with the options:

• Contactless Credit Cards

• Contactless Prepaid Cards

• Contactless Prepaid Special Cards

(students, old-aged, etc.)

• Contactless Prepaid Anonymous

Cards (reloadable)

Achivements

• Its contactless card market share is %32

• In terms of contactless credit card number is 2nd • In terms of contactless credit card number is 2nd among all the banks

• Bank Asya is holding first place in terms of contactlessterminal number (% 41 market shares)terminal number (% 41 market shares)

• Bank Asya started to issue just contactless cardsinstead of conventional cards.

• 1 000 000 C i l C di C d i i 11• 1.000.000 Conventional Credit Cards given in 11 years- 500.000 DIT Cards given in 2 years

• In December 2009, total revenue of Bank AsyaContactless Cards are equal to the revenue collectedContactless Cards are equal to the revenue collectedfrom the rest of contactless bank cards in Turkey.(Interbank Card Center (BKM))

Future Strategies on City Card Projects

•Plan to increase its market share in 3•Plan to increase its market share in 3-

4 years by issuing 2.000.000 new

credit cards

•In order to support City Card Projects

the %75 of Credit Cards is going to be

issued as Contactless Credit Cards.

•Target to increase its rank from 10th

to the 6th Bank in Turkish market.

Thank You Thank You ...