nihit jain - american public transportation association€¦ · key presentation take-aways...
TRANSCRIPT
Evaluating Different Business Models and Pricing Approaches for Mobile Ticketing
Nihit Jain
Associate, Transit Technology/Data Consultant
Philadelphia, PA
Outline
• Key Payment Takeaways
• Introduction to Mobile Ticketing
• Transit Mobile Payment Industry
• Mobile Payment Costs
• Case Studies
• Key Takeaways
Key Presentation Take-Aways
• Think about both, Upfront Costs and Ongoing Costs
• Don’t forget about penetration rates and transaction costs
• Mobile payment is only one part of your fare collection strategy
• Think about fare policy and where you want to go long-term
• Choose carefully between visual validation and onboard validation
Transit Mobile Payment How do you define it?
• Mobile phone acts as Fare Media
• Fare products available through mobile application, web portal, retail outlets
• Validation on phoneoVisualoOnboard (Barcode, NFC, BLE)
APTA 3-Day
Valid Until:Sep 18, 2019 13:00
52D3
Transit Mobile PaymentHow important is it?
• Tell us what you feel about mobile payments
• https://www.menti.com/6c47j6ttbc
Transit Mobile Payment Industry What is their historical strength?
Parking Systems
Bus Systems
Multimodal Systems
Mobile Payment Systems
Mobile Payment CostsHow do Vendors make Money?
Vendor CostsCapital Annual
OngoingTransaction
FeesMerchant
Fees
• Validators: $1-3K• Communications:
$100-500• Integration:
Highly Variable
• Hosting: $0-50K• Maintenance: 5%
of HW• Support: $0-100K • Communications:
$50-100/vehicle
• Vendor Service Fee: 3-8%
• Merchant Setup Fees: $10-50K
• Interchange Fees: 10-40cents
+ 1-2.5%
Mobile Payment CostsWhat else do Agencies Spend on?
Agency CostsMaintenance Customer
SupportIT / Finance Marketing
• Validator Maintenance
• Call Center / Customer Service
• Finance / Revenue Management
• Marketing Staff• Advertising
Mobile Payment CostsWhat defines your long-term costs?
• Let’s look at some (theoretical based on real) business models, cost numbers, and their impact on the agency finances
• https://tinyurl.com/y5jacv9f
Case StudyHampton Roads Transit
• Finding a pathway from Mobile to a Systemwide Alternative
• Some Lessons• Onboard Validation• Device Management
Mobile Ticketing Pilot Phase 1
(Visual Validation)
Mobile Ticketing Pilot Phase 2
(Onboard Validation)
Full System Rollout (Account-based
System)
2018 2019 Future
If Successful
Case StudyDASH
• Rapid implementation needed due to WMATA Station closures
• Visual validation rollout in short timeline.
• Potential for agencies to piggy back on contract for regional approach.
Case StudyGreater Dayton/RTD/Spokane Transit
• Desire for longer term replacement of full fare system and move away from cash payments
• Multimodal payments / MoD / MaaS
• Institutional partnerships (e.g. Universities, Retailers)
Sourced from Transit App, https://medium.com/transit-app/
Business Models in the FutureSo what might change in the Future?
• Ticketing through other third party apps
• How do they various parties make money?oCut of overall pieoAdditional demand
Sourced from Transit App, https://medium.com/transit-app/
Key Presentation Take-Aways
• Think about both, Upfront Costs and Ongoing Costs
• Don’t forget about penetration rates and transaction costs
• Mobile payment is only one part of your fare collection strategy
• Think about fare policy and where you want to go long-term
• Choose carefully between visual validation and onboard validation
Thanks!
For any questions, please contact:
Nihit Jain
(617) 450-0701 x 51644