transit applications verifone · mifare, felica bank card payment contactless cards & readers...
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Transit Applications
VeriFone
Emrah Guven
Business Development Manager
South East Europe
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Mobile ApplicationsTrends in Transit Payment1New Solutions2Case Study 1 ; Bank in Transit3Case Study 2 ; City Card4Key Success Factors Learned5
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Mobile ApplicationsTrends in Transit Payment1Solution2Case Study 1 ; Bank in Transit3Case Study 2 ; City Card4Key Success Factors 5
New York City; 8 million passengers a day subway & bus
Three largest mass transit systems (Tokyo, Moscow and New York) move around 7 billion passengers a year –equivalent to the worlds population
Paris Metro moves 1.4 billion passengers annually
(1.9 billion with RER)
Transportation Projects Globally
North America; 13B annual journeys
Trends on Transportation
• After 1990, significant investments in contactless smart card-based AFC systems.
• Transportation cards create huge revenue
• Future Investment: with using same system even NFC payment is supported.
Cash
Closed, Proprietary Transportation Cards
MiFare, FeliCa
Bank Card Payment
Contactless cards & readers
Cell phonepayment schemes
Tokens
Paper tickets
Some Transportation Hot Projects
SloveniaRomania
Croatia
MoldovaSlovakia
Bosnia and Herzegovina
Bulgaria
Greece
Albania
Turkey
MontenegroTurkey Kosova
Serbia
Macedonia
Cyprus
Israel
Evolution to City Card
• Reason; City Cards with payment asset create huge revenue
• Banks want revenue from transportation & Micropayment
• City Cards become more doable with the contactless prepaid solutions
• Micropayment require more secure cards & transactions
• Revenue Resources; Smart City Cards are Closed Systems and with this feature enables “Discount” models to be applied to retailers. Card Processor company creates a business model to get discount when the card used in the merchant. Some part of the discount is reflected to card holder when card is a prepaid card. Due to nature of prepaid “float rate” becomes attractive.
• Strategy; Sophisticated process to convert card to city applications
• Result: Transportation Cards City CardTransportation cards evolved into City Cards, now banks issue those
• Micropayment Potential; Payments less than 5$ ; 1.32 trillion $ in USA, 2003
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Mobile Applications
Solution2Trends in Transit Payment1
Case Study 1 ; Bank in Transit3Case Study 2 ; City Card4Key Success Factors 5
Key ManagementBackoffice (key turn solution)
Terminal ApplicationCard Application
Intelligent ReportsDeployment
Top-up (credit loading)Full Service Offering with
ticketing and operation managementValue Added Applications
Switch CenterInstallation
Training
Business AnalysesSystem DesignCard Mapping & Design
ValidatorTerminalsCredit Loading TerminalSelf Service loadingReadersPaper Ticket readers
SoftwareConsultancy
Hardware Services
Unsurpassed responsiveness and technical expertise to
deliver the best combination of technology, products and support to our customers.
New Transportation Solutions & Functions
Automated Fare Collection Systems
Products used in new Mass Transit Payment
Self Service Top-Up PIN Entry Cash@Merchant
Payment at public transport Payment @ Taxi
Turn Stiles
Ticket Machines
Taxi ; NewYork & Philadelphia Taxi
SMART AFC SYSTEMS
Problems and issues about bank credit cards
• Not-on-Us transactions
• Inter Charges
• Transaction fee
• One time Investment
BANK 1 BANK 2 OPERATOR
Bank Cards
Paper tickets
Application Manager at Terminal reads card type and determines its issuer
Bank 1 card sends to Bank 1 Host
Bank 2 card sends to Bank 2 Host
MiFare card sends to Closed Systems
Paper Ticket reader sends data to related operations center
Operations Center gets all transaction details and creates a consolidated end-of-day reports, revenue split between the parties
NFC
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Mobile Applications
Solution2Trends in Transit Payment1
Case Study 1 ; Bank in Transit3Case Study 2 ; City Card4Key Success Factors 5
First in Europe
One of the few in the world
The ultimate in contactless
payment technology
The most advanced card
AsyaCard DIT
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Case : Benefits to a Bank : Bank Asya
About Bank Asya
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Growth Strategy in Credit Card Business
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Contactless Card Market in Turkey
0
50.000
100.000
150.000
200.000
250.000
Jul.08 Aug.08 Sept.08 Oct.08 Nov.08
ASYACARD DIT
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Contactless payment techonology has been launced in 2006.
Total number of contactless payment cards
600.000
AsyaCard DIT
260.000 - % 43 market share Market YearOverYear Growth Rate : 20%
Bank Asya rate : 100%
Multiplied by 5 the Market Growth !
Convenience:
Faster transactions, shorter queues
Easy clearance of customer cashbacks
Less usage of change
Decrease in cost of transations and workload
Security:
EMV enviroment:
Benefit from standart EMV card/terminal autentication and risk management rules
Zero liability
Protection like traditional payment cards
Benefits for merchants:
Shortens the time customer waiting queues
No more cash handing
Speed of transaction
Reliable, no failed read
Increased feeling of security
Card remains in hands during transaction
Easy pass through motorways and highway toll counters with KGS (Toll payment System)
Replacement usage ofr tickets in local transaciton facilities (bus, subways, ferry etc. Where applicable)
Benefits for customers
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Customers Targeted
All customers who use credit card
Customers who do not want to carry change in their wallets or pockets for their
small transactions
Customers with frequent usage of motorways, highways and bridges
Customer who use local transportation facilities
System Components
CardPOSReaderValidatorVehicle Tracking System Instance IssuingCap ScriptingSoftware
Backoffice & Instant Issuing SoftwareCredit Card Management SystemPrepaid Card Management System Terminal Management SystemKGS-Tollway SoftwareBank Asya Banking System
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Card
Started with Native 12KSDA
Continues with Java 32KPayWave & PayPass
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Card Chip Structure
EMV Part – EMV Contact and Contactless Transactions
Loyalty Part – Transit Data, Loyalty Applications
Mifare Part – Tollway Payments (KGS)
Non
-Pa
ymen
t Fu
nctio
nalit
y
Paym
ent
Func
tiona
lity
Contact Interface Contactless Interface
Loyalty Part Mifare Emulation
EMV Part Contactless EMV
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Asyacard DIT can be used as ticket in Public Transportation
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AsyaCard DIT has KGS feature which allows easy pass from motorways, highways and bridges…
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Mobile Applications
Solution2Trends in Transit Payment1
Case Study 1 ; Bank in Transit3Case Study 2 ; City Card4Key Success Factors 5
City Card
700,000 cards issued in first year, most of them are personalised
AntKart
08 Jan 2009 19:28
Burger
Antalya City
Kart no: 99XX123456
Instant Reward1 Drink Free
“Erdi goes to the local burger house to have a quick lunch”
The local burger house, a member of the city card loyalty scheme had previously designed their own reward program. As this is Erdi’s 4th visit to them this week, they now instantly offer him a free soft drink !!!
Merchant Penetration of Project
Loyalty Program with Domino’s Pizza; Pay with CityCard get the second one free ; Penetration into food payment target is 1B$ food payment annually
General Income Model from Food Payment; Merchants & Brands make roughly 15% discount where 5% remains for card operator and 10% to Card Holder
Merchant Penetration of Project
Merchants started to compete to become a Card loading & Payment point
They got more customer in the store; gained commission from loading and payment transaction with the card
Merchants started to create special food menu to be paid by City Card
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Mobile Applications
Solution2Trends in Transit Payment1
Case Study 1 ; Bank in Transit3Case Study 2 ; City Card4Key Success Factors 5
OPERATORS
• Start with parking lots, take-a-ways, newspaper corners, schools & universities, copy centers, laundries, get in all vending machines and if possible ID cards at the same time
• Find right technology partners; Lack of single solution source for all
hw, applications, integrators
• High merchant fees effect profitability
• Know your customer & make loyalty compliments to keep them using card
• Instant Issue necessary for presonalised cards to know customer
• Decrease Fraud by moving to digital solutions
• Get support of legal authority to stop cash but rather card usage
• Motivate merchants with commission and increase # of people entering to shop
BANKS
• Try to be partner with operators work hybrid
• Handle the card issue process even if MIFARE
• Customer behaviour follow up
Key Success Factors