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Remaining Challenges for Eu-Wide Integrated Ticketing and Payment Systems

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Remaining Challenges for Eu-Wide Integrated Ticketing and Payment Systems REMAINING CHALLENGES FOR EU-WIDE INTEGRATED TICKETING AND PAYMENT SYSTEMS Executive Summary February 2019 1 Introduction The scope of this study is to investigate and provide a comprehensive and neutral analysis on the challenges of delivering EU wide integrated ticketing and payment systems and what possible actions and initiatives at EU level could be foreseen in pursuance of such goal. The purpose is to make a multimodal transport more attractive for users and to promote a more efficient use of existing infrastructure and services. It is a prerequisite for seamless multimodal door- to-door journeys. Integrated ticketing can be defined as the purchase of a single ticket that allows passengers to travel using different mode(s) of transport provided by one or more operator(s)1 or as “combining all transport methods in one single ticket” and is considered as the natural partner to full availability of multimodal travel information and planning services2. This definition is not generally shared by all the stakeholders: other selling modalities, such as combined tickets allowing for a connected journey should be taken into account. The combined selling of various tickets from different operators would solve some of the problems arising from integrated ticketing, in particular those relating to the liability of various transport operators. Integrated ticketing requires performance of a number of phases as well as the intervention of various players in order to guarantee the lifecycle of the travel chain. The value chain can be divided into back office and transport value. Back office value includes: . Application Programming Interfaces (APIs): interfaces supporting all distributed journey planning and ticketing, available to authorised users (or open to all users). Interoperability: common standards to facilitate integration between different ticketing schemes. Product search/product query: the user is searching for information concerning the journey, timetable, price, best option/combination. This may include also travel planners (e.g. on the mobile phone) to find the right route, means of access, and to order the ticket for this route at the same time. Booking/preliminary reservation: the user has selected the journey he/she needs and submitted a reservation. Payment and Clearing: the journey is paid via credit/debt card or via other digital payment/wallet and the payment is cleared. Revenue sharing: the revenue is distributed between the different actors of the transport chain. Transport value includes: . Validation: common validation rules for integrated tickets. Transport service: the transport operators included in the journey selection perform the requested services. Change of reservation/Delay/Error: re-routing or changes in case of errors or delays. Complaints’ managements: a single point to manage passengers’ complaints. Compensation: in case of errors or delays. 1 INTEGRATED TICKETING ON LONG-DISTANCE PASSENGER TRANSPORT SERVICES, European Parliament Study, 2012, page 15. 2 Towards a roadmap for delivering EU-wide multimodal travel information, planning and ticketing services, SWD (2014) 194. 2 The development and implementation of integrated ticketing schemes is fairly heterogeneous across the European Union (EU). The level of integration may diverge significantly throughout the regions of the same country3. There are a lot of examples of electronic and smart ticketing, developed as part of EU-funded research projects or provided by different transport operators, start-ups or public- private partnerships. However, a full integration has not been achieved, meaning that it is not possible to buy a integrated ticket for a multimodal journey across Europe and thus to ensure an EU- wide door-to-door coverage. Legislative framework EU legislation We have analysed the EU legislation which is relevant for the integrated ticketing and payment services. Directive 2010/40/EU (ITS Directive) The EU adopted Directive 2010/40/EU on the framework for the deployment of Intelligent Transport Systems in the field of road transport and for interfaces with other modes of transport- The ITS Directive aims at accelerating the coordinated deployment and use across Europe of intelligent transport systems in road transport (and interfaces with other modes). Its objective is the provision of full, accurate and real-time traffic information to passengers, via a data collection system involving Member States, carriers, management bodies and service operators. the Directive identifies a list of six priority actions encompassing: a) the provision of EU-wide multimodal travel information services; b) the provision of EU-wide real-time traffic information services; c) data and procedure for the provision, where possible, of road safety related minimum universal traffic information free of charge for users. Its potential Impact on multimodal passengers is that access to the relevant information by multimodal passengers might help them anticipate or partially counter the knock-on effect that a disruption affecting one mode of transport might have on the others. Five delegated acts have been adopted after the entry into force of the ITS Directive. Among them, the Regulation (EU) 1926/2017 on the provision of EU-wide multimodal travel information services4. The Regulation establishes the specifications necessary to ensure the accessibility, exchange and update of standardized travel and traffic data and distributed journey planning for the provision of multimodal travel information services in the European Union. Ticketing is not fully within scope. Public Service Obligations (PSOs) Public service obligations are established by Member States. However the EU has adopted various measures laying down the procedures and conditions they apply to the execution of PSOs. The main scope of EU PSOs regulations is to provide transport services on routes where there are no commercial interests of private operators but the routes are essential for the development of the areas. The PSOs rules complement public procurements and lay down conditions under which compensation payments are deemed compatible with internal market and State aid rules. 3 The use of intermodal transport is for example more pronounced in Italian cities with populations of more than 100.000. In Poland the Warsaw City Card and ticket system is the most advanced (and oldest) system of this type and covers the largest amount of modes of transportation (trams, trains, buses, metro and city bike- sharing program). 4 Delegated Regulation 2017/1926 on Intelligent Transport Systems (ITS) 3 For road and rail transport, PSOs and compensation are laid down by Regulation (EC) No 1370/20075. Regulation No 3577/926 includes PSOs for maritime cabotage, to maintain appropriate scheduled maritime transport of passengers and goods to and from or between islands. Air Services Regulation 1008/20087 lays down the conditions for MS to impose PSOs to maintain appropriate scheduled air services on routes which are vital for the economic development of the region they serve. Distribution networks - CRS The Computerised Reservation Systems (CRSs - also known today as Global Distribution Systems – GDSs) act as technical intermediaries between the airlines and the travel agents and provide their subscribers with instantaneous information about the availability of air transport services and the fares for such services and permit travel agents to make immediate confirmed reservations on behalf of the consumer. Notably Regulation 80/20098 ensures that air services by all airlines are displayed in a non-discriminatory way on the travel agencies' computer screens and introduce enhanced rules for the protection of passenger/personal data. Payment Service Directive (PSD2) The PSD2 is analysed because it provides for new payment systems which can be integrated in ticketing, but also because is an important EU milestone in the sharing of banking data. Therefore, it could represent a possible model for further initiatives on data sharing. The Payment Service Directive,9 revised in 2015 (PSD2), has provided EU-wide harmonisation of payments services aimed at increasing the security for payment transactions and account information and creating a level playing field to enhance competition, opening the payment services to new non-bank providers. Amongst other things, it introduces the Third-Party Provider (TPP) as a definition to regulate new payment services. Two new types of TPPs are introduced, namely Account Information Service Providers (‘AISPs’) and Payment Initiation Service Providers (‘PISPs’). Both AISPs and PISPs will have to comply with the regulatory requirements under PSD2. Both AISPs and PISPs will have to comply with the regulatory requirements under PSD2. 5 Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road and repealing Council Regulations (EEC) Nos 1191/69 and 1107/70, OJ L 315, 3.12.2007. 6 Council Regulation (EEC) No 3577/92 of 7 December 1992 applying the principle of freedom to provide sevices to maritime transport within Member States (maritime cabotage), OJ L 364, 12.12.1992. 7 Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community (Recast) (OJ L 293, 31.10.2008 8 Regulation (EC) No 80/2009 of the European Parliament and of the Council of 14 January 2009 on a Code of Conduct for computerised reservation
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