Emerging Technologies in

Multimodal Transportation Planning Best Practices and Integration of Transportation Technologies

Ashish Chandra The brief

• What are the current practices for collection? • What are the specific requirements? • What are some of the best practices prevalent globally? • What has been the experience in integrating the fare systems of different modes of ? • What are the key issues and challenges? • What are the market opportunities?

PwC Payments has evolved from purely cash and in-bank transactions to plastic and digital modes

1950s-1970s 1970s-1990s Cryptocurrency Cheques/ • An exchange medium created and stored Debit Cards electronically, using encryption techniques Demand Drafts • Invented in 1970’s; • Bitcoin was the first decentralized used as mass medium widespread use after cryptocurrency, developed in 2009 1990’s • Since then, numerous cryptocurrencies have • Account for 24% been created of total consumer • Today, market capitalization of transactions in cryptocurrencies is around India $16.5 billion 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s Future Pre 1950s 1950s-1990s Electronic Money Cash Credit Cards • Digital equivalent of cash, stored on was the primary • Invented in 1950’s and peaked as a electronic device or remotely at a mode of percentage of consumer server • payment transactions in 1990’s The money is moved through E-fund • The Credit Card penetration in India. Transfer & Mobile And E-wallets stands around 30% • The mobile payment market is India • 17% of mobile users are using e- is expected to reach USD 11 billion commerce by 2018

Technology advancements are continuing to disrupt the way transactions are completed

PwC Fare Mediums have evolved from paper based tickets to improving customer convenience and operational flexibility

AFC systems originated Adoption NFC technology with tokens or paper enabled CSC being tickets dispensed by integrated into Smart staff or from self- phones to provide a “one service vending device for all’ solution. machines

Evolution

Magnetic stripe Contactless smart card technology was adopted for (CSC) can be adapted by any its reliability. However AFC architecture and do Data Magnetic stripes get worn collection, Auto top-up, Balance down easily protection, Loading value online.

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PwC Mix of AFC technologies and systems used globally are quite widespread – legacy systems often dictate technology adoption

London Netherlands Chicago Oyster OV- Chipkart Chicago card plus & Ventra Hybrid Architecture Standards based Card Based Hybrid Architecture Close loop

Dubai Nol Proprietary Card based Closed loop

San Francisco Clipper Standards based Account based Closed system New York Metrocard Proprietary Card Based – Tokyo Closed loop Pasmo, Suica Proprietary Account based – Closed loop Washington DC Utah Smartrip Hong Kong Farepay Standards basedAccount Octopus Hybrid Architecture Based – Closed loop Proprietary Card based Closed loop

Singapore Ez – Link, CEPAS Standard based Account based Closed PwC 66 Technology architecture is evolving from Card Centric to Account Centric Systems – with or without Open Loop/EMV specification

With advances in Communication Technologies and fast data access, the AFC Systems are also moving towards dynamic and flexible systems which offer greater customer convinience

PwC Standards-based transit fare payment systems provide greater flexibility in system design, acquisition and operation

EMV Standards

• Global standard for chip card • Open Standard for Public • Dual interface smartcard with Transport (OSPT) Alliance technology, developed by stored value for transit and EMV develops, maintains, and chip with RuPay Specifications Europay, MasterCard and Visa in certifies product compliance 1993 with CIPURSE, • Host Account as a prepaid/debit/credit card along • Security framework that • Ensures coexistence of with Global Balance stored on defines the interaction between different ticket types the card the chip cards and the payment • Allows switching between • Allows Open Loop Solution device form factors with Card Based Payment technologies • Chip stores cardholder and • Interoperable fare collection solutions for cards, stickers, • Service Areas defined to store application data more securely keychain, mobile phones and passes and other non-monetary • Protection against card other consumer devices as information and flags well as infrastructure reproduction fraud CV • Interoperable between operators components with direct interface with NPCI.

PwC AFC Architecture are also evolving with changes in payment ecosystem

Card Based Systems “Prepaid” Accounts Tickets Fully Open Loop Account Based Systems Account- Old Rider Backend

CardholderPOS Cardholder POSAccount- Cardholder POS Backend First Riders Checks with Issuer Bank Value stored in E-purse is Authorises the transaction from in case of first rider or deducted at POS account stored in backend lets pass through Issuer Bank

Card Based Account Based Account Based Pre-Paid Full Open loop Transaction Risk Nil Some First Rider Risk Multi-media Accounts No Yes Yes Top-ups/ Refunds Slow Fast Not Required Fare Upgradation Complex & Slow Fast & Flexible Fast & Flexible

Key Benefit Simple & Robust Flexible, Fast & Dynamic Flexible, Universal, Convenient

Connectivity, Bandwidth, RISK Connectivity, Bandwidth and Key Challenge Inflexible, Slow, Expensive Model required for Card Memory Requirement Schemes PwC The future of Validation Mechanisms of AFCs is heading towards hands free/ validation-less

 Transport Operators need to validate the customers on faster pace as number of customer using the system are growing everyday

 Transport Operators need the efficiency of Future these validation technologies to be able to 2010 is heading toward hands evolve and be future ready free/ Validation less travel through Biometric and 2000 Biometric Bluetooth 1995 1960 1990 NFC

QR Code Magnetic RFID Stripe Validation-Less travel is a distinct possibility in near term

PwC In a multi-modal environment with hitherto independent operators, integrated ticketing system are a technical and logistical challenge

PwC Mobility as a Service Integrated journey planning and bookings

• MaaS Global, a Finnish startup, has developed an App called as Whim, that allows passengers to mix and match a variety of public and private means of transport • Allows combined booking for the complete journey that is linked to you mobile payments • The app is currently live in Helsinki, Finland and West Midlands, UK

Passenger chooses the route from Point A The app makes the booking for Costs are displayed making a clear to Point B. The app can suggests a entire journey and also ensures that trade off between speed, comfort multimodalroute which may start with a that the hired vehicles are available and price. Passengers can buy a one bike journey followed by a train and then and is running on off journey or a package modelled a taxi/ on-demand / one way car share time on mobile phone contract

• Integrates information of routes, way to bus stops/ stations, payments and booking, combining the various options in an efficient and cost-effective way, and getting the passenger seamlessly from door to door • The packages include unlimited public transport access plus a certain number of cab rides and days of car rental

PwC Mumbai public transport systems caters to 11 million trips daily, Making it single largest Public Transport market in India

Sub-urban railways, and metro carry around Key Statistics: 78-80% motorised public transport and the rest by intermediate transport systems  11 Million commuters  30 Million trips per day  80% public transport mode share  Good Public Transport coverage  Lowest cost among major global cities

Daily Public transport trips across major cities 40.0

Mumbai is expected to have extremely 15.0 14.0 16.0 high public transport trips as 5.7 4.3 compared to other major cities London Hong Singapore New York Mumbai* Greater Kong Tokyo

PwC The diversity in ticketing systems and fare policies has to be simplified for public transport to become the preferred mode

Public Transport Operators Rail Metro Bus IPT

Ticketing Direct Manual ATVM Mobile App Website System Payment

Ticket Single/ Season Recharge- Tokens Daily Pass Types Return Passes Smartcard

Payment Credit/ Online Mobile Store value- Cash Types Debit Card Payment Wallet Smartcard

PwC The objective of Integrated Ticketing System (ITS) is to provide a seamless travel experience to commuters

The Integrated Ticketing System aims to promote the use of public transport in Mumbai Metropolitan Region (MMR) by making ticketing system easy and attractive

ITS shall assist to:

Combination of modes Reduce time to Reduce fraud and and transfer purchase tickets revenue leakage

Reduce administrative Accurate and reliable Data to develop fare and fare collection cost information to people policies and products

PwC Key objective of the ITS

• Provide a seamless travel experience across multiple modes of transport Enhancing the Passenger • Stay connected with customers through real-time service feedback. Experience • Provide personalized products and services • Reward loyal customers through reward schemes

• Reduce fraud happening through Increasing Operational • Simplify processes to collect revenue and data • Enable interoperability with other agencies Efficiency • Improve day-to-day interactions between partners and vendors • Obtain insights to improve transit planning and operations

Developing an Adaptive, • Adaptive system architecture that can evolve with technology Scalable and Future Ready • Building a Scalable solution System Architecture • Capitalize on the developer community to create new applications

• Reduce the cost of AFC system by sharing common operating expenses Ensuring Financial • Expand alternate and non-farebox revenue opportunities Sustainability • Monetize the ticketing products by entering into strategic partnerships with potential partner

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PwC Concluding remarks…

 Technology evolution offers a greater flexibility in fare collection. Customers are increasingly looking towards “ease of payment”

 Institutional challenges persist for integrated fare systems in a multi-modal environment

 In absence of Integrated , multi-level fare products should be accommodated in Smart Card. Potential to look at emerging standards like NCMC and OSPT which could offer customised solutions

 Transit companies need to look beyond current operations and think about becoming comprehensive “Mobility as a Services Provider” adding value to commuter daily lives > Thereby making transit an even more attractive mobility option

PwC Thank You

Ashish Chandra

PwC | Capital Projects & Infrastructure

Mobile: +91 (0) 888 4818 365 Email: [email protected]

PwC