SMART AND INTEGRATED TICKETING & PAYMENTS Delivery Strategy 2018

1. Ministerial foreword p02 3.1 Current position p06 4. Delivery Plan p13 5. Overarching delivery aims p18

2. Introduction p03 3.2 Current schemes 4.1 Our role p13 6. Projected 10 year & projects matrix p09 delivery plan p19 2.1 Executive summary p03 4.2 Established activities p13 3.3 Funding p09 7. Glossary p21 2.2 Smart & integrated 4.2.1 Ticketing p13 ticketing p04 3.4 Industry challenges Return to this page by clicking on & drivers p10 4.2.2 Payments p14 this icon in the top right corner 2.3 Government objectives p05 3.5 Governance & 4.2.3 Customer proposition p15 2.4 Delivery strategy aims p05 stakeholder Interaction p12 4.3 Future activities p16 3. Context p06 3.6 Stakeholder feedback p12 1. Ministerial foreword 02

As Scotland moves into the next decade, I believe it is essential that we modernise and evolve our public services to meet the requirements of future society expectations.

A key role in this is the delivery of Our ambition is to support the industry smart electronic ticketing and payment to make this transition for its customers, services – making our and help Scotland embrace this simpler, more convenient, flexible and movement by improving public transport attractive for passengers. with better interoperable multi-model ticketing and payment services. I am therefore pleased to present the 2018 Smart and Integrated Ticketing This document outlines the current & Payment Delivery Strategy. position for smart ticketing and payment services on our public transport network, Whilst smart ticketing and payment the challenges we face and how, through is not the ultimate solution to issues partnerships and working together, facing public transport in Scotland, it is coupled with the forthcoming Transport an important part of people’s journeys – Bill, we can develop a better range of from planning your leisure options smart ticketing and more payment through to day to day commuting. By options to achieve this ambition – and simplifying and making this easier, we deliver on our vision that all journeys can achieve our overall aims to enhance on Scotland’s public transport networks public transport journeys, create modal can be made using some form of smart shift from car to public transport, ticketing or payment. improve our air quality, reduce our carbon footprint and make Scotland an even greater place to live and visit.

The smart ticketing industry is seeing a number of drivers for change. Advances in technology, different working patterns, broader consumer expectations and environmental concerns are changing, and Humza Yousaf will continue to change, the way we travel. Minister for Transport & Islands

Our recent consultation ‘The Future of Smart Ticketing in Scotland’ has further evidenced that there is appetite for an evolution in the way we buy, collect, pay for and use tickets on our public transport. 2. Introduction 03 2. INTRODUCTION

2.1 Executive summary By doing this we will bring We will continue to monitor consistent standards, developments in the fast Journey numbers 2016/17 Each year over half a interoperability, promote evolving smart and digital overall 393m billion journeys are made That all journeys on inclusivity and deliver a quality, technology marketplaces, on Scotland’s public Scotland’s bus, rail, attractive experience for users. as well as assessing society’s Bus concession 142m transport network. changing needs, expectations , subway and This document outlines how and consumer demands. ScotRail 94m This document sets out how networks can we will build on the projects we will achieve our ambition and schemes developed from This will help us to revise this Ferry 8.6m for smart and integrated be made using some our earlier delivery strategy, document accordingly, align ticketing and payment in form of smart and also details some future our work with the Scottish Subway 11.3m Scotland to be an integral ticketing or payment. schemes and projects we Government Digital Strategy, part of these journeys. anticipate delivering in the and ensure we are constantly Tram 6.6m next five to ten years. working towards meeting Source STS 2016/17 Our overarching aim is to public transport passenger deliver on the Ministerial vision We will look to develop requirements. through introducing and greater partnerships, release enhancing smart ticketing funding potential and facilitate and payment services and collaborative working across schemes across Scotland’s the public transport industry public transport network. to help us achieve this. 2. Introduction 04

2.2 Smart & integrated For the purposes of this Transport Scotland’s Smart ticketing and payment delivery strategy, smart and Integrated Ticketing ticketing means an electronic Team’s role is to support Smart ticketing and payment travel ticket that can be anyone with a public transport services are important loaded onto a micro-chipped remit – authorities, operators, elements of modern public smartcard or alternative media partnerships, providers – transport systems and are (e.g. mobile phone, wearable). to modernise their services increasingly prevalent in Smart payment means through interoperable multi- major cities and countries cashless payment without modal, smart ticketing and around the world. chip and pin (e.g. contactless electronic payment systems, bank card or mobile phone) making travel easier, more for travel.1 accessible and sustainable.

When travelling on public Our aim is to facilitate a transport around Scotland, consistent smart approach people want modern, digital that will suit Scotland’s public or electronic options for tickets transport travel requirements, and/or payment – no matter now and in the future. which operator or mode of travel.

Benefits of smart ticketing and payment

The key benefits of smart ticketing and payment are generally held to include: For passengers For operators For society • Ease of use • Less cash handling • Modal shift to public • Access to new ticket types • Gr eater information about transport – reduce car • Gr eater choice on how to customer’s ticket/payment emissions, health benefits pay for travel preferences • A more modern public • Better journey planning • Greater marketing transport network • Moder nisation in line with opportunities current and future society • Revenue protection expectations • Potential for increased patronage • Potential for quicker times • Abilit y to develop new products • Gr eater control of Smart ticketing means an management information electronic travel ticket that can be loaded onto a micro-chipped smartcard or alternative media.

1 Please see glossary for further explanations. 2. Introduction 05

2.3 Government This vision delivers against The Programme for Transport Scotland will continue objectives Scottish Government purpose: Government 2017/18 its work to deliver a national 2.4 Delivery • Simplify and improve • To focus government and commitment: ‘epurse’ system2 for use on Strategy aims access to the right price Within the Scottish public services on creating We are continuing with our saltirecards allowing cash for customers as a result Government’s Programme a more successful country, programme to allow all journeys free travel on public transport The smart ticketing and of improved information for Government, Transport with opportunities for all of on Scotland’s bus, rail, ferry, across Scotland. payment activities set out and ticketing options Scotland’s Smart and Scotland to flourish, through subway and tram networks to within this document are • Increase the number of Integrated Ticketing Team increasing sustainable be made using some form of Smart ticketing also intended to contribute to operator/local authority/ (SIT) is tasked with delivering economic growth smart ticketing or payment. contributes towards enabling the Scottish Government regional transport Scottish Ministers vision: The entire ScotRail network other objectives of the objectives through delivery partnership smart Its outcomes: is smart-ready and ScotRail Programme for Government: of the following aims: ticketing or payment • Our public services are high continues to develop and • Encourage shift from cars schemes implemented, quality, continually improving, deliver smart ticketing products to public transport thus • Increase the smart to meet local needs That all journeys on efficient and responsive to in line with their franchise improving air quality ticketing and payment • Ensure successful local people’s needs commitments. The five largest • Support domestic tourism offering continuation of Scotland’s bus, rail, • We live in well-designed, bus operators, covering 74% • Empower island communities and take up across all concessionary travel ferry, subway and sustainable places where of journeys, have already to support island-proofing transport modes as an ITSO smart we are able to access the introduced multi-operator of future government • Increase smart ticketing interoperable scheme tram networks can amenities and services smart ticketing in the city policies and strategies interoperability across • Facilitate wide as possible be made using some we need regions of Aberdeen, Dundee • Pilot free bus travel for operators and modes use of a standardised form of smart and Phase 1 of Glasgow, modern apprentices • Encourage a higher level platform for all public Its indicators: with Glasgow Phase 2 and of consistency in the transport providers, with ticketing or payment. • Improve people’s Edinburgh planned for smart ticketing customer the purpose of bringing perceptions of the quality introduction during 2018. proposition for members true interoperability of public services of the public • Reduce Scotland’s • Improve the provision of carbon footprint online ticketing and • Increase the proportion of information along with the journeys to work made by range of smart retail and public or active transport payment options • Improve digital infrastructure • Improve Scotland’s reputation

2 Since reconsidered, see Payments section on p6. 3. Context 06 3. CONTEXT

3.1 Current position Whilst we work to the ITSO Smart payments Rail As such, the current ScotRail The franchise includes targets, standard, we appreciate that Over the course of 2017 The ScotRail franchise is let by franchisee inherited a largely agreed with the operator, for Smart ticketing individual operator ticketing and early 2018, we have seen Scottish Ministers and covers smart-ready infrastructure, the delivery of smart ticketing The success of interoperable solutions have also been the considerable progress of all passenger rail services in and has, therefore, had by April 2019. These are based smart ticketing is based on successfully implemented, Scotland’s major bus operators Scotland, apart from those opportunities to make progress on using the ITSO standard service providers using secure such as mtickets, or mobile introducing contactless services by other operators in developing rail smart and include smart journeys standardised technology. To apps. We acknowledge payment systems on their that cross the Anglo-Scottish ticketing in the first years of uptake, introducing different deliver this the UK Government that in today’s marketplace fleets, on the success border (Virgin West and East the franchise. ScotRail also ticket types into smart, developed an interoperable passengers expect a choice of this as an alternative Coast, TransPennine, Cross accepts contactless bank card multi-mode tickets, working and secure smartmedia and support the industry with payment method already Country and the Caledonian payments at its ticket vending with bus operators to integrate technology standard, known providing more ticketing and seen on other modes like Sleeper). The current franchise machines and over services and promotion of as ITSO (Integrated Transport payment options, but our rail, ferry, subway and tram. was awarded in April 2015 the ticket counters. smart activities. Smartcard Organisation). focus for smart ticketing is to Abellio ScotRail Limited, for consistency with multi- In the wake of this earlier than and runs for a period of seven cont. Transport Scotland adopted modal interoperability, expected adoption of electronic years with an option to extend ITSO in 2006 as the delivery wherever possible. payment solutions by the bus to ten years. mechanism for the smart industry, it was agreed with the concessionary travel scheme. Transport Minister in Autumn Through the provision of this ITSO is now the basis for all 2017 to cancel procurement franchise we work with the Transport Scotland’s smart of a national epurse scheme, operator, currently Abellio, ticketing activity and we are as an alternative electronic and our rail franchise team to working with operators and payment system. Instead, deliver smart ticketing. suppliers to ensure Scotland’s Transport Scotland is now public transport network working with the industry to We ensured that the Scottish adheres to this standard. evaluate feasibility for electronic rail network was made smart bank payment services for ready for the start of the The ScotRail network is smaller operators and support current franchise by funding the availability and use of an ITSO smart reader platform fully smart enabled, with epurse facility, for those who validators at all but a handful an array of ticket types on require it. of remote stations (where offer, including Anytime, there were power supply/ Off Peak, Season and connectivity issues). flexi pass tickets. 3. Context 07

Bus In addition to the concessionary • Support for the introduction There are around 170 schemes, Transport Scotland of a single standard national commercial bus operators regularly engages with the epurse (since reconsidered, in Scotland, in addition to major operators to support as noted in section 3.1) which there are around smart activities. In March 2016, 150 community bus services. the major bus operators made • Support for a common Between 2006 and 2010, a series of commitments to the saltirecard logo displayed the commercial Scottish then Transport Minister to: on the various smartcards bus network was equipped that individual operators use with ITSO smart enabled • La unch interoperable, The smartcard saltirecard ticketing equipment. bus-to-bus, smart ticketing branding was introduced in zones across Scotland’s 2010 and is widely used on This was initially to enable the largest cities (Aberdeen, the smartcard estate across Scotland-wide Free Bus Travel Dundee, Glasgow and Scotland. Scheme for Older and Disabled Edinburgh) and the people followed by the Young surrounding areas • A plan to see contactless Scot discount product for Large cities, with greater bank card technology 16-18 year olds. These passenger journeys and installed on in schemes, managed by multiple operators, were Scotland by 2022 Transport Scotland, can be an obvious place to start As noted before, the main used by nearly 1.5 million card developing multi-operator operators are delivering this holders and now account ticketing schemes. Transport facility earlier than expected, for over one-third of all bus Scotland has provided a and Transport Scotland is now journeys made in Scotland. supporting role for these looking at the feasibility of regional schemes, but these bringing this payment service Since 2011, it has been the have mainly been industry led. to the smaller operators. responsibility of both existing Aberdeen and Dundee were and new bus operators to both delivered in late summer As part of our support ensure they continue to have 2016, Glasgow Phase 1 (day services for smaller bus appropriate smart ticketing tickets on bus retail) was operators, Transport Scotland equipment. delivered in November 2017. offers the following: Edinburgh is planned • ITSO Commercial smart for summer 2018. ticketing (smartcards, product development) • CMS/Portal/App – 99% of buses online and mobile now have ITSO • Ba ck office services • Asse t management 2.1.4 enabled. • Mark et and industry advisory services • Marketing toolkit • Epur se facilitation

cont.

2 Since reconsidered, see section 3.1 Payments 3. Context 08

Ferry Other modes The TfE Strategy for Delivery The tram has also recently Transport Scotland, in Taxis, and indeed other Scotland is home to 790 islands SPT (Strathclyde Partnership 2017-2021 confirms support began to adopt contactless partnership with Orkney smaller vehicles such as 8-seat and an extensive ferry network. for Transport) has undertaken for the continued development smart payments for Islands Council and Loganair, minibuses, used for community This ferry network is a mixture a substantial modernisation of fully integrated, smart, passengers. has successfully introduced a transport or social services of Scottish Government programme for the Glasgow electronic ticketing systems, scheme to deliver a local air transport, could benefit from franchises, Local Authority, Subway, largely funded by the and we have been supporting Air travel, even for domestic travel concession scheme using smart ticketing in a number private and subsidised routes. Scottish Government. As part this activity. journeys entirely within the saltirecard. It is envisaged of ways. Whilst the cost of full of this programme the subway Scotland, tends to be that, in due course, a scheme infrastructure may present Transport Scotland works with ticketing system was upgraded Edinburgh smart based on scanned barcodes such as this could be replicated a barrier for these very small the ferry industry to bring about to be fully ITSO smart, and ticketing ITSO platform is from either paper tickets or in other rural areas and to operations we are working smart services. Currently we a recent project with Abellio used to deliver the local mobile phones and, as such, commercial travellers on similar with suppliers, Local Authorities are working with CalMac to ScotRail has brought smartcard concessionary travel scheme the infrastructure is not set up routes, e.g. inter-island travel and Regional Transport implement a handheld ITSO interoperability between for City of Edinburgh residents to deal with ITSO smartcards on Orkney or Western Isles, Partnerships (RTP) to identify accredited device suitable for subway and rail; the ability to using the saltirecard on the either for individual carriers if required. best fit technology for the marine environment, that load SPT subway tickets on tram network. Although their or at generally. these services. can be used for smart ticketing ScotRail smartcards and vice system is certified to the latest retail and fulfilment. We are also versa. version of ITSO it is understood working with ScotRail to develop that some elements require a rail/sail product that can be The tram network in Edinburgh upgrade before it is fully added to their smartcard. is operated by Edinburgh interoperable with rail and Trams Ltd on behalf of bus and for commercial We also provide support Transport for Edinburgh (TfE). smart ticketing initiatives and advice to Local Authorities across Scotland. and RTP’s for their own ferry networks. Where practical, some ferry operators accept contactless electronic payment. 3. Context 09

3.2 Current schemes 3.3 Funding Through the Challenge Fund, & projects matrix which is currently available Transport Scotland has until the end of 2019, we are secured funding through able to offer funding of up to Transport Scotland Budget Actual Variance Service Projects the European Regional 40% against match funding 2017-18 £000’s £000’s £000’s Development Fund (ERDF) provided by public bodies who Young Carers to support interoperable smart wish to upgrade smart ticketing Resource - Operating Costs 920,642 790,122 (130,520) ticketing and payment activity machines and electronic within Scotland, with the aim Resource – Investment 692,507 888,713 196,206 Modern Apprentices payment technology to support of increasing the number of interoperable smart ticketing Resource Depreciation (non-cash) 97,511 53,530 (43,981) Job Grant smart journeys undertaken and payment in the local area. year on year. The funding Capital 559,690 483,243 (76,447) is part of the Low Carbon Employability As part of the ERDF funding DEL total 2,270,350 2,215,608 (54,742) Travel and Transport (LCTT) agreement, we have some programme and is currently Smartzones challenging delivery targets AME - - - available to Transport Scotland in terms of additional journeys up to the end of 2019, with an undertaken using smart PFI Resource (ODEL) 126,179 128,113 1,934 PlusBus opportunity to seek approval ticketing or payment. The PFI Capital (ODEL) 5,000 4,958 (42) for a further phase of funding target for the initial delivery Rail Sail for the 2019 to 2022 period. Total 2,401,529 2,348,679 (52,850) phase is for 20 million smart ERDF funding can cover up journeys to be made – this Education to 40% of our eligible projects means passengers using smart costs, such as staffing and ticketing or electronic payment back office infrastructure. options – between February Smart Products It also supports our Smart 2016 and the end of 2019. Ticketing Challenge Fund These smart journeys can be NEC Older & Concessionary which is open to Local converted from paper tickets, Authorities, RTPs or new customers, and are to NEC Young Scot and other public bodies be additional to the baseline throughout Scotland. of smart journeys already Interoperable Cards taken by January 2016.

Electronic Payments The target is for Epurse 20 million additional smart journeys by Status the end of 2019. Active Being developed Planning stage

Key

Planning Ferry Tram Subway Bus 3. Context 10

3.4 Industry challenges • There is such a range of • General supplier concerns: • Several operators and Local However, challenges are • Ferry services are fairly & drivers options for smart, it is difficult overuse of one supplier can Authorities have developed that different operators have new to smart ticketing, to assess which are best lead to delays in roll out. their own schemes, cards established varied ways in particular for the Challenges for purpose – barcodes, For example, the rail industry and products, but widespread of retailing and supporting concessionary travel There are some unique smartcards, mobile apps, is mainly served by one progress towards developing customers at present, and schemes, where ferry services challenges to delivery of our account based ticketing ticketing provider, and this smart multi-operator or we recognise that it may be will be starting from a point smart vision. These include: (smartcard and contactless can create waiting periods multi-modal schemes is difficult to gain consensus where interoperable smart bank cards) and paper tickets for changes to systems and slower than anticipated. on the best approach. ticketing is completely new. • To truly achieve the Scottish – most not yet providing true require significant investment. As a result, there are various Government’s vision for interoperability, either on the Alternatively there can • Bringing smartcard • On ferry: cars and freight considerations that will need smart ticketing across same or cross mode. To help be lack of competition to interoperability generates can bring high volumes of to be addressed prior to Scotland, there must firstly address this complexity, regulate the market. many positives. It reduces pre-booked traffic. Certainly ferry services adopting ITSO be an agreed common we continue to promote the number of cards required, on the busier routes, where smart technology, and also infrastructure in place, use of the ITSO standard • Bus industry: as a improves accessibility to pre-booking is the norm, whether it is either practical adopted by all participating throughout Scotland. deregulated market, each smart products and means the operation is more akin or desirable to extend operators and, secondly, a operator has their own one card can be used to air travel than bus or rail. smart ticketing beyond foot consistent, simple and easy • Cross border rail services commercial objectives to to access any mode of A central booking, passengers. Many ferry sales to use customer offering. need to tie in with the ITSO manage. Whilst working with travel (where products are reservations and ticketing points (on and offline) accept Once these are in place, there based ScotRail infrastructure. the Scottish Government available). However, to truly system is integral to the bank card payments. needs to be some means of To bring cross border to achieve the smart vision deliver on this we would also smooth running of a larger ensuring that the integrity interoperability for both and the idealised increase like to simplify the customer ferry operator’s network, • There are also a small and relevance of national and English/Welsh and Scottish in passengers, we need to proposition so that, as far as and is an important additional number of operators who key regional smart ticketing purposes, this should ideally be mindful of investment possible, passengers have component of the smart are not thus far engaged with schemes is maintained and, have both the DfT supported required and explore a common experience in ticketing infrastructure for the smart ticketing agenda, furthermore, that there is barcode and ITSO technology opportunities to support regard to how they obtain ferry operations. and where – ultimately – an orderly and planned enabled. where we can. a card, purchase a smart some form of legislation may migration in due course to product, collect and use be the only way of ensuring more advanced technologies that product, and resolve their participation. as these emerge. any issues or problems they may face. cont. 3. Context 11

Drivers • Technology: as technology • The UK wide public transport Whilst there are challenges, continues to develop, there industry is seeking to reduce there are also many drivers for will increasingly be options paper ticketing and the change that are influencing the around other forms of Department for Transport public transport industry. contactless payment – sees the future of smart These include: for example mobile phones using ITSO, mobile and and ‘beacon’ technology. barcode solutions (page 28, • Transport Bill: it is proposed Smart ticketing will likely also Connecting People, that smart ticketing is continue to migrate to mobile A Strategic Vision for Rail) included in the forthcoming services as that technology Transport Bill. Consultation becomes more mature. • As active travel becomes around the future of smart We need to ensure that we more prevalent across ticketing was completed do not stifle development Scotland, joining up journeys in December 2017 and in newer technologies, using bicycles, car clubs and this, along with additional and – when the time comes other engagement across the – to ensure that within any methods are expected to industry, is helping to inform update to the technologies become increasingly what steps should be taken used, a consistent standard is popular and are suited to improve smart. The smart maintained to allow for simple, to smart services. elements of the Transport Bill clear customer experience. will focus on smart ticketing, with smart payment being • Technology: a popular mobile delivered as part of our day solution is that of barcode to day service, rather than or QR code through an App. requiring legislation. Whilst this technology does not meet the ITSO security • The Bill will also include and interoperability standards provision for open data, which Transport Scotland which should provide a is committed to, we are platform for better fares observing with interest to and ticketing information see how this will develop. to the travelling public. In addition, our National • Customer expectations: Strategy is also considering developments mean that the impact of UK open data. passengers are beginning to see some benefits from smart • Customer proposition: ticketing and payment across the industry is aware that transport modes, however systems need to be more generally the experience is streamlined for the end not a consistent one. Through user. A simple, standardised improving technology, approach is necessary to working with stakeholders deliver the backbone of an and educating the end attractive consistent public user to the benefits, we can transport travel experience ensure that smart ticketing across Scotland and is is a successful component another important route to of encouraging modal shift increasing passengers. to public transport. 3. Context 12

3.5 Governance In addition, we will continue 3.6 Stakeholder Smart ticketing policy officials & stakeholder our regular stakeholder feedback have also consulted and interaction engagement through our engaged internally with the 82% channels with colleagues in The public consultation closed Integrated Travel In Scotland on 5 December 2017 and a of respondents agreed that a consistent smart In January 2016, Transport Smart Ticketing on , (ITIS) Board comprising payment option available across Scotland Scotland identified that a joined Rail Futures, Rail Delivery Group, total of 148 responses were representation from all the up and inclusive strategic Department for Transport, received from members of main modes – bus, rail and and on all main public transport modes would approach was desirable and Transport for the North, Welsh the public, Local Authorities, ferry – together with colleagues promote use of public transport in Scotland created an Operator Smart Government and other bodies transport operators, Regional from SG Digital since 2016 to Steering Group, comprising involved in smart ticketing and Transport Partnerships, public progress smart ticketing. senior managers from all the payment solutions. bodies and other organisations. major public transport operator Respondents were broadly There has also been regular 93% modes in Scotland. This body We will continue to support divided into two groups for the engagement with the Operator of respondents were in favour of was envisaged as a strategic colleagues in Digital and purposes of analysis: those Smart Steering Group, CPT, multi-modal, multi-operator regional decision making and advisory Connectivity Departments submitted by members of the individual transport operators, smart ticketing schemes group for smart ticketing and within Scottish Government in public (individuals) and those Local Authorities and RTPs. payment in Scotland. line with their digital strategy.3 submitted by groups with a As part of the Transport Bill specific interest or expertise in In terms of business impact, The Group meets regularly consultation feedback, we the topic area (organisations). relatively few transport 84% to consider the current will consider input regarding A total of 98 responses were operators responded and their were in favour of new legislation that status of smart ticketing and the constitution and perhaps received from individual views were mixed. Where there requires transport operators to participate respondents with the remaining payment delivery in Scotland requirement for an expanded was querying of proposals it in regional smart ticketing schemes and oversees the outputs of role of this group and its work 50 coming from organisations. was more along the lines of a number of working groups in moving the public transport “We can deliver this without on topics such as customer smart ticketing and payment Responses to the consultation legislation” rather than “This proposition, regional smartzone services forward. were broadly supportive of the will have a negative impact general themes set out in the 88% schemes, and evaluation on our business.” were in favour of a single new of market demands and We will also continue to focus consultation paper. influences. on maintaining regular contact governance body to advise the Minister with the many stakeholders, on controlled implementation of smart We will continue to collaborate experts, suppliers, aggregators ticketing and payment and 81% felt that with this Steering Group and and disruptors across the this body should be defined in legislation seek positive outcomes from smart industry to remain at the this partnership approach. forefront of developments and to be a go-to point for smart industry knowledge.

3 www.gov.scot/Publications/2017/03/7843 4. Delivery plan 13 4. DELIVERY PLAN

4.1 Our role Transport Scotland will also 4.2 Established Multi-model interoperability As requested, we will provide look to support operators and Activities schemes and projects smartzones with support Transport Scotland’s approach public bodies develop further Commercial smartzone for product development, to ensuring delivery of regional multi-operator smart 4.2.1 Ticketing schemes will continue to operational advice and Scotland-wide smart ticketing ticketing schemes where there be a key part of the smart implementation, if required, and payment will continue to Concessionary schemes is a demand. We will continue to run our ticketing portfolio. Three of as well as marketing and be multi-faceted, building on the four regional bus schemes promotional support. We the smart steps already taken flagship concessionary travel We will continue to use schemes using the Local committed to by the major will also seek to ensure across the public transport channels open to us bus operators are already these schemes can be sector. Authority NEC and Young through our various Scottish Scot branded saltirecards. up and running. expanded geographically, Government Franchises to can bring in more operators, There will be direct involvement manage delivery on smart We will continue to work with The GrassHOPPER scheme in and can include other in delivery, such as with the ticketing and payment services, Aberdeen/Aberdeenshire and modes such as rail. national concessionary travel Local Authorities to realise working closely with providers other benefits of using the the ABC scheme in Dundee schemes; support for other to meet consumer demands. commenced in late summer Of paramount importance public bodies, such as in the NEC saltirecard for smart ticketing services, such as 2016 and offer a range of smart to the customer is ease and delivery of regional schemes; tickets across all operators in simplicity of smart ticketing and in working with transport schools transport. As part of the interoperability work their respective regions. services. To this end, over 2018, operators to ensure that Transport Scotland is working commercially developed we are also working with Local Authorities to enable Both have been popular with closely with ScotRail, Local schemes are, as far as possible, passengers with plans for Authorities and bus operators on a standard platform commercial ticket products to be stored on the cards. expansion. In Glasgow; Phase on a smartcard interoperability and providing a consistent 1 of the ‘Tripper’ product was project. This project opens up customer experience. introduced in late 2017, with the smartcard estate, creating Phase 2 (online) to follow in interoperability by allowing 2018, and it is hoped that the smart tickets from any operator Edinburgh smartzone will or mode of transport to be launch in Summer 2018. stored on any Scottish ITSO smartcard.

cont. 4. Delivery plan 14

Local Authority support – In we are also supporting We will work with Local schools, staff travel a trial of interoperable Authorities to determine the Transport Scotland has smartcards for students who successful attributes of these also developed a range of travel using both bus and train, projects and build on these, ‘demonstrator’ schemes and is which is currently proving a as well as support others working with both public bodies success. We are also working to develop where there is and commercial operators in partnership with Local perceived demand. to make these the standard Authorities for schools and format for delivery in Scotland. Further Education transport We will also continue to These include activities to projects to enable children and work with Young Scot closely support: students to get smart travel. to achieve wider Scottish • School and college travel These are being delivered in Government goals for • Local authority employability East Lothian, Argyll & Bute, through travel for schools, schemes Western Isles, Dumfries & attainment, employability • Single operator epurse Galloway, and Perth & Kinross. and NEC activities. schemes • A mobile NFC (Near Field All these schemes have Smaller operator support Communications) app for potential to grow across We will continue to provide loading products onto the regions and provide savings support to the smaller saltirecard and reading to Local Authorities. Larger providers who request it what travel products are operators are also working with including, when our current stored on it Local Authorities to implement contract ends, procurement 4.2.2 Payments As part of this, we have Whilst we see the potential in • Supporting the use of the similar school products. of a new HOPS back office commenced work on a this area for certain markets, Following the withdrawal from Young Scot branded NEC system. We will also continue feasibility study for contactless we also note the recent procuring a national epurse card to deliver a range Socio-economic projects to review, test and trial our payment solutions, to provide success of contactless bank provision, Transport Scotland of new initiatives such as In addition to the future managed complementary information to smaller card payments for travel is now focused on: the forthcoming Modern Scottish Government proposed offerings such as CMS, operators about this provision convenience, and will support Apprentice pilot and plans schemes like Modern Portals and Apps. and to ascertain the best operators and other interested • Contactless electronic for a Job Grant smart Apprentices, we will look to way we can offer support. parties in determining which payment in place of product etc. continue and develop our We will continue to offer We anticipate this study will alternative payment route will national epurse for socio-economic projects, support and back office be completed inmid-2018. best suit their requirements. operators as part of our such as Employability Hub services for any operator smart payment strategy and Through Care. looking to develop ITSO We have had some interest We do not anticipate that cash • Redirecting funding smart ticketing services, and success with the epurse as a payment method will be earmarked for the national from product development system pilots in East Lothian removed from public transport epurse system into enabling through to marketing services. and Fort William. The epurse for the foreseeable future, contactless electronic allows passengers to pre-credit however we understand that payment to be delivered a smartcard with money to this is a commercial decision more quickly and across a be deducted for travel. We will for operators, based on their wider number of operators, continue to work with those own market analysis. We supporting smaller who wish to develop this will continue to monitor this operators as best fit form of electronic payment. position for the industry and • Maintaining support for the Government, as an area of basic epurse service for those potential concern for deprived smaller operators who want it socio-economic groups. 4. Delivery plan 15

4.2.3 Customer proposition We believe the branding for We will continue to work We will continue to review and • Promote interoperability smart ticketing services should with the industry to build evolve the smart ticketing of smartcards and tickets All public transport passengers be recognisable, trusted and a clear, identifiable brand, marketing and branding when available (multi-modal, in Scotland, whether regular inspire confidence. The Scottish which is becoming activities to meet customers’ multi-operators) users, occasional users or Government developed increasingly important for demands, on a national and • Ensure branding is clear, simply visitors to Scotland, the saltirecard brand to be passengers with the enhanced local basis, with the aim to: recognisable and fit for should be able to enjoy the associated with smart services multi-modal, interoperability purpose for multi-operator, benefits of modern ticketing in 2010. This was to allow projects underway. • Promote smart services to multi-modal smart ticketing and payment technology, passengers and operators increase public awareness • Work with providers to making their journeys simpler to clearly identify the smart Working groups with Transport and understanding improve information about and easier. We believe that concessionary cards that can Scotland, operators, RTPs, • Promote the Scottish various smart products this will help encourage modal be used to access free travel Local Authorities, Young Scot Government’s vision and and services, preferably shift onto public transport in Scotland. and other stakeholders have aim of the saltirecard in one place and contribute to growth in been established, both programme for Scotland usage of Scotland’s public Over time this brand has pan-Scotland and UK wide, • Promote smart as a modern, As part of our on-going transport services. evolved to be included on the to ensure marketing and more convenient, quicker customer proposition work, Transport Scotland commercial branding is core within way to use transport we will continue to research, smartcards, included on the rail interoperable and multi- • Raise the profile of smart monitor and evaluate smart smartcard and, more recently, modal smart offerings and ticketing schemes and services across Scotland, the majority of bus operators’ develop, where appropriate, products in Scotland – with the purpose of sharing commercial smartcards. a standardised customer locally and nationally best practices and being proposition and consistent an additional source of customer services. customer feedback. 4. Delivery plan 16

4.3 Future activities A pilot is expected first and, Mobility as a Service (MaaS) once this offering has been is an emerging concept aimed 4.3.1 Pilots and future brought to market, we will at providing a comprehensive planning seek to actively work with ITSO package of account based Technology & systems suppliers and stakeholders to journey planning and transport ITSO smartcards and bring a secure, standardised services, and not limited to contactless payment are not smart mobile ticketing solution conventional public transport. the only technology in use for to Scotland’s passengers. smart ticketing and payment. Assuming the concept matures Technology already offers a Account Based Ticketing into something tangible and wide range of other possibilities (ABT) is where a traveller substantial in the years ahead, – e.g. barcodes, mobile phone does not pay for transport smart ticketing will certainly be technology, NFC and beacon at the point of consumption an element of the services on (bluetooth) technology. but ‘on account’. An example offer, and an overlap between None of these, however, are is monthly billing for all travel the two areas may well be ABT. entirely proven as being both undertaken during that period Whilst MaaS is a topic that is interoperable and accessible to with potential capping and not a part of the immediate all passengers across all modes discounts applied, so that the considerations around smart and we wait to see how these passenger is assured of getting ticketing, it again has some technologies will develop. the right price available for overlap with our smart their journey. There is some activities, and we will look to During 2018 it is anticipated evidence that other European develop these when suitable. that ITSO will launch their transit countries with more mature hub with partners, providing smart ticketing offerings, such As part of the Scottish the interoperability of ITSO on as Ireland, the Netherlands Government’s Programme mobile, host card emulation and Denmark, see this as the for Government focus to (HCE). This is basically next major travel service to be improve community links, replicating the functionality developed and delivered. rural connectivity and address of the secure smartcard in a the ‘first and last mile’, we will During 2018 it is mobile phone. It is anticipated Within its franchise, ScotRail also be looking to engage that this will offer the security has already committed to with cycling and active travel, anticipated that and speed of ITSO, but with deliver an ABT pilot in 2018 demand responsive transport ITSO will launch the added convenience and and we look forward to and car club schemes. functionality that a mobile assessing the impact of this their transit hub with phone can bring, as well as approach in more general Services like these are often partners, providing eliminating the cost of the terms, for example how it has associated with MaaS. Within the interoperability actual chipped card. affected travel patterns and MaaS Scotland, localised, habits. If proven a success, we focused projects to deliver of ITSO on mobile would look to determine if there these types of transport are phones. is a future for this system, how gaining traction and pilots, this would best fit requirements such as Navi-gogo in Dundee, for Scotland’s passengers, and are proving interesting. We will the role of Transport Scotland continue to support suppliers to support progression. and interested parties as part of our interoperability and accessibility aims. 4. Delivery plan 17

Schemes Customer proposition Branding Consideration for a pilot of free & marketing projects We will also continue to concessionary bus travel for Interoperability evolve our saltirecard brand Modern Apprentices, using As the smartcard to make sure it is robust and smart ticketing systems, is interoperability project moves fit for purpose as technology currently being developed. forward, we will look to actively requirements modernise Working with bus policy promote this in collaboration and move forward. colleagues and other public with project stakeholders. sector bodies, such as Skills Building on campaigns, like Transport Bill Development Scotland, we are Fife in the Fast Lane, we will The Transport Bill aims to already involved in supporting aim to raise awareness of empower Scotland’s Local the feasibility, and as such the various smartcards, and Authorities and establish expect to be take a key role educate people on how smart consistent standards to in any delivery of this scheme. works - how they can use the make public transport easier same card to store smart to access and use, greener The Scottish Government is tickets for wherever there is and smarter than ever before. also looking at a proposal for smart public transport options It is intended to support our the introduction of a Job Grant available. We will continue to aspirations to deliver a safe, Scheme by 2019, offering work with Local Authorities to efficient, cost-effective and three months free bus travel help identify and improve on sustainable transport system for young people unemployed ITSO smartmedia services and for all. for more than six months. support further development This will most likely be using of these customer led projects. Significant progress has been the NEC platform and again, made in relation to the smart we anticipate undertaking a We will work with operators ticketing provisions within the key role in its development to help promote multi-modal, Transport Bill, as set out in the and implementation. interoperable tickets like Programme for Government. Rail/Sail and Plus Bus, as A public consultation on the We will also continue to work they come to market. future of smart ticketing closed with Young Scot and other public in December 2017 and work sector bodies to identify and Accessibility is now on-going, including deliver improvements to smart We will also be reviewing stakeholder engagement, public transport services, as well the availability of information to finalise proposals. These as provide support for other about fares and ticketing will feed into the legislative schemes where smart travel options. We will work with process for the Transport Bill technology can play a part. third party providers, such as that will be laid before Scottish Traveline Scotland, and support Parliament in 2018, and is set entrepreneurial activity to for introduction in 2019. enhance this capacity and develop accessibility to smart products. 5. Overarching delivery aims 18 5. OVERARCHING DELIVERY AIMS This flow sets out how the range of activities outlined in the document contribute to delivery of smart ticketing and payment aims.

Short term outcomes Medium term outcomes Long term outcomes SG/NTS Inputs Activities Outputs Reach 1-2 yrs 2-5 yrs 5-10 yrs Outcomes

Funding Rail and ferry: New smart ticket Easier to use Easier to use Quicker boarding times Increased (ERDF) franchise and contract products and more and more patronage on

support on smart obligations readily readily public transport Improve journey available available Back Office Interoperability Shorter dwell times times and smart smart (multi-modal): connections Contactless tickets/ tickets/ Increase in technical development and HOPS payment options cashless cashless smart ticketing/ marketing work, integrating Modal shift to payments payments payment Less cash handling with other modes including offering and public transport TS Resource active travel take up across Interoperable Smartzone support Scottish all transport smartcards LA/RTP (multi-operator): Transport Increased modes Greater information Simplify and across modes Resource Aberdeen, Dundee, Operators awareness about customers ticket/ improve value Reduced Glasgow and Edinburgh and demand payment preferences for money for emissions among Other Public Bus operator support: Local customers as a to tackle climate passengers A modern Sector CMS/portal/App, commercial Smartzone Transport result of change for smart public transport bodies smart ticketing development, products in urban Authorities improved tickets and Greater choice on how network EMV, marketing, infrastructure areas Increase the level information and payment to pay for travel Operator upgrade (ERDF) (open to all of smart ticketing options options Resource operators but likely to be Schools ticketing Improved interoperability of most interest to Upgrade air quality across operators Technical small/medium sized) infrastructure on Greater Further/ and modes Higher level of Expertise Local Authority support: bus marketing Higher consistency in the smart multi-operator ticketing opportunities Education ticketing customer Improved arrangements, toolkits for Ministerial proposition for members health and school, FE/HE, staff travel, Local/regional Support Increase the of the public wellbeing employability etc, future 2 way smart ticketing Other public number of Better journey CMS to support LA schemes initiatives services such operator/local planning Legislation Improved online tickets/fares as NHS/ authority/ High quality, information and retail Social regional Improve the provision accessible and Services transport of online ticketing and A more connected National marketing Online facility for affordable partnership fares information along sustainable fares info and retail transport Transport Bill provisions: smart ticketing with the range of retail Scotland (PfG commitment) or payment options Support for Rural schemes connectivity work Online facility for implemented (potentially Encouraging Management/procurement to meet local multi-modal) fares domestic tourism of ITSO supporting systems needs info and retail Increase in smart to enable concessionary and ticketing provision to smart ticketing to continue support local needs on ITSO platform Ensure Modemisation in Smart ticketing successful Future direction: line with current provisions in continuation of Account Based Ticketing, and future society Transport Bill Concessionary ITSO on Mobile, MaaS (missing expectations mile projects), New payment travel as an ITSO technologies smart sceme Marketing 6. Projected 10 year Delivery Plan 19 6. PROJECTED 10 YEAR DELIVERY PLAN

Activity 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Account Based Ticketing - ASR Pilot and Evaluation

Commercial Ticketing Services - Smaller Operators

Contactless Bank Cards Smaller Operators - Development

Contactless Bank Cards Smaller Operators - Feasibility

Epurse - Smaller Operators

European Regional Development Funding - Low Carbon Travel and Transport Fund

Ferry - Smart Projects (Non CalMac)

Interoperability - Customer Service - Expansion of Smartcard Services

Interoperability - mysaltire - Smartcard & Smart Ticketing Promotion

Interoperability - Strategic Generic

Interoperability - Technical - Integration Project

Interoperability - Traveline Scotland

ITSO 2.1.4 Infrastructure Upgrades

ITSO on Mobile

Local Authority Support Services

Miscellaneous Transport Bill

Mobility as a Service - Missing Mile - Demand Response Transport & Taxi

Mobility as a Service - Missing Mile - Feasibility Review

Mobility as a Service - Missing Mile Projects - Active Travel Connections 6. Projected 10 year Delivery Plan 20

6. Projected 10 year Delivery Plan cont.

Activity 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Mobility as a Service - Missing Mile Projects - Car Club

Mobile Connectivity As A Smart Enabler For Transport Operators

National Entitlement Card - Expansion of Air Concession

National Entitlement Card - Ferry Concession

National Entitlement Card - Older & Disabled Concessionary Scheme

National Entitlement Card - Young Scot Smart Improvements & Schemes

Operator Smart Steering Group

Procurement - Host Operator Processing System

Procurement - Transport Scotland Customer Management System

Programme for Government Schemes

Regional Schemes - Expansion of Through Care Scheme 6. Projected 10 year Delivery Plan 21

Glossary List of Smart Ticketing Acronyms

Term Meaning Back office system There are different types of back office systems, but for this document, the main function is to securely communicate (electronically) key smartcard usage details from the mode of transport (such as from the on board a bus, or a gate) to a centralised system to enable calculation of journey payment or travel history to the relevant operator or epurse provider. The Transport Scotland back office system is called HOPS (Host Operator Processing System). Beacon technology An infrastructure which interacts remotely with your mobile or other smart device, similar to Bluetooth, receiving and/or issuing information (eg reading tickets) as required. Contactless card payments (cEMV) Refers to contactless bank card payment, where a PIN does not need to be provided for transactions below £30. Actual acronym is Europay, Mastercard and Visa (the three companies that originally created the standard). CMS Customer or Client Management System

ETM and TVM Electronic Ticket Machine (typically on bus) and Ticket Vending Machine (typically at a rail station)

Governance How people collectively organise, often through rules and regulations, to manage and deliver on a programme of work or project.

HOPS Host Operator Processing System Back office support infrastructure that processes (public transport) transactions. Infrastructure The equipment used for the ticketing system, for example ticket gates, machines on board buses, devices used by conductors to check tickets, ticket machines at stations, as well as back office systems. Integrated ticketing A ticketing system or scheme that works across modes and ticket types, it can also combine with events or attractions; for example transport to Olympic/Commonwealth venues. These can also be paper based. Interoperable A smartcard that can be used anytime, anyplace, anywhere. Can be used on different transport operators (for example with buses this would be, Stagecoach, First, McGills etc) also different locations (Edinburgh, Glasgow, Highlands) and different modes (train, ferry, bus, tram, subway). ITSO ITSO is a not for profit organisation that oversees technical, standardisation and interoperable smart ticketing services for the UK. It is supported by the UK Government, and ITSO is a technical platform on which interoperable smart ticketing and epurse schemes can be built. The national concessionary travel schemes across the UK are based on this technology. ITSO 2.1.4 is the current standard required for a smart ticketing service. Legislation The process of making or enacting laws Primary legislation Primary legislation consists of Acts of Parliament or statute. Subordinate legislation A subordinate legislation is a law which is enacted under delegated powers, such as statutory instruments (for example regulations or by-laws). Multi-modal Can be used on different modes of transport, for example on train, ferry and bus.

Multi-operator Can be used on more than one operator but on one mode of transport (for example with buses this would be, Stagecoach, First, McGills etc). National epurse A pay as you go system, typically via a smartcard or mobile app. The smartcard or app is pre-credited via an online account or other means of topping up or buying credit. 6. Projected 10 year Delivery Plan 22

Glossary List of Smart Ticketing Acronyms continued

Term Meaning National concessionary travel scheme, The Transport Scotland national concessionary scheme provides over 60 year olds and people with a disability with free bus travel. national entitlement card (NEC) A National Entitlement Card, is provided for recognition, and also to electronically enable the journey using smart ITSO infrastructure. NFC A mobile device that is able to read a smartcard through Near Field Communication (NFC) – often seen when a smartcard is held up to a mobile device on a train or similar. The reader will also often be able to indicate the ticket/money on the smartcard. Proprietary system A system that is in place already, usually owned by the person or company who developed it, but which cannot interoperate with other systems eg Lothian Buses Ridacard, or London’s Oyster. PVAL Platform Validator – ITSO card readers found commonly on rail platforms.

Saltire card A smartcard that is capable of being used for smart ticketing or epurse with ITSO technology. It is branded with a saltire flag on the reverse, with the name ‘saltirecard’. Each operator customises their own smart saltire card on the front, the card should also include a reference number and some operators include your pass photo. The NEC cards are also branded as such. Smart Non-paper technology – mainly in this context using a micro-chipped smartcard, mobile or contactless payment for travel purposes.

Smartcard A micro-chipped card that stores your travel ticket, or retains monetary credit to be deducted on use.

Smart platform Similar to infrastructure (see above) and system (see below), and in the context of this document, this refers to any electronic or digital product or service that can interact with a smart ticket or smart payment. This could include a mobile app on android or apple, a card reading app, an online system or website, electronic ticketing machines etc. Smart ticketing An electronic travel ticket loaded on a micro-chipped card or mobile phone.

Smart ticketing system A system that enables the use of an electronic ticket(s) on a smartcard or mobile app. These can be multi-modal and multi-operator.

Smart ticketing scheme A scheme can refer to any set of smart ticketing arrangements with a particular set of rules around availability, prices and validity. These can be single operator eg SPT subway, ScotRail season tickets, Stagecoach Megarider, multi-operator eg the smartzones in Aberdeen and Dundee or the national bus concessionary travel scheme, or multi-modal ticketing schemes. Smartzone A (usually urban based) region where transport operators agree to set up and participate in multi-operator smart ticketing, at locally set prices and validity rules. GrassHOPPER (based around Aberdeen) and ABC (based around Dundee) are current examples in Scotland. Transport Scotland Buchanan House, 58 Dundas Road, Glasgow, G4 0HF 0141 272 7100 [email protected]

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