NFC Payment Solutions for Transit Easing Regional Mobility David deKozan Vice President, Strategic Initiatives, CTS Worldwide June 4, 2014 Transit in Transition TVM, retail outlet, mail Open Payment Card Op@ons Over the Air Transac@on Account Based TODAY TOMORROW Downloaded onto phone Card Based Overnight Synch and Se8le No Wai@ng Real-Time! 2 US Regional Smart Card Programs Agency Brand Type Architecture Supplier Atlanta Breeze Mifare- Classic Card Based Cubic Boston Charlie Mifare-Classic Card Based S&B Baltimore Charm MifarePlus* Card Based Cubic Chicago Ventra Open Payment Acc Based Cubic Los Angeles TAP Mifare-Classic Card Based Cubic Miami Easy Card Mifare- DESFire Card Based Cubic Minneapolis Go To Card Mifare- Classic Card Based Cubic NYNJ PATH SmartLink Mifare- DESFire Card Based Cubic Philadelphia Freedom/TBD Mifare-DES* Card>>Acc Cubic>Xerox Salt Lake City Eco-Pass Open Payment Acc Based VIX San Diego Compass Mifare-Classic Card Based Cubic San Francisco Clipper Mifare-DESFire Card Based Cubic Seattle Orca Mifare-DESFire Card Based VIX Washington D.C. SmarTrip>TBD MifarePlus* Card>>Acc Cubic>Accenture CONFIDENTIAL & PROPRIETARY 3 NFC Handsets on the Rise NFC Enabled Web Hits October through March % of Number of mobile Handset Model site visits visits LG MS770 Motion 4G 3707 5.13% Samsung SPHL710 Galaxy S III 2745 3.80% Samsung GTI9500 Galaxy S IV 1904 2.63% Samsung GTI9300 Galaxy S III 1237 1.71% LG MS769 Optimus L9 1222 1.69% Nokia Lumia 521 1043 1.44% Samsung SGHT999 Galaxy S III 977 1.35% LG P769 Optimus L9 791 1.09% Samsung SPHL900 Galaxy Note II 749 1.04% Samsung SGHT989 Galaxy S II 739 1.02% Samsung SGHM919 Galaxy S IV 668 0.92% Samsung SPHD710 Galaxy SII Epic 4G Touch 632 0.87% Samsung SCHR530M Galaxy S III 617 0.85% HTC M7 One 552 0.76% Samsung SGHI337 Galaxy S IV 540 0.75% Samsung SMN900T Galaxy Note 3 450 0.62% Samsung SPHL720 Galaxy S IV 448 0.62% Google Nexus 7 335 0.46% Samsung SGHT999L Galaxy SIII LTE 309 0.43% Samsung SGHT769 Galaxy S Blaze 4G 293 0.41% Google Nexus 4 282 0.39% Sprint X325c/APX325CKT EVO 4G LTE 253 0.35% HTC 9292 EVO 4G 246 0.34% LG LS970 Optimus G 243 0.34% Samsung SGHI317 Galaxy Note II 240 0.33% Samsung SGHi717 Galaxy Note 222 0.31% Samsung SPHD710BST Galaxy SII Epic 4G Touch 214 0.30% Motorola XT907 DROID RAZR M 4G LTE 204 0.28% Samsung SMN900P Galaxy Note 3 201 0.28% Total 30.51% Mobile/NFC Transit Services • App discovery • Manage Cards • Manage Profile/Preferences • Manage Account (s) • Funding Options • Auto-load • Pre-Tax Benefits • Top Up Cards- Smart Phones, Retail Terminals, Kiosks • Find Cash accepting retailers • Buy and present tickets • Use transit card for payment • Commuter tickets, parking, bike share • Get Alerts • Fare related • Arrivals and notices • E-receipts • Promotions • Plan Trip • Carry virtual card • Tap phone for payment CONFIDENTIAL & PROPRIETARY 5 On the Handset – Two Key Components • The Fare Management App Ø Controls interaction between the transit back office and the credential Ø Interacts with the mobile wallet and/or SE applet to issue requests and commands Ø Provides the user experience and the available features/products associated with transit usage and account management • The Credential Ø A virtual transit card (data file and key set in the SE or via HCE) Ø A transit token (capable of mutual authentication with the reader) Ø A mobile bankcard exposed via NFC Ø A registered 3rd party ID/token Ø A bar code ticket CONFIDENTIAL & PROPRIETARY 6 Features and Options Self-Service Smartphone Over-the-Air Phone as Ticket User Experience Loads Media Phone with browser P O O Smartphone Self-Service Application w/o P P 7 NFC Smartphone with NFC as reader/writer P P P O Smartphone with NFC and secure element access or HCE P P P P *Mifare 4 Mobile a key to early adoption CONFIDENTIAL & PROPRIETARY 7 NFC as a Card Interface Retail POS Bank PIN Pad Tablet Retail Device TVMs & ATMs Home PC with NFC Personal Mobile With NFC Cycle share Pay for on and off- street parking meters CONFIDENTIAL & PROPRIETARY 8 Mobile Credentials in Smart Card Systems (Today) SE NFC HCE NFC BLE Bar Code Usability Compatibility Ease of Deployment INF cost Access Provisioning cost Security C/B support A/B support Low Battery Trans Speed Off-line CONFIDENTIAL & PROPRIETARY 9 What about Mobile Bankcard? • Wallet platforms are still in early stages of adoption • Wallet usage models create transactional overhead • Only works in an account based open payment environment • Agencies lose opportunity to drive payments and mobility optimization strategies • Challenges exist with redundant PAN’s, card aliases, cloud wallets, and dynamic PAN’s • Better option may be to find ways to link the transit app to the mobile wallet through API’s and commercial partnerships Business Issues • Who develops and maintains the app? • How does a credential issuer gain access to the SE? • What does it cost? • What are the trade offs for HCE? • How does BLE enhance the solution? • Is it a viable substitute? • Who is responsible for maintaining “the pipes”, ensuring security, and managing system evolution? • How does the app interact with mobile wallet platforms? • Who is responsible for payment processing and settlement operations? • Who is responsible for user support? • What opportunities are there for linked applications and who manages them? CONFIDENTIAL & PROPRIETARY 11 Integration and Services Aggregation One single point of contact- we take responsibility for tying together and managing the eco-system The Regional Mobility App My cards/ What tickets should I buy? Reserve a When is my cab, car or bus? cycle My My journey commercial history offers Smart Find, park re-routing and pay My real- Plan my time alerts journey http://www.youtube.com/watch? v=qhd6XYP2DBE David deKozan [email protected] § Smart Card Alliance § 191 Clarksville Rd. · Princeton Junction, NJ 08550 · (800) 556-6828 § www.smartcardalliance.org .