Mobility Payment Integration: State-of-the-Practice Scan OCTOBER 2019 FTA Report No. 0143 Federal Transit Administration PREPARED BY Ingrid Bartinique and Joshua Hassol Volpe National Transportation Systems Center COVER PHOTO Courtesy of Edwin Adilson Rodriguez, Federal Transit Administration DISCLAIMER This document is disseminated under the sponsorship of the U.S. Department of Transportation in the interest of information exchange. The United States Government assumes no liability for its contents or use thereof. The United States Government does not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the objective of this report. Mobility Payment Integration: State-of-the- Practice Scan OCTOBER 2019 FTA Report No. 0143 PREPARED BY Ingrid Bartinique and Joshua Hassol Volpe National Transportation Systems Center 55 Broadway, Kendall Square Cambridge, MA 02142 SPONSORED BY Federal Transit Administration Office of Research, Demonstration and Innovation U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 AVAILABLE ONLINE https://www.transit.dot.gov/about/research-innovation FEDERAL TRANSIT ADMINISTRATION i FEDERAL TRANSIT ADMINISTRATION i Metric Conversion Table SYMBOL WHEN YOU KNOW MULTIPLY BY TO FIND SYMBOL LENGTH in inches 25.4 millimeters mm ft feet 0.305 meters m yd yards 0.914 meters m mi miles 1.61 kilometers km VOLUME fl oz fluid ounces 29.57 milliliters mL gal gallons 3.785 liter L ft3 cubic feet 0.028 cubic meters m3 yd3 cubic yards 0.765 cubic meters m3 NOTE: volumes greater than 1000 L shall be shown in m3 MASS oz ounces 28.35 grams g lb pounds 0.454 kilograms kg megagrams T short tons (2000 lb) 0.907 Mg (or “t”) (or “metric ton”) TEMPERATURE (exact degrees) o 5 (F-32)/9 o F Fahrenheit Celsius C or (F-32)/1.8 FEDERAL TRANSIT ADMINISTRATION i FEDERAL TRANSIT ADMINISTRATION ii REPORT DOCUMENTATION PAGE Form Approved OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruc- tions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503. 1. AGENCY USE ONLY 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED October 2019 Through May 2018 4. TITLE AND SUBTITLE 5. FUNDING NUMBER Mobility Payment Integration: State-of-the-Practice Scan DTFT6017N0043 6. AUTHOR(S) Ingrid Bartinique and Joshua Hassol 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESSE(ES) 8. PERFORMING ORGANIZATION REPORT NUMBER Volpe National Transportation Systems Center 55 Broadway, Kendall Square FTA Report No. 0143 Cambridge, MA 02142 9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING AGENCY REPORT U.S. Department of Transportation NUMBER Federal Transit Administration Office of Research, Demonstration and Innovation FTA Report No. 0143 East Building 1200 New Jersey Avenue, SE Washington, DC 20590 11. SUPPLEMENTARY NOTES [https://www.transit.dot.gov/about/research-innovation ] 12A. DISTRIBUTION/AVAILABILITY STATEMENT 12B. DISTRIBUTION CODE Available from: National Technical Information Service (NTIS), Springfield, VA 22161. Phone 703.605.6000, Fax 703.605.6900, email [[email protected]] TRI-30 13. ABSTRACT This state-of-the-industry scan presents findings collected through an extensive literature search and an Internet inventory of mobility payment integration (MPI) deployments through January 2018. In addition, it conveys key implementation issues and potential solu- tions obtained through May 2018 in more than 20 FTA-lead group and individual discussions with professionals from the public, private, and non-profit sectors that are currently engaged in mobility payment integration. Significant implementation challenges were in the areas of policy, planning, and governance; multimodal payment products and architecture; payment settlement and reconciliation and testing; and implementation. The stakeholders are seeking support and guidance from FTA and other entities to optimize solutions to the cross-cutting issues associated with application programing interfaces, data rights and sharing needs, customer service, data secu- rity and tokenization, and providing service equitably to all customers. By creating a vehicle for consensus-building on best practices and alternative solutions and fostering innovative research, the FTA MPI Program can accelerate the achievement of the public and private benefits of MPI. 14. SUBJECT TERMS 15. NUMBER OF PAGES Payment integration, mobility, accessibility, public transportation 86 16. PRICE CODE 17. SECURITY CLASSIFICATION 18. SECURITY CLASSIFICATION 19. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTRACT OF REPORT OF THIS PAGE OF ABSTRACT Unclassified Unclassified Unclassified TABLE OF CONTENTS 1 Executive Summary 1 State of MPI Deployment in the U.S. as of January 2018 1 Challenges in MPI as of May 2018 and Opportunities to Resolve Them 6 Five Cross-Cutting Issues Requiring Further FTA MPI Program Attention and Research as of May 2018 8 FTA MPI Program Leadership for Mitigation 12 Section 1: Introduction 16 Section 2: Methods 16 Literature Search 16 Inventory of Deployments 17 Connection with Stakeholders to Surface Challenges and Key Issues 20 Section 3: Findings: Inventory 20 Automated Fare Collection Implementation as of January 2018 21 Mobility Payment Integration Implementation as of January 2018 22 Key Elements of Identified MPI Implementations 27 Section 4: Findings: Challenges and Trends in MPI as of May 2018 27 Planning, Policy, and Governance 51 Multimodal Payment Products and Architecture 56 Payment Settlement and Revenue Reconciliation 56 Testing, Implementation, and Customer Service 57 Section 5: Findings: Five Cross-Cutting Issues Requiring Further FTA MPI Program Attention and Research as of May 2018 57 Application Programming Interfaces (APIs) 60 Data Rights and Sharing Needs 64 Customer Service 65 Data Security and Tokenization 66 Providing Service Equitably to All Customers 70 Appendix A: Mobility Payment Integration (MPI) Program: Demonstration and Deployment Planning Framework FEDERAL TRANSIT ADMINISTRATION iv LIST OF FIGURES 29 Figure 4-1: U.S. Bikeshare Ridership by System, 2010 through 2016 50 Figure 4-2: Comparison of Contract Elements: MBTA AFC 2.0 vs. Other Recent Software as a Service and/or P3 Procurements for MPI 51 Figure 4-3. Projected Cost Savings to MBTA Resulting from P3 Contract LIST OF TABLES 3 Table ES-1: U.S. Locations with AFC Deployments as of January 2018 4 Table ES-2: U.S. Locations with MPI Deployments as of January 2018 13 Table 1-1: Estimated Number of Operating Public Transportation Systems in U.S. by Mode as of 2014 18 Table 2-1: FTA MPI Roundtables and Forums Captured in 2018 Scan 20 Table 3-1: U.S. Locations with AFC Deployments as of January 2018 22 Table 3-2: U.S. Locations with MPI Deployments as of January 2018 FEDERAL TRANSIT ADMINISTRATION v ABSTRACT This state-of-the-industry scan presents findings collected through an extensive literature search and an Internet inventory of mobility payment integration (MPI) deployments through January 2018. In addition, it conveys key implementation issues and potential solutions obtained through May 2018 in more than 20 FTA-lead group and individual discussions with professionals from the public, private, and non-profit sectors that are currently engaged in mobility payment integration. Significant implementation challenges were in the areas of policy, planning, and governance; multimodal payment products and architecture; payment settlement and reconciliation and testing; and implementation. The stakeholders are seeking support and guidance from FTA and other entities to optimize solutions to the cross-cutting issues associated with application programing interfaces, data rights and sharing needs, customer service, data security and tokenization, and providing service equitably to all customers. By creating a vehicle for consensus-building on best practices and alternative solutions and fostering innovative research, the FTA MPI Program can accelerate the achievement of the public and private benefits of MPI. FEDERAL TRANSIT ADMINISTRATION vi EXECUTIVE This state-of-the-industry scan presents findings collected through an extensive literature search and an Internet inventory of deployments through SUMMARY January 2018. In addition, it conveys key implementation issues and potential solutions obtained through May 2018 in more than 20 FTA-led group and individual discussions with professionals from the public, private, and non- profit sectors that are currently engaged in mobility payment integration. The FTA MPI project team is iteratively developing an MPI demonstration and deployment planning framework (the MPI Framework) based on ongoing input from stakeholders engaged by the FTA MPI Program. This scan uses the MPI Framework structure to present the findings. State of MPI Deployment in the U.S. as of January 2018 MPI is gaining momentum in the United States. As of January 2018, 34 locations around the country