NFC Payment Solutions for Transit

Transcription

1 NFC Payment Solutions for Transit Easing Regional Mobility David dekozan Vice President, Strategic Initiatives, CTS Worldwide June 4, 2014

2 Transit in Transition TVM, retail outlet, mail Open Payment Card Over the Air Account Based TODAY TOMORROW Downloaded onto phone Card Based Overnight Synch and Se8le No Real- Time! 2

3 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

4 NFC Handsets on the Rise NFC Enabled Web Hits October through March Handset Model Number of site visits % of mobile visits LG MS770 Motion 4G % Samsung SPHL710 Galaxy S III % Samsung GTI9500 Galaxy S IV % Samsung GTI9300 Galaxy S III % LG MS769 Optimus L % Nokia Lumia % Samsung SGHT999 Galaxy S III % LG P769 Optimus L % Samsung SPHL900 Galaxy Note II % Samsung SGHT989 Galaxy S II % Samsung SGHM919 Galaxy S IV % Samsung SPHD710 Galaxy SII Epic 4G Touch % Samsung SCHR530M Galaxy S III % HTC M7 One % Samsung SGHI337 Galaxy S IV % Samsung SMN900T Galaxy Note % Samsung SPHL720 Galaxy S IV % Google Nexus % Samsung SGHT999L Galaxy SIII LTE % Samsung SGHT769 Galaxy S Blaze 4G % Google Nexus % Sprint X325c/APX325CKT EVO 4G LTE % HTC 9292 EVO 4G % LG LS970 Optimus G % Samsung SGHI317 Galaxy Note II % Samsung SGHi717 Galaxy Note % Samsung SPHD710BST Galaxy SII Epic 4G Touch % Motorola XT907 DROID RAZR M 4G LTE % Samsung SMN900P Galaxy Note % Total 30.51%

5 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

6 On the Handset Two Key Components The Fare Management App Controls interaction between the transit back office and the credential Interacts with the mobile wallet and/or SE applet to issue requests and commands Provides the user experience and the available features/products associated with transit usage and account management The Credential A virtual transit card (data file and key set in the SE or via HCE) A transit token (capable of mutual authentication with the reader) A mobile bankcard exposed via NFC A registered 3 rd party ID/token A bar code ticket CONFIDENTIAL & PROPRIETARY 6

7 Features and Options Self-Service Smartphone User Experience Over-the-Air Loads Phone as Ticket Media Phone with browser P O O Smartphone Self-Service Application w/o NFC P P 7 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

8 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

9 Mobile Credentials in Smart Card Systems (Today) Usability Compatibility Ease of Deployment INF cost Access Provisioning cost Security C/B support A/B support Low Battery Trans Speed Off-line SE NFC HCE NFC BLE Bar Code CONFIDENTIAL & PROPRIETARY 9

10 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

11 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

12 Integration and Services Aggregation One single point of contact- we take responsibility for tying together and managing the eco-system

13 The Regional Mobility App When is my bus? My cards/ tickets What should I buy? Reserve a cab, car or cycle My commercial offers My journey history Smart re-routing Find, park and pay My realtime alerts Plan my journey v=qhd6xyp2dbe

14 David dekozan Smart Card Alliance 191 Clarksville Rd. Princeton Junction, NJ (800)