NFC Payment Solutions for Transit - From The Executive ...€¦ · NFC Payment Solutions for Transit ... Salt Lake City Eco-Pass Open Payment Acc Based VIX San Diego Compass ... Seattle

NFC Payment Solutions for Transit

Easing Regional Mobility

David deKozan Vice President, Strategic Initiatives, CTS Worldwide

June 4, 2014

Transit in Transition

2

TVM,    retail  outlet,  

mail  

Overnight  Synch  and  Se8le  

Card  Based  

Downloaded  onto  phone  

TODAY   TOMORROW  

Over  the  Air  Transac@on  

Open  Payment  Card  Op@ons  

No  Wai@ng  Real-­‐Time!  

Account Based

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

Handset  ModelNumber  of  site  visits

%  of  mobile  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

CONFIDENTIAL & PROPRIETARY 5

•  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

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

Phone with browser

Smartphone Self-Service Application w/o NFC

Smartphone with NFC as reader/writer

Smartphone with NFC and secure element access or HCE

Self-Service Smartphone User Experience

Over-the-Air Loads

Phone as Ticket Media

P

P

O O

P 7

P P P O

P P P P *Mifare 4 Mobile a key to early adoption

CONFIDENTIAL & PROPRIETARY 7

NFC as a Card Interface

CONFIDENTIAL & PROPRIETARY 8

Home  PC  withNFC

Retail  POS

Bank  PIN  Pad

Personal  MobileWith  NFC

Pay  for  on  and  off-­‐street

parking  meters

Cycle  share  

TVMs  &  ATMs

Tablet  RetailDevice

Mobile Credentials in Smart Card Systems (Today)

CONFIDENTIAL & PROPRIETARY 9

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

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

http://www.youtube.com/watch?v=qhd6XYP2DBE

My real-time alerts

Find, park and pay

When is my bus?

Plan my journey

Reserve a cab, car or

cycle

My cards/tickets

My journey history

Smart re-routing

My commercial

offers

What should I buy?

§  Smart Card Alliance §  191 Clarksville Rd. · Princeton Junction, NJ 08550 · (800) 556-6828 §  www.smartcardalliance.org

David deKozan [email protected]