New Fare Payment Systems
Update
Presentation to
Capital Program Oversight Committee
May 23, 2011
Metropolitan Transportation Authority
Agenda
• Goals
• Concept
• Challenges
• Moving forward
Metropolitan Transportation Authority
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MTA goals
• Lower cost of revenue collection
− Average 15¢ cost per revenue dollar collected
• Integrate fare payment across modes & agencies
• Substantially reduce cash use
• Speed up performance at turnstiles & fareboxes
− Speed up bus boarding and reduce dwell times
• Future-proof
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Fare payment concept
• Account-based, not card-based
– More like E-Z Pass, less like MetroCard
• Account may reside with bank, MTA, mobile
phone network or other 3rd party provider
• For entry, customer will tap, not swipe, at
readers on turnstiles and fareboxes
• Tap contactless credit/debit card, prepaid card,
phone or MTA Card
Metropolitan Transportation Authority
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Fare payment concept (cont.)
• Encourage customers to self-serve on-line, at ATMs
and kiosks, and via widespread external network of
retail merchants
• Leverage existing payment industry infrastructure,
products and services
• Use relatively inexpensive and commercially
available off-the-shelf-hardware and software
• Applicable to all modes and agencies
– All agencies involved in concept development
– All agencies have or will have pilots
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Commuter railroad pilots
• One pilot for each LIRR and MNR
– On-board and off-board payments
• Plus test handheld devices
• Pilots commence in 1Q 2012
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Industry outreach
• Suppliers
• Transit authorities
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Industry outreach: Suppliers
• Widespread industry interest about this project
• May 10: 150 representatives from 80 vendors
− Payment industry including banks and other issuers,
card brands, acquirers
− System integrators
− Hardware manufacturers
− Wireless network carriers
− Fare collection system suppliers
− IT service companies
Metropolitan Transportation Authority
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Industry outreach: Transit authorities
• Current implementations of open payments
− London (TfL)
− Salt Lake City (UTA)
• In close contact with major US transit systems
that are procuring open payment systems
• Working with regional partners on seamless
intermodal travel
− NJT
− PANYNJ/PATH
Metropolitan Transportation Authority
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Fare payment challenges
• Installation of bus readers
• Managing commercial relationship with
payments industry
• Subway communications networks
• MTA-issued card & reload network
• Transition from MetroCard
− Customers
− Employees
• Effective communication
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Moving forward: Next 6 months
• Develop detailed requirements for MTA-issued
card and reload network
• Develop Project Plan: requirements, cost
estimate, schedule, procurement strategy
• Develop payments industry negotiation strategy
• Finalize subway communications networks plan
• Select System Integrator
• Install hardware on Staten Island buses
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