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New Fare Payment Systems Update

New Fare Payment Systems Update. Presentation to Capital Program Oversight Committee May 23 , 2011. Agenda. Goals Concept Challenges Moving forward. MTA goals. Lower cost of revenue collection Average 15¢ cost per revenue dollar collected Integrate fare payment across modes & agencies

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New Fare Payment Systems Update

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  1. New Fare Payment SystemsUpdate Presentation to Capital Program Oversight Committee May 23, 2011

  2. Agenda • Goals • Concept • Challenges • Moving forward

  3. 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

  4. 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

  5. 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

  6. 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

  7. Industry outreach • Suppliers • Transit authorities

  8. 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

  9. 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

  10. 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

  11. 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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