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This presentation outlines the Metropolitan Transportation Authority's plans to implement a new fare payment system, aimed at reducing costs and modernizing payment methods across all transit modes. By transitioning from a card-based to an account-based system similar to E-Z Pass, the MTA seeks to enhance customer convenience through contactless payments. The agenda covers goals, challenges, pilot projects, industry outreach, and next steps, all designed to streamline revenue collection, lower cash usage, and improve overall efficiency in fare transactions.
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New Fare Payment SystemsUpdate 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 • Substantially reduce cash use • Speed up performance at turnstiles & fareboxes • Speed up bus boarding and reduce dwell times • Future-proof
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
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
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
Industry outreach • Suppliers • Transit authorities
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
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
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
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