Multimodal Fare Payment Integration (2020) / Chapter Skim
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8 History, Context, and Technological Change 2.1 Overview This literature review examined published reports, news articles, self-published agency materials, and industry news sources relating to fare payment systems and the current state of the industry as it relates to multimodal fare payment convergence. Both national and international resources were used, though the focus was on U.S.
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History, Context, and Technological Change 9 smart card fare payment systems and most still allow cash fares. Additionally, the complexity of fare payment systems has increased with the introduction of multiagency fare payment systems, extensively covered in TCRP Report 115: Smartcard Interoperability Issues for the Transit Industry and TCRP Synthesis 125: Multiagency Electronic Fare Payment Systems and defined as systems "in which one or more agencies share payment processing, adopt governance rules (including fare/transfer policies, settlement, and cost allocations)
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10 Multimodal Fare Payment Integration Since the early 2010s, trends from the retail payments industry have been crossing over to fare payments, with the Utah Transit Authority introducing open payments using contactless bank cards in 2010 and the Chicago Transit Authority expanding on the concept to support multiple agencies in 2013 (Okunieff 2017)
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History, Context, and Technological Change 11 2.3 Current Transitions -- Enabling the Future 2.3.1 Defining Payment Convergence The Secure Technology Alliance and Association for Commuter Transportation (2017) identified four types of payment convergence that support multiple transit modes and external mobility providers: • Use of a common payment technology • Linked or integrated mobile apps • Common or linked payment accounts • Incentives or co-marketing For the purposes of this TCRP synthesis, payment convergence can consist of any of those four forms, with special focus on achieving convergence with entities that are outside of the transit agency.
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12 Multimodal Fare Payment Integration Card-Centric Fare Payment System [A] fare payment system that uses read-write smart cards that store information about valid fare products (or stored value)
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History, Context, and Technological Change 13 account-based systems for accessing transit, some of which may not have been implemented yet in the United States. For an agency implementing an account-based system that supports multiple forms of identifiers, it is important to ensure that both the back-office and the customer-facing aspects can support the identifiers.
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14 Multimodal Fare Payment Integration • Data needs to be protected. Cities and private companies must treat geospatial mobility data as they treat PII.
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History, Context, and Technological Change 15 information is acquired and used. Privacy also includes the concept of protecting against unauthorized or arbitrary access (Harteis 2018)
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16 Multimodal Fare Payment Integration and the information that is shared between public and private parties -- would be highly beneficial to transit agencies. Overall, issues of privacy and cybersecurity for customer data associated with transit ticketing and payment convergence operate within a larger framework for privacy in the digital age.
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History, Context, and Technological Change 17 These technological developments, the emergence of new modes, and the popularity of nontraditional mobility services such as bike sharing, car sharing, scooter sharing, and ride hailing have increased the expectations of the traveling public. Increased customer expectations have accelerated the conversation about multimodal payment convergence.
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