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 David.dekozan@cubic.com