The Growing Impact of Bank Cards in Public Transportation · PDF fileThe Growing Impact of...
Transcript of The Growing Impact of Bank Cards in Public Transportation · PDF fileThe Growing Impact of...
The Growing Impact of Bank Cards in Public Transportation
Soner CASURVP, South East Europe2010, Utah
nda
Open Payment in Public Transportation
VeriFone’s Transportation Solutionp
Case Study –Bank Asya City Card ProjectCase Study –Bank Asya City Card Project
Open Payment in Public TransportationPublic Transportation
ution to Micropayment
ropayment Market - $724 Billion
placement of cash with electronic payment.
t tl T h l t t ntactless Technology penetrates ropayment.
olution to City Cardolution to City Card
nsportation is the backbone of the City Card
opayment Driver Markets
ansportation is starting point to penetrate into micropayment
ansportation card is the backbone of the city card
y Cards with payment asset create huge revenue
nsit is Changing
ransportation is starting point to penetrate into micropayment c opay e t
ayment cards became widespread in transitystems with Contactless technology
ransportation cards create huge revenue.
Worldwide public transit fare collection is $50–$100B per year
assenger prefers to use contactless payments or transit environments
• Prefer plastic card instead of carrying cash
eople will travel all around the world with ontactless VISA/MasterCard.
olution of Transit Fare Payment
Convergence between banking and transit
Open System
The most. Closed-loop
contactless
p y
Tomorrow
TodayClosed-loop
magnetic
100+ year span
Tokens
Coins
of Bank Cards on Transit Systems
nsportation is the primary driving force for Banks nvolve in Micropayment.
bank in trasnportation business will dominate tactless card world
of the Wallet Opportunitypp y
paid contactles cards are an option for the unbanked ulation
rease the card penetration and customer numbersrease the card penetration and customer numbers
bal interoperability is a necessity
sted party
ity to manage high transaction numbers
ential Benefits of Open Payment
minate the extra step of buying transit card or ket
re convenient for infrequent riders and visitors
itive effects of outsourcing card management and uing parts to banksuing parts to banks
ducing of aquisition cost
nsit may benefit from marketing and customer vice.
rease usage of public transportation
tems become more transparent and measureabletems become more transparent and measureable
VeriFone’s VeriFone s Transportation S l tiSolutions
Fone – Leading the way in Open Payment
Fone’s leadership in deploying contactless paymentptance systems makes it the perfect partner toplement Banks leading position in the transportationplement Banks leading position in the transportationket.
Motivated market to accept bank card to “differentiate VF’s nique value”
upport banks to achieve their goals and follow the convertion o open systems in transit payment
anks ask VeriFone to be solution partner in transportation p projects
anks will be using shared validator from VeriFone
Municipalities changed requirements to accept bank cardsMunicipalities changed requirements to accept bank cards
eriFone offered long term rental & revenue sharing model
d to End Transportation Solutions
e Scope of Automated Fare Collection System
C Management Software Components
CardM t
Contract M tReporting Settlement
Cl i
alidatorApp.
urnstile Accounting&Mgt MgtReporting Clearing
CostumerService
IntegrationMgt.
urnstileApp.
iosk/VMApp.
&Finance
Human Resources
AFCManagement Software
Solution
Service Mgt.
FieldAppl.
Transport.Companies
erchantPOSApp.
spector
Banks
MerchantMgt.
Station &
Lines
FieldDevices
Mgt.Tariff
spectorApp.
VehiclerackingApp.
3. Party Comp.Systems
................
Centralized Management Softwareart Buss.App.
d Devices
3.PartyApp.
d Devices App.
e Collection Hardware
M GO V lid t V GO V lid O dMxGO Validator VxGO Validator Outdooroo
r
Indoor
outd Turnstile
• Mx870 • High-end Product• Multimedia Platform
• Vx700 • Low Cost• Supports zone system and
e
pp ydistance based pricing
s–Tram-Metro-Ferry Bus-MinibusTram-Metro- Ferry
re Collection Hardware - Validator
M GO V lid t V GO/ECO V lidMxGO Validator VxGO/ECO Validator
Supports all card types• Supports all card types• EMV Certified Validators• GPS Integration• H&V Mounting Options• Built-in power control card
RS, WiFi, 3G , Thermal printer
per Ticket Acceptor
screen touch keyboard
•GPRS
•On-board GPRS Class 10, Tri Band
• Built in power control card• Vibration Elimination Kit• USB Interface• Environment: • Water, Dust, Vibration
mory card reader
chargeable battery
-bit 200 MHz Processor
: Embeded Linux ARM 9
•On Board Power Supply
•DC 8V ÷ DC 30V
•Built-in buzzer for tones, prompts
mory: 64 MB SDRAM & 64 MB Flash
play : 16 bit color, ¼ VGA
lt-in media player
eakers: Built-in speakers
•Visual LED Indicators
•An over voltage and a load dump protections
provided
•Operating tº - (-35 Cº ÷ + 85 Cº)Operating t ( 35 C ÷ + 85 C )
rd Sales & Loading
hMx Kiosk Merchant POS
Qx110
Floor Type Wall Type
• Multimedia Platform+Contacless Payment Att
ende
d
Vx510Multimedia Platform Contacless Payment
• Barcode Reader/Printer/Card Dispenser(FT)
• Metal / Plastic Body
A
• UPS & GPRS, Ethernet, Wi-Fi – (FT)
Credit Card Cash + Credit Card
Case Study
Bank Asya City Card Projecty j
Bank Asya - Turkey
• B k A t bli h th 6th i t fi h • Bank Asya was establish as the 6th private finance house in 1996
• Bank Asya is a mid range bank in Turkey.
• Its credit card market share is 3.04% (in terms of creditcard number) and 10th among all the banks in Turkishmarket.
• Launched in early 2008 as a major extension to Bank • Launched in early 2008 as a major extension to Bank Asya’s ASYA DITCard.
• Bank Asya created a complete city card solution by using the contactless EMV technologies ie Visa Paywave & MC g yPaypass.
Scope of City Card Project
• Creating a city-card concept that gives the opportunity to the customers to use the same card not only for shopping but also in
• transportation, (4 cities in Turkey; Maras, Balıkesir, Bolu and Karabuk)• car parks,
• toll-payments, (Boshporus bridges and all tollways)• vending machines,
• stadiums,
• movie theathers,
• as campus card/student identification card, (Karabuk University)• as library card,
• Supplying a fast, effective and reliable transportation system by using contactless EMV chip cards and banking infrastructure.
• Creating a standardized global solution instead of local solutions.
• Enabling the system to offer different campaigns and loyalty options.
Having a contactless credit card is not enough for a Bank to convert
Prerequisites
Having a contactless credit card is not enough for a Bank to convert Bank Card in to City Card.
Covering all customers with the options:
• Contactless Credit Cards
• Contactless Prepaid Cards
• Contactless Prepaid Special Cards
(students, old-aged, etc.)
• Contactless Prepaid Anonymous
Cards (reloadable)
Achivements
• Its contactless card market share is %32
• In terms of contactless credit card number is 2nd • In terms of contactless credit card number is 2nd among all the banks
• Bank Asya is holding first place in terms of contactlessterminal number (% 41 market shares)terminal number (% 41 market shares)
• Bank Asya started to issue just contactless cardsinstead of conventional cards.
• 1 000 000 C i l C di C d i i 11• 1.000.000 Conventional Credit Cards given in 11 years- 500.000 DIT Cards given in 2 years
• In December 2009, total revenue of Bank AsyaContactless Cards are equal to the revenue collectedContactless Cards are equal to the revenue collectedfrom the rest of contactless bank cards in Turkey.(Interbank Card Center (BKM))
Future Strategies on City Card Projects
•Plan to increase its market share in 3•Plan to increase its market share in 3-
4 years by issuing 2.000.000 new
credit cards
•In order to support City Card Projects
the %75 of Credit Cards is going to be
issued as Contactless Credit Cards.
•Target to increase its rank from 10th
to the 6th Bank in Turkish market.
Thank You Thank You ...