Clipper Innovations in Fare Payment California Transit Association Conference

®

Carol Kuester, Director, Electronic Payments November 13, 2014

Clipper = Seamless Travel Around the Bay Area

• Nine transit systems – Available to 95% of all transit riders

– 1.4 million active cards

– Processing $35 million/month

– More than 350 retailers

• Fare policy – 4 fare categories: adult, senior, youth,

disabled

– 4,000 unique fares

– 12,000 recognized transfer combinations

– 100 agency fare products

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Clipper Expansion

3 East Bay suburban bus operators by 2015, Sonoma County bus operators by 2016

Clipper Works for Bay Area Transit Riders

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Transaction Volume, September 2014 Average Weekday Ridership Unique Cards Used Active Card Accounts Settle Transit Operator Revenue

779,348 787,783

1,506,726 $42,146,555

400,000

500,000

600,000

700,000

800,000

Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14

Unique Clipper Cards Used, September 2014

Benefits for Customers

Convenience – Autoload automatically

reloads value on card when it runs low

– More than one-third of registered Clipper cardholders are signed up

Financial Benefits – Day Pass Accumulators give

customers best deal – Currently offered for two

operators: AC Transit and VTA – Preferential pricing via passes

and discounts on cash fares 5

Benefits for Customers

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Collectible Cards

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Benefits for Operators Interoperability – Offers wide variety of products – Supports multiple fare types: adult, youth,

senior, disabled – Supports complex transfers schemes

Integration with Regional Programs/Initiatives – Commuter benefits programs – Supports parking at BART – Parking pilot to test compatibility with pre-tax parking purse

Adaptable to Special Products – Institutional passes – Collectible and commemorative cards

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Benefits for Operators – Example:

SFMTA Free Muni for Youth • Accommodates new

participants on ongoing basis • Responsive to changing

requirements (i.e., changes in age eligibility, eligible services)

• Ability to replace lost, stolen & damaged cards - and disable the original pass to limit the risk of misuse

• Provides data, so SFMTA can monitor & evaluate the program

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Data Analytics

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– Negotiated data feed from current system contractor – Built rapid cloud hosted, scalable pilot transaction Data Store – More than 20 cases of insights useful for policy decisions for

operators in first few months – Data maintenance costs with analyst support under $3,500 per

month, a fraction of cost using other data gathering methods

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

3:00AM

5:00AM

7:00AM

9:00AM

11:00AM

1:00PM

3:00PM

5:00PM

7:00PM

9:00PM

11:00PM

1:00AM

Mea

n W

eekd

ay B

oard

ing

Tim

es

Adult

Youth

Senior

RTC

Weekday Clipper Boarding Times by Fare Category, September 2014

Mobile Access – Mobile-optimized website

mirrors desktop site – Automatic migration of

content – Greater customer

convenience – Planning for increased

mobile offerings going forward

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Website Traffic September 2014

Unique Visitors – Standard 149,173

Unique Visitors – Mobile 36,500

Total Website Visits – Standard 215,273

Total Website Visits – Mobile 59,926

Room for Local Solutions

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– For new Levi’s Stadium, VTA needed to maximize throughput and minimize boarding time

– Solution: Encourage regular riders to use Clipper and others to use new mobile app • Developed and maintained by third party • VTA-branded and -marketed • Mechanisms for visual inspection • Customer pays small transaction fee • Sell tickets by event • Support family ticket management • Provides reporting

Smart Card Program Landscape – North America

Planning for the Next-Generation Clipper System

Include all of the regional agencies

Use lessons learned to establish requirements

Get the system that is best for the Bay Area

• System limitations – System architecture is from the late 90s, device components approaching end-

of-life – Complex regional policies limit flexibility

• Preparing for new procurement – Executive, Steering and Long-Range Committees meeting regularly – Work on vision for new system, concept of operations, and fare simplification

underway

Simple to use Easy to obtain Flexible design

Executive Committee Steering Committee Planning Committee

Customer experience Cost effective Seamless travel

For More Information, Contact:

Carol Kuester Director, Electronic Payments MTC 510.817.5853 ckuester@mtc.ca.gov

Visit www.clippercard.com

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Clipper Improvements and Innovations

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Area New Feature or Service

Description Result

Retail Channels Mobile website Mobile optimized version of web site

Enables real-time card registration, order placement and service information on mobile phone.

Back office Collection, Backup Funding & Reconciliation Manager

Integration of financial, order and smartcard systems to match orders, delivery and payments

Facilitates automatic refunds for undelivered orders, back-up funding sources and payment collection services

Customer Service Institutional Programs

Added support for institutional pass migration to electronic form

Operators able to introduce electronic replacement for paper passes to track use and optimize institutional pass programs

Data Analytics Clipper Analytics Data Store

Low-cost ride transaction level data analytics service using Cloud-based tools.

Analyst delivering 2-3 unique multi-modal and transfer insights per week to operators on approaching 1B Clipper® transactions for under $3500/month.

Risk Management Independent SSAE 16 Audit Report

Annual Certified 3rd Party Audit of System and Financial Controls

Reducing need for costly multiple operator audit procedures through independent continuous risk management procedures

Financial Settlement Enhancements

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Situation: – Clipper orders processed through card-based system – Orders and payments handled separately – Many manual steps to perform customer service Solution: – Facilitate automatic refunds for undelivered orders, back-up

fund source and payment collection – Integrate data from multiple order, delivery, payment

systems to account for web, retail, benefits channels – Match fulfillment to order to payment data – Automate key exception conditions, such as redelivery or

refunds for undelivered orders to save labor costs

Engaging Our Customers

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