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Tuesday, June 20th, 2017
Caravelle Saigon, Ho Chi Minh City
NFC IN PUBLIC TRANSPORTCHARACTERISTICS, CHALLENGES, & TRENDS IN SOUTHEAST ASIA
TODAY’S SPEAKERS
2
Namrta Bangia
Associate Director
Global Mass
Transit
Vu Phan Minh Tri
Div. Head of Technical
– Procurement
MAUR
Joerg Schmidt
Transport SIG
Chair
NFC Forum
Sammy Kam
Technical Director
Octopus Cards
Ltd.
Hiroshi Iwamoto
Asst. Mgr- IT & Suica
Bus. Dev. HQ East
Japan Railway
Company
Trevor Findley
Sr. Program
Manager
CH2M
Kelvin Lim
Sr. Mgr, Asst. Chief
Specialist
Land Transport
Authority
ROUNDTABLE DISCUSSION
3
Moderator
Namrta Bangia
Associate Director
Global Mass
Transit
Alexander
Rensink
co-Chairman
NFC Forum
Vu Phan Minh Tri
Div. Head of Technical
– Procurement
MAUR
Joerg Schmidt
Transport SIG
Chair
NFC Forum
Sammy Kam
Technical Director
Octopus Cards
Ltd.
Hiroshi Iwamoto
Asst. Mgr- IT & Suica
Bus. Dev. HQ East
Japan Railway
Company
Trevor Findley
Sr. Program Manager
CH2M
AGENDA
Advancing Near Field Communication Technology4
Time slot Topic
3:30 – 3:40 pm Introduction to NFC Forum Activities for Transport Market and Major Milestones |
Alexander Rensink, NFC Forum co-Chairman
3:40– 4:00 pm Transport and Ticketing Trends and Outlook in Asia
| Namrta Bangia, Associate Director, Global Mass Transit
4:00– 4:20 pm Introduction of Ho Chi Minh City Urban Rail System | Vu Phan Minh Tri, Head of Division of
Technical Procurement, Management Authority for Urban Railways (MAUR)
4:20 – 4:40 pm The NFC Experience in Transit System Singapore but not without Challenges | Kelvin
Lim, Senior Manager and Assistant Chief Specialist, Land Transport Authority
4:40– 5:00 pm Octopus Journey into Mobile World | Sammy Kam, Technical Director, Octopus Cards
Limited
5:00– 5:20 pm How NFC & Mobile Suica Make Public Transport More Open, Versatile, and Interoperable
| Hiroshi Iwamoto, Assistant Manager, IT & Suica Business Development, East Japan Railway
Company
5:20– 5:40pm A Mobile Revolution: Past, Present and Future of Transport Payments in the U.S. | Trevor
Findley, Senior Program Manager, CH2M
5:40– 6:00 pm NFC Forum Harmonization Overview: Successful Adaptation through a Comprehensive
Partner Network | Joerg Schmidt, NFC Forum Transport SIG Co-Chair
6:00– 6:30pm Roundtable Discussion: Mobile Adoption in Public Transport -- Obstacles and Triumphs
| Moderated by Namrta Bangia, Associate Director, Global Mass Transit
6:30– 7:30 pm Networking & Happy Hour
Alexander Rensink, Co-Chair, NFC Forum
VISIONFC Transport Summit
June 20, 2017, Vietnam
Introduction to NFC Forum Activities for Transport Market and Major Milestones
THREE CHEERS FOR IOS!WELCOME TO THE NFC PARTY!
Advancing Near Field Communication Technology6
● Approximately two billion smartphones in the world read NFC Tags anytime, anywhere*
● Consumers will see an explosion of uses in IoT, retail, automotive
and public transportation
● NFC is a horizontal technology like Bluetooth, Wi-Fi, Cameras, etc.
*Statista: https://www.statista.com/statistics/263441/global-smartphone-shipments-forecast/
NFC FORUM’S MISSION
Advancing Near Field Communication Technology7
The NFC Forum brings the convenience of NFC technology to life.
We empower organizations to deliver secure, tap-based interactions with an intuitive,
reliable experience to users around the globe.
Or in technical terms: The NFC Forum stands for the open and interoperable
implementation of NFC technology.
Specifications &
Application
Documents
Compliance &
InteroperabilityBranding &
Networking
THE NFC FORUM REPRESENTS
Advancing Near Field Communication Technology8
All of the world’s major:
● Chip vendors
● Payment service providers
● Smart phone manufacturers
● Mobile operating system providers
● 150 member companies
● Sponsor Members:
THE NFC FORUM COLLABORATES
Advancing Near Field Communication Technology9
Collaborations with industry consortia:
Advancing Near Field Communication Technology10
Technology trends creating opportunity for NXP
80% of the world’s economic value will come
from connectivity improvements to existing public transport, cars, devices, and Internet of Things1
Source 1: Euromonitor; Gartner; ARM Holdings; UBS; Center for Strategic and International Studies;
McAfee, NXP analysis, International Telecommunications Union
Source 2: Juniper Research
Everything
connected
Everything
smartEverything
secure
1B+ additional
consumers online,
50B+ connected
devices1
By 2020, one in two
payment cards will be
contactless2
By 2021, 20% of retail POS
transaction value handled
by mobile-POS2
NFC EVERYWHERE
NFC MARKET GROWTH
Advancing Near Field Communication Technology11
Source 1: IHS
Source 2: Markets and Markets
Source 3: Strategy Analytics
Source 4: Juniper
2.2 billion NFC-enabled handset shipments by 20201
• NFC adopted across all handset OEMs, covering all OSs
• 72% by 20203, up from 52% in 20163 and 18%1 in 2013
• Apple Pay, Samsung Pay, Android Pay, etc.
• Global NFC market to exceed reach 21.84 Billion by 20202
TRANSPORT NFC MARKET GROWTH
Advancing Near Field Communication Technology12
Mobile ticketing market to grow 16.71% CAGR, 2017-20211
Drivers
● By 2018, rapid rise of NFC mobile ticketing apps
Replace paper-based tickets and contactless card solutions
● Customer demand for more convenient, mobile ticketing options
● Rise of NFC-enabled smartphones and wearables capable of
handling mobile ticketing services
● Transport operators, like JR East and Leap Card, that have migrated
to NFC mobile ticketing services from contactless card platforms to
enable passengers to book and validate tickets quickly
Source 1: WhaTech, Transport Market Research
Source 2: NFC Forum Transport White Paper
http://nfc-forum.org/transport-stakeholders/
NFC FORUM PUBLIC TRANSPORT RFINTEROPERABILITY INITIATIVE
Advancing Near Field Communication Technology13
OUR GOAL = accelerating the implementation of NFC-enabled mobile ticketing
JOIN THE CONVERSATION AT THE NFC FORUM
● Grab your ticket to access useful
Public Transport resources
White papers
Flyer
Case studies
Event information
Blog posts
Advancing Near Field Communication Technology14
http://nfc-forum.org/nfc-and-transport/
THANK YOU!
For more information on how to get
involved: http://nfc-forum.org/
Advancing Near Field Communication Technology15
TRANSPORT AND TICKETING TRENDS AND OUTLOOK IN ASIA
Namrta Bangia
Associate Director, Global Mass Transit
VISIONFC Transport SummitTransport and Ticketing Trends and
Outlook in Asia
Namrta BangiaAssociate DirectorGlobal Mass TransitJune 20, 2017
©www.globaltransmission.info
Current Status of Public Transport in Asia
©www.globalmasstransit.net
Asia has some of the biggest metrorail systems in the world.
Asia’s metrorail (includes Pacific) network accounts for around 38% of the total operational network.
In Asia, China has the most extensive operational metro network. The national government has
undertaken massive investment programmes to improve connectivity and boost economic growth. The 10
operational projects in China have a total length of 2,257 km and cover 1,432 stations.
Metrorail network (km)
Global Mass Transit Research
analyzed 81 key operational
metrorail projects in the world
with a total network of over
9,800 km and 7,400+ stations.
Of these, nearly 25 operational
projects covering a network of
3,790 km and 2,700+ stations
were analyzed in Asia.
Key takeaways
Source: GMT Research
©www.globalmasstransit.net
Development of light-rail systems in Asia is a relatively recent phenomenon as compared
to their development in North America and Europe.
At 32 years old, the Manila LRT is the oldest system in the region.
Within Asia, the Southeast Asian countries have more mature systems; the light rail network spans
over 178 km in four cities of Bangkok, Kuala Lumpur, Manila and Singapore.
In China, the development of light rail systems is rapidly expanding. The first system was introduced
in 2002 and the network has expanded to over 100 km.
Global Mass Transit Research
analyzed 58 key operational
light rail projects in the world
with a total network of over
3,410 km and 3,800+ stations.
Of these, nearly 10
operational projects covering a
network of over 360 km and
260+ stops/stations were
analyzed in Asia.
Key takeaways
Light rail network (km)
Source: GMT Research
©www.globalmasstransit.net
An analysis of metro rail and light rail ridership in nearly 80 cities across the world reveals
that some of the busiest systems in the world are in Asia.
Average daily metrorail ridership (million passengers)
Annual light rail ridership (million passengers)
Source: GMT Research
©www.globalmasstransit.net
Asia has an extensive BRT network, accounting for nearly one-fourth of the BRT network
in the world.
China is at the forefront of BRT
development. It accounts for nearly
half of the total BRT network in Asia,
and around 60 per cent of the total
daily ridership.
Taiwan has the second highest
ridership; three cities have a total
BRT network of over 107 km and
witness average daily ridership of over
1.2 million passengers.
In Indonesia, Transjakarta operates
a network of over 200 km in Jakarta
and witnesses average daily ridership
of 370,000 passengers.
Seven cities in India have already
opened BRT systems, even though
each system is operating a very small
network. These systems together
span 174 km and cater to 340,122
passengers per day.
BRT network in Asia (km)
Key takeaways
A total of 38 cities in Asia have BRT systems, which
together span over 1,300 km.
These systems witness average daily ridership of over 6
million passengers.
Source: GMT Research, Global BRT Data
©www.globaltransmission.info
Ticketing Trends
©www.globalmasstransit.net
Fare media in 105 major cities across the world
Cities with existing well-developed public
transit systems are switching to advanced
ticketing options for greater customer
engagement and operational efficiency. Cities
with new systems underway are directly
adopting off-the-shelf products for the
deployment of electronic ticketing.
There is emphasis on integration and
interoperability not just across transit modes
(same or multiple operators) but also across
various levels such as at the regional,
national, or even international level, and
across several services such as parking, retail
purchases, identity verification, and building
access.
The penetration of smartphones and
increase in the deployment of NFC devices
has favoured transit agencies because the
customers can now bring their own fare
media and more readily engage in the
advanced fare collection system.
Global trends
There has been an increase in the uptake of electronic ticketing across the world.
Source: GMT Research
©www.globalmasstransit.net
However, penetration of NFC-based mobile ticketing remains low across the world.
Of the 105 cities analyzed by Global
Mass Transit Research, 26 cities have
deployed integrated NFC technology
in mobile phones and 21 cities have
deployed the mobile point-of-sale
solutions.
Europe leads the way in the
deployment of mobile ticketing in
public transport systems.
Europe is followed by North
America, where there have been many
deployments in the last one year.
Asia still has a lot of catching up to
do. But it is also the region with the
maximum potential for mobile
ticketing.
Key takeawaysMobile ticketing across the world
Source: GMT Research
©www.globalmasstransit.net
Public transport systems in Asia have a high level of AFC adoption.
Ten cities have a hybrid fare collection
system, utilising both paper tickets and
smartcards.
Hybrid ticketing
Fare media in 27 major cities across Asia
The trend in adoption of mobile ticketing
based on NFC technology is similar to rest
of the world.
Of the 27 major cities, 10 are using
mobile ticketing (NFC-based and mPOS
based).
Mobile ticketing
12 out of 27 major cities adopting an
entirely integrated ticketing system across
transport modes and operators
Integration
Source: GMT Research
©www.globalmasstransit.net
Asian countries such as Japan and South Korea have been pioneers in the deployment of
NFC-based mobile ticketing in public transport.
Japan South Korea
Key agency • East Japan Railway Company (JR East) • Ministry of Land, Infrastructure and Transport (MOLIT), the Korean Communication Commission (KCC)
Key initiatives • JR East expanded its Suica contactless card solution to mobile wallet-enabled phones with Mobile Suica.•Within two years, JR East reported that there were one million Mobile Suica users.• Thereafter, Mobile Suica was made interoperable with other IC card ticket schemes throughout Japan and to NFC-enabled Android devices.•Apple Pay also launched in Japan specifically to work with Suica and JR East.
• Interoperability between Cashbee Cards (Busan) and T-Money (Seoul) and later nationwide interoperability achieved.• South Korea’s MNOs moved to SIM-based NFC for transportation• Samsung introduced NFC-enabled handsets and terminals.• Gemalto, LG CNS and Coregate provided a solution that included a personalised T-money application preloaded for transit, prepaid and automatic top-up into the SIM cards.• South Korean and Japanese MNOs tied up to create cross-border NFC services to make payments on public transport and convenience stores on a pilot basis.
Timeline •The initiative was launched in 2006.• It was expanded across the country in 2011.• Apple Pay launched in 2016.
• Interoperability initiative launched in 2008. • Delivery of NFC SIM cards and introduction of NFC handsets began in 2011.• Nationwide interoperability achieved in 2014.
Source: GSMA, NFC Forum, GMT Research
©www.globaltransmission.info
Outlook and Opportunities
©www.globalmasstransit.net
Asia has the fastest growing urban rail network in the world.
Mode-wise share of projects in Asia Pacific
Global Mass Transit Research analyzed 500 upcoming
urban rail projects in the world with a total network
of over 8,000 km.
Of these, nearly 196 projects, which will together
span 3,824.8 km, will be developed in Asia
(including Pacific region) by 2030 at an investment of
over USD320 billion.
The maximum opportunity lies in metrorail
projects. A total of 143 projects, which will together
span 2,744.82 km, are planned at an investment of
USD249,812 million.
India has more than 72 projects coming up. These
projects will together span 1,312 km and require an
investment of over USD68.4 billion.
China has more than 39 projects coming up. These
projects will together span more than 805 km and
require an investment of USD71 billion.
Vietnam has four new systems coming up. These
systems involve the development of 18 projects
covering 378 km and requiring a total investment of
USD28 billion.
Key takeaways
Longest upcoming projects
Chennai Metro Phase II: 104.6 km
Seoul Light-rail: 85.41 km
Jakarta MRT East-West Corridor: 87 km
Kuala Lumpur ERL Extension: 90 km
Guangzhou Metro Line 18: 62.7 km
Source: GMT Research
©www.globalmasstransit.net
Asia is the centre of activity for BRT development.Region-wise upcoming BRT network
Longest upcoming projects till 2020
Dhaka BRT: 42.4 km
Da Nang BRT Line: 24.9 km
Karachi BRT Green Line: 27.5 km
Kuala Lumpur-Klang BRT Corridor: 34 km
Cebu and Ho Chi Minh City BRT systems: 23 km
Global Mass Transit Research analyzed 50 upcoming BRT projects in the world with a
total network of over 1,000 km to be developed by 2030.
Of these, 11 projects, which will together span
over 260 km, will be developed in Asia (including
Pacific region) by 2020.
Some of the biggest projects are coming up in
Vietnam, Pakistan, and Bangladesh.
Source: GMT Research
©www.globalmasstransit.net
Mobile subscriber and smartphone growth pivoting to Asia.
Source: GSMA, GMT Research
4.8 billion 5.7 billion
Mobile subscribers
2016 2020
Global Asia Pacific to drive growth
3.8 billion 5.7 billion
Smartphone growth
2016 2020
860 million
1.9 billion
•Asia Pacific will account for nearly two-thirds (571 million) of this increase.•India (310 million) will be the primary driver of this growth.
•Asia Pacific will account half of the new smartphone connections forecast globally by 2020. • India will account for one-fifth of the new smartphone connections globally.
Smartphone adoption rate 2016 (%)63% by
2020
©www.globalmasstransit.net
By 2020, Asian countries will lead in population growth and smartphone adoption.
By 2020, the world population is projected to reach 9.6 billion.
Amongst the top 10 countries in terms of population, six will be Asian countries.
Six Asian countries will also lead in smartphone additions.
India, China and Indonesia will lead in net additions in smartphone connections during 2016-2020.
Top 10 countries with highest population in 2020 (million)
Key takeaways
Source: The Economist, GSMA, GMT Research
Net additions in smartphone connections 2016-20 (million)
©www.globalmasstransit.net
Firm plans for deployment of mobile ticketing are limited in scope.
An analysis of 105 cities states that more than 50 cities have announced plans to either install new fare
media such as contactless smartcards, bank cards and mobile ticketing; or to expand their existing AFC
systems across multiple modes and operators for integrated ticketing; or to upgrade ticketing
infrastructure and adopt AFC.
13 out of 26 cities in Asia have plans to deploy AFC systems.
Only three cities in Asia have shared plans to deploy mobile ticketing. Of these, two will deploy
mobile ticketing using QR Codes.
Key takeaways
OpportunityNumber of
citiesCities
Contactless smartcards 7 Astana, Beijing, Ho Chi Minh City, Hyderabad, Kochi, Lucknow, Nagpur
Bank cards 2 Bengaluru, Kochi
Mobile ticketing 3 Singapore (NFC mobile ticketing), Delhi, Mumbai (QR Codes)
Fare media integration 4 Bangkok, Chennai, Delhi, Kuala Lumpur
Deployment of AFC 2 Chengdu, Nagpur
Cities with plans for AFC procurement in Asia
This points towards a huge unexplored opportunity for the deployment of NFC.
Source: GMT Research
©www.globalmasstransit.net
Challenges and the way forward
A greater opportunity exists to achieve interoperability on a global scale.
For NFC to succeed in the marketplace, NFC mobile devices have to support guaranteed
technical interoperability within the globally relevant contactless infrastructures and
applications.
Most of the transport operators involved are waiting for NFC handsets to become more widely available before moving towards a commercial deployment. In some cases, PT operators still
need to resolve some technical or commercial issues before they can move to full-scale deployment.
The fragmentation of contactless specifications is a key issue. The relevant standards and specifications have developed differences leading to interoperability issues. PTOs have to test
NFC mobile devices for feasibility before they can be approved for use in their particular systems.
A final word
Source: NFC Forum, GMT Research
The mobile payment market is very fragmented because of the nature of the country-specific rollouts. This market is likely to be fragmented for a number of years to come.
Unlike EMV cards, there is also likely to be no global mobile payment solution that can compete with cards in terms of scale or geographical coverage.
©www.globaltransmission.info
About us
©www.globaltransmission.info
A monthly newsletter that has 10 distinct sections:
• Features: Analytical, insightful and topical write-ups on major trends
and developments
• News: Latest news and developments from across the world, with
sections on North America, Latin America, Asia-Pacific, Europe and
Middle East & Africa
• TA/TSO Focus: Profile of a leading TA/TSO operator, covering its
history, present status and future plans
• Policy Review: An examination of recent policy and regulatory
initiatives
• Spotlight: A detailed look at a specific topic or area of interest
• Data & Statistics: Tables and charts with latest information
• Finance: Reports on major debt, equity, project financing, M&A deals
• Project Update: Current status of key projects
• Company News: News on equipment and service providers
• Tenders & Contracts: Key information on open tenders and contracts
Monthly market intelligence report
A weekly report that
provides a summary of
key events and
developments across the
world, categorised by
region.
Weekly newsletter
Online access to current
and previously
published weekly
newsletters and monthly
reports, with fully
searchable archives.
www.globalmasstransit.
net
Website
Base information service
Global Mass Transit Research is a leading provider of information and analysis on the global mass transit industry. We publish newsletters and market intelligence reports, offer multi-client and custom research, and organize thematic conferences on crucial and topical issues relevant to industry.
1,000 Global Rail Projects Database 2017
500 Global Urban Rail Projects Database 2017
Top Transport Agencies/Authorities 2016
Global Transit Fare Collection Systems Report 2016
Global Light-Rail Projects Report 2017
Global Metro Projects Report 2016
Provides decision makers with up-to-date and comprehensive information, analysis, and businessintelligence on the global mass transit industry.
Presents the latest available data and statistics on infrastructure and capital expenditure and offersforecasts for network growth, deployment of latest technology and investment.
Includes key trends, issues, and challenges. Offers insights into regulatory and policy developments and their impact. Tracks major mass transit projects. Profiles leading transit authorities/operators. Covers specific sub-segments such as fare systems, rolling stock, signalling, etc.
Multi-client research
Multi-client research reports
Recent reports
Transit State of Good Repair in Washington D.C., US (2012, 2013, 2015, 2016 and 2017)
Transit Ticketing & Fare Collection APAC in Singapore (2016 and upcoming on 6-7 September 2017)
Asset Management for Urban Rail Systems in Amsterdam, The Netherlands (upcoming on 12-13 September 2017)
Wireless Communications in Transit in Washington D.C., US (2016 and 2017)
Smart Delivery of Transit Capital Investment Projects: New Starts, Small Starts and Core Capacity (2015) in Washington D.C., US
Energy Efficiency in Public Transportation, Brussels, Belgium (2013)
International Best Practices in Transit Infrastructure Financing in New Orleans, US (2011)
Conferences
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Contact
©www.globaltransmission.info
For further information, please contact:
Namrta Bangia
Global Mass Transit
B-17, Qutab Institutional Area, New Delhi - 110016
M: +91 999 900 8654
W: www.globalmasstransit.net
Twitter: GMT_Research
THE CURRENT SITUATION AND DEVELOPMENT PLANNING FOR PUBLIC TRANSPORTATION OF HO CHI MINH CITY
Vu Phan Minh Tri
Head of Division of Technical Procurement, Management Authority for Urban Railways (MAUR)
THE NFC EXPERIENCE IN TRANSIT SYSTEM SINGAPORE BUT NOT WITHOUT CHALLENGES
Kelvin Lim
Senior Manager and Assistant Chief Specialist, Land Transport Authority
OCTOPUS JOURNEY INTO MOBILE WORLD
Sammy Kam
Technical Director, Octopus Cards Limited
Octopus Journey into Mobile World
NFC FORUMVISIONFC Transport Summit
20 June 2017
Octopus Journey
Coins & Paper Magnetic Contactless Mobile Cashless Society
45
Octopus Shareholding Structure
Octopus Holdings Limited
MTR Corporation (57.4%)
Kowloon-Canton Railway (22.1%)
Kowloon Motor Bus (12.4%)
City Bus/ New World First Bus
(5.0%)
New World First Ferry (3.1%)
46
47
Transaction Counts Processed Daily
Transaction Amount Processed Daily (US$)
000 0 0, ,014>
42 00, ,0$ 000>
Supermarket
48
Bus
Train
Ferry
Personal CareFood & BeverageConvenience Store
Widely accepted in Mass Transportation and Retail SectorsIndispensable in Hong Kong everyday life• Number of terminals: >76000 (vs. contactless credit card 17000)• Coverage of retail outlets: 20000 (vs. contactless credit card
6800)
Note: Txn counts of payment cards including credit/ debit cards and Octopus using in transportation and retail (Q1-3 2016)
49
> 50% Octopus Payment Value Contributed by Retail
90% Txn Counts of Payment Cards Contributed by Octopus
1997TRANSPORTATION
2016RETAIL
DOMINANT
50
Online Payment Service (2014)
Octopus Mobile SIM (2013)Octopus Mobile App (2012)
O! ePay: Network-based Stored Value Account (2016)
Online & Mobile Service Offerings
51
• Joint development among Octopus, Sony and Gemalto
• Octopus SIM with NFC Handset working on all 76,000 Octopus readers
Octopus Mobile SIM
Different Mobile Payment Options for Different Customer Needs
P2P PaymentOnline Payment
52
Proximity Payment
Leverage Octopus ID for Mobile Loyalty Scheme
Register Octopus Card ID in merchant mobile app
Tap Octopus Card and earn OK dollars & e-stamps automatically
53
Remote Mobile Ordering with Payment Capability
Register Octopus Card ID in merchant mobile app
Make order via app remotely
Pay by Octopus at the kiosk in the store and take the pre-ordered food
54
Card Mobile
Dependency on network
All-Inclusive Hybrid Products to Serve Every HK People
No dependency on network
Quick & consistent 0.3ms
Wide coverage age 3+
Interactive
Diversified applications
Handy
55
56
Mass Appeal Mobile Wallet Platform to Manage and Distribute Marketing Offers and mCoupons
Support posting/ sharing in social media/ fulfillment
57
e-ticketing/ e-Pass on Mobile
Purchase e-Ticket
XXXX Ticketing Office
E-Pass available even if the phone is offline“My Passes” consolidates all e-tickets
58
QR Code Payment for Small Merchant Segment
59
Mobile Wallet is Heating Up
• Security concern
• Tipping point to change usage habit
• Convergence of mobile payment applications
• Market education
Keys to Mobile Payment Taking Off
Customer Experience
Value Creation
Market Confidence
Customer Incentives 60
令 生 活 更 輕 鬆Making ever yday l i fee a s i e r
Make it Right
Make it Smart
Make a Difference
61
Thank You
HOW NFC & MOBILE SUICA MAKE PUBLIC TRANSPORT MORE OPEN, VERSATILE, AND INTEROPERABLE
Hiroshi Iwamoto
Assistant Manager, IT & Suica Business Development, East Japan Railway Company
A MOBILE REVOLUTION: PAST, PRESENT AND FUTURE OF TRANSPORT PAYMENTS IN THE U.S.
Trevor Findley
Senior Program Manager, CH2M
A Mobile Revolution: Past, Present & Future of Transport Payments in the U.S.
VISIONFC Transport SummitJune 20, 2017
66
CH2M is an international design and engineering firm with a fare collection focus in North America
Clipper®, San Francisco MTC
RFCS, Seattle
TAP, LACMTASmarTrip, WMATA
SmartLink, PA of NY/NJ
TranslinkVancouver
Integrated Ticketing System, Sydney PTTC
Integrated Ticketing Translink Brisbane
Automated Ticketing System, MelbournePublic Transport Corp.
Integrated Fares System, Auckland
EZ Link Card CompanySingapore Smart Card System
Denver RTD
Tri Rail EASY Card South Florida
Prestige Transport for London
TransLink SystemThe Netherlands
LombardiaInformaticaMilan
Compass Card San Diego
Smart Card FPS, Honolulu
CEN/ISSWorkshop
Brussels
Smart Card FPS San Jose VTA AFCS & Mobile Ticketing
Baltimore
Fare Collection & Parking System, PATCO
TTA Electronic FPSNorth Carolina
VentraCTA & Pace
Electronic FPS Phoenix
FPS, Austin
MetroTasHobart
Electronic Road pricing with bank issued smart card LTA Singapore
National tolling & road use charges with GPS & DSRC, Wellington
Tolling with DSRC, GPS & smart cards Hong Kong SAR
eFare, Portland TriMet
Open Payment Strategy UTA
AFCS Design St Louis Metro
Presto CardToronto
Smart Card Irish Rail
Parking Payments ParkeonParis
NOTE: FPS = Fare Payment System,AFCS = Automated Fare Collection System
67
Bringing together U.S. transport, payment, and mobile industries is a complex problem
• 6,792 Transport Agencies
• 5,231 Card-Issuing Banks
– 1.1 Billion Issued Cards
– 453 Million Active Accounts
• 5 Mobile Network Operators
– 417 Million Mobile Subscribers
– 55% Android, 44% iOS, 1% Other
Transit Agencies
Mobile Network
Operators
Card Issuers
68
U.S. transport agencies are at vastly different stages of technology deployment
Paper
Tickets
1st Generation
Smart Cards
Visual &
Barcode Mobile Ticketing
Magnetic
Tickets
Contactless Open
Payments
Cash
Tokens
Closed-Loop
NFC
69
U.S. transport agencies are at vastly different stages of technology deployment
Paper
Tickets
1st Generation
Smart Cards
Visual &
Barcode Mobile Ticketing
Cash
Magnetic
Tickets
Contactless Open
PaymentsTokens
Legacy Systems:
New York, NY (MTA)
Philadelphia, PA (SEPTA)
Most Small- to Mid-Size Agencies
Closed-Loop
NFC
70
U.S. transport agencies are at vastly different stages of technology deployment
Paper
Tickets
1st Generation
Smart Cards
Visual &
Barcode Mobile Ticketing
Magnetic
Tickets
Contactless Open
Payments
1st Generation Systems:
Boston, MA (MBTA)
Washington, DC (WMATA)
Seattle, WA (ORCA)
San Francisco, CA (Clipper)
Los Angeles, CA (LACMTA)
Closed-Loop
NFC
Tokens
Cash
71
U.S. transport agencies are at vastly different stages of technology deployment
Paper
Tickets
1st Generation
Smart Cards
Visual &
Barcode Mobile Ticketing
Magnetic
Tickets
Contactless Open
Payments
Closed-Loop
NFCNext-Gen Systems:
Chicago, IL (CTA)
Portland, OR (TriMet)
Tokens
Cash
72
Most agencies are moving to NFC payment, but the path differs based on their current situation
• Legacy Systems have the most straightforward path to a “greenfield implementation”
– Open Architecture (Open APIs)
– Account-Based/ID-Based
– Real-Time (Cellular) Communications
– EMV Compliant Design
• 1st Generation Systems have a tougher choice between upgrade or “burn & replace”
– Proprietary systems with restrictive contracts
– System architecture and devices incompatible with EMV acceptance
– Customer transition is difficult under either scenario
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Agencies are using non-NFC mobile ticketing as a way to quickly introduce new technology
• Efficient deployment as stand-beside solution– Turnkey solutions available
– Low or no infrastructure costs
• Shows innovation internally and to the public – Strong customer demand
– Aligns well with existing operating models
• Strategies for acceptance and transition vary– Optically scanned tickets may be fully integrated into account-/ID-based systems
– Some see mobile ticketing as only a stepping stone to closed-loop NFC payment
74
Technology and the introduction of NFC payment into the transport space continues to evolve
Thank You
Trevor FindleySr. Program ManagerElectronic Payment [email protected]+1 (860) 478-3399
NFC FORUM HARMONIZATION OVERVIEW: SUCCESSFUL ADAPTATION THROUGH A COMPREHENSIVE PARTNER NETWORK
Dr. Joerg Schmidt
1st Co-Chair Transport SIG, NFC Forum
● RF interoperability with mobile Public Transport services is reality
● All certified NFC-enabled mobile devices will work with Public Transport systems
● NFC Forum leads interoperability efforts
For latest developments: www.nfc-forum.org
77Advancing Near Field Communication Technology6/20/2017
Key Presentation Take-Aways
The Importance of NFC for the Transport Market
78Advancing Near Field Communication Technology
http://nfc-forum.org/transport-stakeholders/
6/20/2017
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Transforming the NFC Public Transport Experience
● What is the role of the NFC Forum Transport SIG?
NFC Forum Transport SIG acts as a bridge between transport industry stakeholders
● How is the Transport SIG working to increase the adoption of NFC in the Public Transport sector?
Working with key stakeholders in leading standards organizations to harmonize specifications
The NFC Forum took the lead in the harmonization of globally relevant contactless standards for NFC mobile devices:
Gap analysis finalized
Solutions identified and verified
Specification for “Interoperable NFC” for Mobile Devices released and published
806/20/2017 Advancing Near Field Communication Technology
NFC Forum and Contactless Standards
Why are there so many different Public
Transport systems implementations in place?
Requirements to Public Transport systems vary from
country to country or even city to city
Applications and system implementations have to
follow
Services and business cases are typically
optimized for local, frequent users and local
rules
816/20/2017
Public Transport Systems and Interoperability
Advancing Near Field Communication Technology
Interoperability is key to a positive customer
experience
NFC mobile devices will work with Public Transport
readers based on current specifications
Just a few percent of interoperability issues can
mean thousands of disappointed customers every
day
Certified interoperability is mandatory for
deployment and key to business success for
service providers
826/20/2017
Public Transport Systems and Interoperability
Advancing Near Field Communication Technology
How to establish interoperability between
Mobile sector and Public Transport sector?
Synchronize RF-interface specifications for NFC
mobile devices and Public Transport devices
Establish synchronized test and certification
processes for NFC mobile devices and Public
Transport devices
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Public Transport Systems and Interoperability
Advancing Near Field Communication Technology
Mobile sector
NFC Device as fare media or
reader
Interoperability withISO/IEC 14443 / CEN TS 16794 ISO/IEC 18092 EMVCo L1 (CEM only)
Testing according to NFC Forum specifications
Certification by GCF / NFC Forum
Global Public Transport sector
NFC Forum specifies implementation and test of RF-
interface ISO/IEC14443-based PT systems
ISO/IEC18092-based PT systems
CEN TS 16794To be certified by Smart Ticketing Alliance
Implementation and test specifications available.Testing by accredited labs
EMVCobased PT systems
EMVCo Level 1Testing by EMVCo accredited labs
ISO/IEC 14443 based PT systems
ISO/IEC 18092 based PT systems
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Mobile and Public Transport Standardization
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Framework for Interoperability
Interoperability requires continuous cooperation between the relevant standardization bodies as specifications evolve. The NFC Forum has established relationships with the relevant bodies:
Global network for alignment on PT market business requirements
Continuous harmonization of the relevant specifications via liaisons
Base standards
PT-specific standards
Continuous harmonization of the relevant specifications via liaisons
ISO/IEC14443ISO JTC1 SC17 WG8
EMVCo L1EMVCo, LLC
Base standards
CEN TS16794CEN TC278 WG3 SG5
ISO TC204 WG8PT-specific standards IN PROGRESS
866/20/2017 Advancing Near Field Communication Technology
Framework for Interoperability
Global network for alignment on PT market business requirements
Continuous harmonization of the relevant specifications via liaisons
Base standards
PT-specific standards
Continuous harmonization of the relevant specifications via liaisons
ISO/IEC14443ISO JTC1 SC17 WG8
EMVCo L1EMVCo, LLC
Base standards
CEN TS16794CEN TC278 WG3 SG5
ISO TC204 WG8PT-specific standards IN PROGRESS
Interoperability requires continuous cooperation between the relevant standardization bodies as specifications evolve. The NFC Forum has established relationships with the relevant bodies:
Achievements:
GSMA, CEN and Public Transport stakeholders joint working group with NFC Forum completed technical work on interoperability with ISO/IEC 14443
NFC Forum’s interoperability solution proposals accepted
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NFC Forum Public Transport RF Interoperability Initiative
Advancing Near Field Communication Technology
The Interoperability demo shown at the Federal Ministry of Economic Affairs and Energy in Berlin was a big success
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Optimos Interoperability Event 1st Sept. 2016
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896/20/2017
Next Steps: RF Interoperabilitywith PT Infrastructures
http://nfc-forum.org/nfc-and-transport/
Advancing Near Field Communication Technology
90
Cross-border / regioninteroperability
MobilityApplications
Mobile device as default interface to PT services
ID Management
Account-based Ticketing
Integration of Open Payment services
Mobility and mobile platforms are getting more and more important for travelers and commuters , therefore the Transport
SIG has to consider to broaden its scope
6/20/2017
Further potentially Activities of the Transport SIG
Advancing Near Field Communication Technology
NFC Forum-driven work on interoperability has
allowed:
Harmonized specifications for NFC-interface of mobile
devices and ISO-conformant Public Transport
equipment
Alignment on EMVCo standards established
Synchronized test and certification for NFC mobile
devices and Public Transport equipment by respective
bodies
916/20/2017
Conclusions
Advancing Near Field Communication Technology
Leading to the following benefits:
No Public Transport infrastructure changes required
Regional testing or adaptation of mobile handsets is no
longer necessary
Co-existence between NFC Forum and EMVCo
specifications and certifications for NFC mobile devices
provided
All certified NFC-enabled mobile devices will work with
Public Transport systems
Future-proofed NFC interoperability due to continuous
alignments with partners
926/20/2017
Conclusions
Advancing Near Field Communication Technology
We want you to:
Become a leader in the Rapidly Growing NFC Industry
Join the NFC Forum!
For more information on how to get involved:
http://nfc-forum.org/
Thank you!
Questions?
ROUNDTABLE DISCUSSION: MOBILE ADOPTION IN PUBLIC TRANSPORT –OBSTACLES AND TRIUMPHS
95
Moderator
Namrta Bangia
Associate Director
Global Mass Transit
Alexander Rensink
co-Chairman
NFC Forum
Vu Phan Minh Tri
Div. Head of Technical
– Procurement
MAUR
Joerg Schmidt
Transport SIG Chair
NFC Forum
Sammy Kam
Technical Director
Octopus Cards Ltd.
Hiroshi Iwamoto
Asst. Mgr- IT & Suica
Bus. Dev. HQ East
Japan Railway
Company
Trevor Findley
Sr. Program Manager
CH2M