Creating a Strategy for an Electronic Fare Payment System SEPTA s New Payment Technologies Project

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1 Creating a Strategy for an Electronic Fare Payment System SEPTA s New Payment Technologies Project

2 Agenda Overview Vision and Project Goals Project Planning Implementation

3 Overview

4 SEPTA Profile Service Area Philadelphia & 4 counties 2,202 square miles 3.3 million population 5 th largest SMSA

5 Services and Ridership Modes Totals Vehicles 1, ,244 Routes Annual Trips 119,850,700 57,081,000 35,451,000 22,166, ,549,000

6 Fare Media by Type - Transit Transit Ridership School 7% Seniors 9% Other 2% Adult Cash 12% Tokens 27% Passes 43% Adult Cash Passes Tokens School Seniors Other

7 Fare Media by Type - Railroad Tickets 19% Seniors 3% Railroad Ridership Other 6% Adult Cash 8% Passes 64% Adult Cash Passes Tickets Seniors Other

8 Vision and Project Goals

9 Project Vision Dynamic business model merchant approach Customer focused, offering payment options Unrestricted by technology changes Expand products and create new revenue streams

10 Project Goals Improve Customer Service Modernize and Upgrade Equipment & Systems Strengthen Financial Accountability Improve Data Collection and Usage Build in Flexibility for Growth and Future Technologies

11 Create a Merchant Approach Tap/wave a contactless card or device of their choice at point of entry Simple yes/no acceptance message No receipt issued

12 Project Planning

13 Approach Planning Study 2006/07 System Assessment & Performance Develop & Evaluate Alternatives Concept of Operations Technical Requirements 2008 RFI/RFP

14 Findings Revenue collection system had reached obsolescence, but equipment was in good repair Unable to create a transactional payment system with current technology Fare collection cost was $0.18 per dollar Options for a new system Card Based Open Payment Hybrid

15 SEPTA Research: Customer Use of Payment Systems 69% 62% % Yes, Own/Use 35% 14% Debit Card Credit Card EZ Pass Account Pay Bills Online Base: Riders who provided an answer. Q20m. Do you have a debit card?; Q20n. Do you have a credit card?; Q20s. Do you have an EZ Pass account? ; Q20r. Do you pay your bills online?

16 SEPTA Research: Customer Debit/Credit Card Use 53% % use debit or credit card for each type of purchase 40% 39% 34% 30% 21% 14% Groceries Small purchases (e.g. WaWa/7-11) Online purchases Gasoline Prescription purchases EZ Pass None of the above Base: Those who have a debit or credit card and provided an answer. Q20o. Do you use your debit or credit card for:

17 SEPTA Research: Would you consider using your credit or debit card to pay the fare to ride SEPTA? 60% 50% 40% 30% 20% 10% 0% Railroad City Bus City Trolley Market Frankford El/Broad Street Subway Suburban Bus/Trolley Yes Probably Probably Not No

18 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% SEPTA Research: Do you have a cell phone or PDA (personal digital assistant)? Railroad City Bus City Trolley Market Frankford El/Broad Street Subway Suburban Bus/Trolley Yes No

19 Payment Trends Leading to New Payment Technologies for Transit Transit Currency Magnetics Contactless (proprietary) Contactless (bank standards) Coins Tokens Increased Convenience 100+ Years

20 U.S. Transit Operators With Contactless Smart Cards

21 NPT Replaces the need to obtain transit currency......with new payment options for riders...

22 NPT Accepts All Payment Forms Use any compliant form factor Whatever is in your pocket SEPTA Card Cell phones Building Access ID Cards Driver s license Government-issued cards Contactless credit and debit

23 Fare Payment Works the Same as a Small Retail Purchase Wired Network Wireless Network Transit Payment Platform Bank Card Processing

24 Distribution Channels for SEPTA Cards Fare Vending Machines Website & Telephone SEPTA Sales Locations Gift Card Racks Other Sales Outlets

25 Implementation

26 Bus and Trolley Implementation Details Upgraded Farebox On Board Reader Operator Control Display (OCD)

27 Subway-El Implementation New or Upgraded Turnstiles Fare Vending Machines

28 Regional Rail Implementation Conductor Handheld Device New Fare Gates Platform Validator

29 Mobile Payments is the New Frontier for Technology, Payment and Communication Companies

30 NPT Project Schedule Proposals already received from multiple vendors Award in summer 2011 Completion of complementary projects: Farebox upgrade Subway-elevated fiber Station designs Electrical/communications designs Next Step: Address Fare Policies

31 NPT Implementation Phase I: Design & Testing Customer Support Call Center, E-commerce site Field testing of components Phase II: Initial Deployment Market-Frankford and Broad Street Bus and Trolley Regional Rail Center City Stations Phase III: Complete Deployment Market-Frankford and Broad Street Regional Rail Paratransit Parking

32 Conclusion SEPTA is poised to move forward with a state-of-the electronic fare payment system. SEPTA s Vision of Open, Electronic Payments is being adopted by most major U.S. transit agencies, including: Chicago Washington, D.C. Toronto London New York

33 Thank You

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