EZ-Link Pte Ltd - A Contactless Smart Card Business Beyond Transport

Transcription

1 EZ-Link Pte Ltd - A Contactless Smart Card Business Beyond Transport Transport Ticketing Jan 2010 AVP, Finance & Admin Jocelyn Luo

2 EZ-Link in Singapore

3 Business Structure Parent Company Approved Bank Approved Stored Value Facility Holder Regulators Card Services Agent Transit Acquirer Non-Transit Acquirer Bus Services Rail Services Retail Services

4 Functional Architecture Virtual Merchants Virtual Merchants Stored Value Facility Stored Value Facility Physical Merchants Physical Merchants Post Pay Facilities Post Pay Facilities Self Service Kiosk Self Service Kiosk Acceptance Acceptance 3rd Party SVF 3rd Party SVF Payment Payment Instrument Instrument EZL Central Clearing/Processing System EZL Central Clearing/Processing System Reload Method Reload Method Source of Funds Source of Funds Auto Top up Auto Top up ATM/Self ATM/Self Service Service Kiosk Kiosk 3 rd Party Bills 3 rd Party Bills Over Over the the Counter Counter Credit/Debit Account Credit/Debit Account Bank Accounts Bank Accounts 3 rd Party Billing Organizations 3 rd Party Billing Organizations Credit Lines Credit Lines Internet Internet Other Stored Value Facilities Other Stored Value Facilities Mobile Mobile

5 The ez-link Card Old Type C Cards Over 10 million cards issued 3,000 card sales daily New Type B Cards 200, ,000 top top ups ups daily daily S$100m S$100m per per month month 60% 60% of of top-ups top-ups via via self self service service machines machines Personalised concession cards 24% Customised / corporate cards 3% Adult anonymous cards 73% Over Over 8 8 million million transactions transactions processed processed daily daily 10.2 million Cards issued

6 Singapore s Public Transport Network 65 MRT stations 19 LRT stations 3,200 buses 261 Bus routes 4,397 Bus stops 22 Bus interchanges 18 Bus terminals Rail Network to be doubled by 2020 Upcoming Lines -Circle Line - Downtown New Lines - Thomson Line - Eastern Region

7 Electronic Road Pricing (ERP) Over 80 ERP Road Toll Gantries Island Wide Approx 500,000 vehicles use ERP monthly Over 700,000 registered vehicles Over 400 Car Parks use ERP technology for payment (EPS) ez-link cards can be used in 2 nd Generation In-Vehicle Units with auto top-up function

8 Key Developments Jan 2002 Incorporation Of EZ-Link Feb 2004 McDonalds acceptance Aug 2003 Auto Top up VISA Card April 2004 Mobile Top Up Trial Aug 2006 EZ-Online Launch Dec 2006 Launch of 1 st Co-Brand Card with EZL Function 1 st Q 2008 Launch of 2 nd & 3 rd Co-Brand Card with EZL Function April 2006 Strategic Alliance With VISA Nov 2006 Showcase NFC Phone with EZL Function Dec 2007 Launch of Singapore Tourist pass

9 Key Developments II Jun 2008 Launch of EZ- Online Station and OCBC Mobile Topup Nov 2008 Acceptance in SMRT Taxi Dec 2008 Launch of 1 st CePAS Card in Singapore & Mass Replacement April 2009 Launch of MasterCard FEVO prepaid card July 2009 Launch of Integrated Season Pass Aug 2009 Launch of PAssion EZL Card & DBS Cobrand Nov 2009 Deployment of Nontransit Terminals Dec 2008 Obtained MasterCard Principal Membership Jan 2009 Launch of EZL Top-Up in DBS ATM & AXS Re-Branding of EZ-Reload Auto Top-up Services Oct 2009 Full cut-over to new SeP system

10 Mass Replacement of ez-link Cards Adoption of new CEPAS standards for stored value purse, using ISO14443B cards Public transport to stop accepting existing Sony cards by 1 Oct 2009 Exercise to replace 8m active cards in circulation from Jan 2009 (9 month replacement period) Replacement channels: 45 Ticketing Sales offices at MRT stations and selected bus interchanges Roving centers at selected bus interchanges 62 Singpost outlets island wide Concession cards replaced directly by post or via mobile centers across 400 public schools One for one free replacement, automatic value transfer between purses *CEPAS Contactless Electronic Purse Application Standard

11 Flexible Platform for Ticketing tap-in, tap-out ticketing closed-loop fare deduction convenient & reduce fare leakage Business Rules focused - contactless = speed - transfer rebates - allow fine fare tweaking & new initiatives Park-and-Ride scheme - subsidized season parking + stored value - convenient, cost-saving win-win

12 Singapore Tourist Pass - Bringing convenience & value - Unlimited travel for 1, 2 or 3 days - Access to merchants benefits & privileges - Exclusive discounts for tickets to attractions - Rent-a-card scheme - Distributed at all visitor centers, airport terminals, selected ticketing offices in MRT stations, via tour operators & other resellers

13 Integrated Season Pass Unlimited travel on train & buses Weekly & Monthly Passes available for sale Insurance for lost passes Merchant benefits & discounts Food & Beverage Hotels Fashion & Lifestyle

14 Expanding Top-Up Channels Move from over-the-counter to self-serve & auto top-ups - high cost of manned counters & cash collection self-service kiosks (GTM, AVM, ATM & 3 rd Party Kiosk) auto credit/debit card top-up - bank GIRO EZ-Online on-demand mobile phone authorisation - reduces counter queues - 24/7 availability - from cost to cost-recovery convenience fee model Leveraging on non-transit infrastructures - convenience stores, fast food outlets, schools, banks, etc. - proliferating beyond transit nodes - top up card instead of returning loose change for purchases

15 EZ Reload by Card EZ Reload by GIRO Top Top up up transaction transaction sent sent to to host host for for processing processing Top Top up up to to pre-set pre-set amount amount if if e-purse e-purse is is <$0 <$0 Transaction Transaction is is posted posted to to bank bank EZ EZ Reload Reload is is available available at at -Public -Public Transport Transport -New -New IU IU -Retail -Retail & Taxis Taxis Bank Bank credits credits EZL EZL account account

16 Internet Channels EZ-Online for e-commerce and other new service channels Using off-the-shelf contactless readers Internet reload Online merchants Download coupons Transaction history and balance checking Cost effective infrastructure to deliver other card related services (e.g. top up, sales, refund, etc)

17 Mobile Top Up

18 DBS Bank ATMs Objectives Leverage off 950 ATMs deployed island wide by DBS Bank Reduce cash handling by going direct to the source of funds for reload Increase reload points to encourage more retail spend, alignment with strategy to move beyond transit (particularly for ERP/Car Parking Markets)

19 AXS Stations 600 points island wide

20 Banking Co-Brand Products Incremental revenues from top-ups split from top-up fee Everyday use within transit drives co-brand card to top of wallet increasing retail use The convenience factor of all-in-one card

21 Co-Brand User Experience ATM (Domestic and Worldwide) EFTPOS Merchants Low Ticket purchase MRT/ Bus Transit E Commerce Visa Merchants (domestic & worldwide)

22 Value Proposition Consumer Convenience of all-in-one card No need to bear card cost Increase service channels other than transit Auto Top-Up bundled Rebates with each top-up Loyalty points redeemed for free rides Card Issuer Cost of card lifecycle management is shared Proliferation of auto top-up Card is personalized Citibank-SMRT Platinum VISA

23 New EZ Link CEPAS Co-Brand 1 st VISA Credit Card with Pay Wave, EMV and ez-link CEPAS on one chip Launched in end Aug 2009 with DBS

24 Passion EZ Link Co Brand

25 New Generation Card Visit: MasterCard Pre-Paid Card Card Purse Purse Limit Limit of of SGD$1,000 No No age age restrictions Design Design your your own own card card Gift Gift Card, Card, conversion to to re-loadable Transaction history history checking Integration with with EZ EZ Link Link contactless purse purse for for value value add add

26 Accelerating e-payments in Singapore Infocomm Development Authority of Singapore (IDA) awarded Call-for- Collaboration to 5 companies, including EZ-Link in Nov 2009 To catalyse deployment of CEPAS-compliant POS terminals beyond transport sector Increase contactless POS terminals from 5,000 to almost 24,000 across Singapore by 2011 Generate over 94 million e-payment transactions per year

27 Accelerating e-payments in Singapore

28 Thank You