Electronic Payment Scheme for Transportation: A case study of LAMATA By Dr. Dayo Mobereola Managing Director, Lagos Metropolitan Area Transport Authority (LAMATA) June, 2014 1
Presentation Outline Introduction The Paper Ticketing System The E-Ticketing System Benefits of epayment in Transportation Moving Forward 2
Introduction Vision: To be a foremost facilitator of a sustainable and effective integrated transport system LAMATA Launched: Bus Rapid Transit (BRT) in 2008 Bus Franchise Scheme (BFS) in 2009 Electronic Ticketing System in 2013 3
Bus Rapid Transit (BRT) BRT Lite: Mile 12- TBS 22 Km Corridor 65% Segregated Lane 3 Terminals 29 Bus Stops 1 Depot 4
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Bus Franchise Scheme (BFS) Ikotun Igando Iyana-Ipaja Maryland - Ikeja 8 routes 5 Terminals 1 Depot 6
The need for a Ticketing System 7
Process Paper Ticketing System 2 stub, Color differentiated Zonal Tickets Ticket Dealing Companies Purchase directly from bank 6% Commission to Ticket Dealers 1.5% Commission to Ticket Sellers Daily Bus Shelter rotations 1 stub of ticket collected by Bus Pilot, 2 nd stub retained by commuter 8
Paper Ticketing System Challenges Ticket Recycling Fraud Fake Tickets Littering of used Tickets Overriding of passengers Adequate data collection Ticket Seller in Operation at a Bus Shelter 9
Solution to Challenges Introduction of an Electronic Ticketing System 10
E-ticketing System Stakeholders LAMATA Regulation Operations BUS OPERATORS SYSTEM PROVIDER Technical Support System Operation Revenue Reconciliation & Settlement SWITCHING COMPANY TICKET DEALERS Virtual Ticket Sales FINANCING BANK Revenue Collection 11
Identification of User Needs Implementation Process Development of System Requirements Appointment of System Provider Publicity Outreach and Awareness System Pilot Test Using Commuters as testers Adjustment to System Full Implementation 12
System Components 13
System Smart Card: A store-value-based contactless smart card application Lagos Connect Cards 14
Bus Validator: Location: Front and Rear of Bus Commuters Tap-in and Tap- Out GPS Locators to Identify bus stops and ensure accurate fare is deducted 15
Reloading Terminal Fixed: Used by Financing Banks to top-up Ticket Dealers Handheld: Used by Ticket Sellers at the shelters to top-up commuters 16
System Backend: All transactions recorded Stakeholders access Generates Reports Date specific 17
Reconciliation Settlement Revenue Shared amongst: Operators System Provider Switching Company 18
Expected Benefits Increased commuter ridership, Improved data management, Improved visibility in the operations and revenue collection, Better interchange opportunities for commuters Reduced fraud. 19
e-ticketing System Challenges Reduction in the operators revenue due to the slow increase in ridership and significantly lower fare Vandalism of the system components such as the bus validators Poor acceptance by the operators due to their loss in revenue Technical errors and obscurity Poor understanding of how to operate system equipment 20
Implemented Solutions Fare Re-structuring More Publicity Enlightenment Sensitization of Operators Training of ticket sellers Upgrade of system components Increase in Ticket Dealers commission 21
Lessons Learnt Need for adequate recurring training Need for adequate stress testing Importance of Identification of user needs to ensure an effective epayment scheme Importance of Publicity Outreach and Public enlightenment 22
Benefits of epayment in Transportation Transparency in Transactions Reduction in Number of transactions Integration of Trips Ease of Transfer Ease of Introduction of fare transfer discounts Lower cost Sustainable and Environmentally friendly Effective data collection and storage 23
Moving Forward with E-payment A fully integrated Multi-Modal Public Transportation Network with the capability to use 24 1 form of payment epayment System
Moving Forward Closed Loop System Vs Open Loop System An Integrated e-payment Scheme across all sectors (commercial, banking, transportation etc.) Mobile Top-up 25
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