Case study the next generation Oyster Card - Peter Lewis 905kb

Extended use of Oyster• Oyster onNational RailServices• Oyster on ThamesRiver BoatServices3

Over 13 millioncontactlesstaps a day

Fare collection objectives – 2010onwardsTfL aims to:1. Retain operational benefits ofcontactless fare collection –passenger throughput & fraudreduction2. Maintain & improve customerconvenience of contactlesstravel & ease of payment3. Reduce fraud and ticket-lesstravel further, and reduce costs –one of the Mayor‟s priorities5

Oyster: Current State• TfL very happy with what it has achieved withOyster– Customer satisfaction is very high– Business objectives achieved– Faults/deficiencies are small and manageable• No desire to give up Oyster without improving onkey deliverables• Biggest concern going forward is cost of revenuecollection6

Current challenges• Despite the visible success of Oyster, ticketing still represents adifficult business model• Need to think from first principles about models for revenuecollection7

Multiple sales channels• TfL channels– Ticket offices– Self-serve machines– Web• Third party channels– National Rail “joint stations”– Oyster Ticket Stops– Visit London– Visit Britain– Eurostar– Coach operators– WH SmithsCommissions8

How can we lower our revenue collectioncosts?We have reviewed our options for 2010-2020• Considered all „flavours‟ of contactless:– transit-specific– payments– NFC• Considered wider technology trends• Current hypothesis:– Embrace payments industry standards not transit ones– Exploit fast network technologies to get complexity off the cards– Cope with fares policy complexity in TfL-specific back-office• Payment standards = +9

The future of moneyContactless bankcard and mobile payment platforms finally seem tobe appearing on the market10

Work to date – this is not a standingstart!• Initial learnings from BarclaycardOnePulse in 2007• Embarked on formal discussionswith MasterCard and Visa in late2007– EMV education– Concept– Proof of concept demonstrations• Member of Payment Council largecorporate user forum11

TfL’s Future Ticketing Vision• Maximise revenue net of cost of sale• Increase customer self-service– Reduce queues for tickets– Reduce ticket selling costs– Take of advantage of internet technology– Improve customer journey experiences– Eliminate the need to top up or purchase a ticket and then travel• Centralise fare calculation system– Reduce dependency on read/write cycle & complex calculationsat 25,000+ card readers– Easier implementation of fare and product changes12

Delivering the vision• Bank and payment card acceptance as an alternative tocurrent ticketing technology– Acceptance by product type– Introduction of new products – weekly capping?• Migration of Oyster into EMV technology• Eventual elimination of the „currency exchange‟This is evolution, not anotherrevolution13

14A vision of the future

Thankyoupeterlewis@tfl.gov.uk