Future Ticketing Strategy for Public Transport - NFC Research Lab

What is Transport for London?Transport for London (TfL) is the integratedbody responsible for the capital's transport systemIts role is to implement the Mayor's TransportStrategy for London and manage the transportservices across the capital for which the Mayorhas responsibility

What does TfL cover?• London's buses• London Underground• Docklands Light Railway (DLR)• Croydon Tramlink• River Services• Victoria Coach Station• London's Transport Museum.• 580km network of main roads• London's 4,600 traffic lights• Taxis and the private hire trade.• Walking• Cycling

Travel in London• London’s buses carry around 6 million passenger trips a day• Over 3 million passenger trips on the Underground each day• 70% of National Rail journeys begin or end in London• Docklands Light Railway carries in excess of 155,000 passengertrips a day• 11 million car/motorcycle trips per day• 9.5 million walking or cycling trips per day

Recent Successes• Progress on LondonUnderground & Bus– Tube & Bus demand now growingsteadily– 45% increase on Bus• Congestion chargingsuccessfully implemented– Reduced traffic delays in centralLondon by 30% in first year (2003)– West London Extension (2007) andreduced delays by over 20%• Oyster card successfullyimplemented from 2003– Complex IT project– More than 17 million already issued -now largest contactless smartcard inEurope

The initial scope of PrestigeASSETS• Ticket Machines• Gates / Validators• Portable Validators• Revenue Accounting Systems• Communication Networks• Back Office SystemsNETWORK• 8,000 buses• 273 stations• 2,300 retail outlets (newsagents)• 16,000 Smartcard readersCUSTOMER BASE• 8.5 million journeys a daySERVICES• Fares & Revenue Collection System• Smartcard procurement (Oyster)• Maintenance & Asset Management• Call Centres• Retail Network management

Season Tickets – Customer Proposition• Annual, Monthly, Weekly on Retail smartcards• Three Tickets possible (Bus, Rail, Both, allows Early Renewal)• Oyster Registration is mandated for Annual, Monthly andrecommended to allow refunds for Lost / Stolen cards• Discounted Tickets (Student, Child) mandated on Oyster Photocard– Personalised• Freedom Pass (Elderly & Disabled) - Free to user – some traveltime restrictions (need to travel after morning Peak)• Gates/Validators check Zonal validity of Season Tickets to allowentry / exit. Checks if correct Zonal range valid for Rail Journey• Benefits of hot listing, higher gate thoughput, new saleschannels

Pay as You Go - Proposition• Can put £90 PAYG Value on Oyster• Check in only on Bus, Croydon Tram (flat fare structure)• Check in – Check out on Tube, Docklands Light Railway– Do not have flat fare on Rail so make an Entry charge (unknown ExitZone),– Determine Journey Fare on Exit – give back PAYG value• Fare calculation features– Day of Week, Time of day journey fares (Peak, Off Peak)– Daily Capping (Bus, Rail, Both)– Traffic Days travel (0430 – 0429)• £3 Deposit if card issued with PAYG – limit card wastage• Customer benefits from not queuing for ticket purchases and removesthem needing to know their travel plans for that day• We offer a Best Value guarantee for PAYG travel

Oyster Card Logical ContentInitialisation InformationCard Number, Check Digits,Card Type, MediaPersonal InformationPhotocard ID, PassengerType, DiscountEntitlementsTravel Capabilities.Not usedIssue InformationIssue Location & DepositPeriod TicketsValidity, Type &Expiry Details of up tothree ticketsPrepayPrepay balance andlast two adds withlocationDisablement Information,Card, , Prepay orTicket Functionswith Date & Time ofDisablement ActionUsage HistoryCurrent or lastjourney, Lastvalidation rejection,Last incompletejourneyRecent Journeylegs (Entry-Exit)– typically lasteightRunning Totals forCapping

Innovative ways to update Oyster• Off System Sales – Telesales & Internet Web orders• Oyster card is mailed to Registered Address• Ad-hoc Top up of Period Ticket & PAYG value• Nominate Station to pick up at Gate / Validator• Order by 2300 collect from 0600 next morning• Auto Top up of PAYG on Tube and Bus. Add £20 or £40 whenvalue goes below £5• More Self Service machines at Ticket Offices

Latest Oyster Information• Over 17 million cards have been used• Over 5.5 million cards used each month but not same cards• Extra 300 / 400,000 month - Mainly new PAYG users• Over 73% journeys on Oyster on Tube and Bus• Different usage profiles on Weekday versus Saturday andSunday - Business - Education - Leisure – Tourism - Through• Still take cash on most bus routes• Expanding retail network to 4000 using small EPoS terminals• Still have queues for new users on Oyster & Magnetic customersnear National Rail stations• Expect in 2009 that Train Operators will support PAYG travel• Expect in 2010 that first Train Operator will issue ITSO cards

Oyster Web•Ad-hoc Top up•Auto Load•Fast Top upPRESTIGESystem Health Checks•Fares Revision•Best Value•Application Changes•Refund CalculationsTelesales•Card FulfilmentBehaviourAnalysisPaymentEnquiriesFraudManagementOysterHelp DeskCard UsageExplanationCard UsageStatementCustomer Support•Campaigns•Service Emails•MarketingTicket SalesAnomaliesCustomer CharterClaimsIncomplete JourneyAnalysisHotlistCapabilityLost & StolenClaimsRefundClaimsIllogical Card Usage

Barclays Oyster Card Partnership• Commuters are in a hurry and likely to value fast contact lesspayments for low value retail purchases• It had already been established that Oyster PAYG purse oncurrent MiFare data card was not suitable for use in the generalRetail market• UK Banks wanted to introduce low value EMV contact lesspayments and decided London would be the ideal for the firstimplementation location as people experienced in using Oyster• We agreed to License Oyster as a co-resident application• TfL delivers on improved customer journey experience• Foundation for deeper understanding of payments contact lessstandards for future transit aspirations• Innovative Barclays product that differentiates them from retailbank competitors

Barclays Oyster Card project• Deal signed in December 2006• Single card for– Oyster– Chip and Pin– Contact less (Visa Wave)• Two purses– Credit (Chip & PIN and Contactless)– Oyster• Oyster functionality same asblue Oyster card• Allows Items below 10 pounds tobe paid for by just tapping• Launched Sept 2007

Future Ticketing StrategyFares & TicketingTransport for London

TfL’s Strategic Goals & Delivery ObjectivesStrategic Goals:Support economicdevelopmentTackle climatechange and enhancethe environmentImprove socialinclusionDelivery Objectives:By effectively investing in andmanaging the operation of thetransport system to provide thebest possible services everyday and support economicgrowthBy reducing carbon dioxide(CO 2) emissions, improvingair quality, reducing noiseand enhancing the urbanenvironmentBy improving the ability forall to access London’sopportunities and servicesImprove door todoor journey times& reliabilityCustomer care,Information &engagementReduce CO 2emissionsSafety & securityDeliver value formoneyMode shiftSustainable growth& regenerationAccessible, affordable& inclusive linksLocal environment& urban realmEfficient & reliablefreight & services

Fares & Ticketing Strategy• Support Mayor of London initiatives after May2008 election• Reduce Revenue Services costs• Improve customer journey experiences

Future Ticketing Project (1)• Examining how to use EMV contactless cards forTransit purposes• Working with Master Card and Visa to understandhow UK Bank issued contactless cards could be usedfrom 2010• Developing a new multi card reader specification• Reduces number of new Oyster cards for the Leisure– Tourism – Through users• Pay via their Credit or Debit Card account

Future Ticketing Project (2)• Will provide Best Value by a centralised PAYGFare calculation system rather than complexcalculations at 20,000 card readers• Will reduce queues for tickets• Will allow easier implementation of fare andproduct changes• Must maintain gate throughput & busboarding rate• Extend to other users via on-line Travel Plan

Where does NFC fit in (1)• Gaining familiarity with NFC & Mobile communications• Joined NFC Forum and met with GSMA, Mobey Forum, Suppliers• Visa and Mastercard are key members of NFC Forum• Partnership needed with MNOs as well as Banks• Customer trials with Mobile Operators and Other Business Areas• O2 Wallet Trial with 500 Nokia Handsets (Nov 2007) – 6 months– Barclaycard, Visa Europe, Nokia, AEG, Transys, TfL– UK’s first large-scale NFC trial– Buy Goods from retail merchants, coffee shops – credit card– Use the Oyster card as normal– O2 Event Tickets – O2 Dome access to special facilities(blueroom)– O2 Tags to obtain information– AEG to upload tickets for theatres

O2 Wallet Trial Phase 1 findings (Oyster)• Customers like Oyster on Mobile• Some initial presentation difficulties to cardreader on Tube compared to Oyster card• Feel much less likely to leave Mobile at homethan Oyster card (Monday morning rush)• Prevents multiple card in pocket collisions• Want to display their Oyster information• Gate and Bus throughputs are maintained• Some concerned about Security at night

TfL Other NFC Trial• TfL pilot underway using NFC tags forproviding passenger service information – DTIfunded – Visualization of Real-time TransportInterchange information (VORTIX)– Blackfriars Station – Tags on Poster onCorridors – Directions / Local Info– Provide real time service information

Where does NFC fit in (2)• Customers would like to display their Tickets, PAYGvalue and Journey Details• Want to allow purchase of Tickets and Top-up ofStored Value OTA• Should we do this now or wait for the SIM and theTrusted Service Manager standards and services tobe established• Should we do this with Mifare Data Card or EMVContactless applets• Want to improve customer experience with TfL

Where does NFC fit in (3)• TfL need to have new generation of portablereaders for multiple card schemes (Oyster,ITSO, EMV)– Revenue Control inspectors (Tube, Bus, Rail)– Gateline management (Tube, Rail)– Check Entry validation / Ticket on card– Obtain card scheme changes / keys OTA– Transmit results OTA to their Bases

What is Strategic outlook• Mobile communications can be used on alltypes of TfL travel options• No need to go to a fixed location to get accessto information & travel products• Skills are not in classical InformationTechnology groups• Partnerships are needed more than previously• Transformation of support services ispossible

Questions?•