Page 128 - Pay Magazine s2014

vertical opportunities
snapshot: prepaid transit Cards
transit systems at a glance
Bangkok
Bangkok’s Rabbit Card is a contactless reloadable smart card that can be used for transit payments and at 1,500 retail outlets. Launched in 2012, more than 1.5 million Rabbit Cards are in circulation. While the card’s origin is transit, it enables unbanked individuals to load value onto a card and use it for other pur- chases. Rabbit Card users also benefit from the Carrot Rewards program; cardholders earn Carrot Points every time they top up or use the cards at select merchants. The points can be re- deemed for products and gift cards.
chicago
The Chicago Transit Authority, working with First Data, Cubic and MasterCard, last year began rolling out the contactless Ventra payment system, featuring a closed-loop account for train and bus payments and an optional reloadable prepaid account usable where debit MasterCard is accepted. The pro- gram later rolled out open-loop debit and credit card accep- tance at turnstiles. CTA is one of the largest transit agencies in the U.S. with 500+ million rides per year, according to the CTA.
Between September 2013 and May 2014, there were more than 206.3 million Ventra “taps.” As of May 31, 2014, there were approximately 1.9 million active Ventra accounts, a 10.4 percent increase from the beginning of the month. The CTA expects to save more than $50 million over 12 years.
seattle
ORCA, One Regional Card for All, is the fare collection system rolled out in 2009 for buses, light rail, commuter rail, ferries and streetcars. ORCA covers seven transit agencies across more than 2,000 square miles of Central Puget Sound, includ- ing Seattle. The system replaced nearly all passes, tickets and transfers to simplify the system for riders and reduce the cost and complexity of fare collection for the agencies. With 200 million passenger trips a year and more than 60 percent of riders using the ORCA card, it’s one of the largest integrated systems in the country.
source: Vix Technology Case Study, National Transportation Database, King County Metro Transit Division and the Chicago Transit Authority
a trailblazer’s timeline
Octopus, a reloadable contactless smart card system in Hong Kong, was one of the world’s first prepaid cards developed for transit. The Octopus card was launched in 1997 and nearly 3 million cards were sold in the first three months.
1999 Retailers support Octopus reload services, and financial institutions offer automatic top ups from credit cards.
2000 Non-transit businesses— including convenience stores, fast food restaurants, vending machines and car parks—accept Octopus cards.
2004 Hong Kong parking meters accept Octopus.
2008 The Octopus Citibank credit card is launched and hailed as the first card with credit card and Octopus payment functions.
2012 The OctoCheck mobile application is launched, enabling NFC smartphone users to check Octopus balances and make certain merchant payments.
2013 The Octopus Mobile Payment Service is launched, enabling Octopus users to tap their NFC-enabled smartphones on the Octopus readers.
source: Octopus Holdings Ltd.
prepaid transit cards adopted globally
• Brazil
• China •Denmark • Dubai
• Finland
• France • India •Ireland • Italy
• Japan
• Kenya
• Mexico •TheNetherlands • Norway
• Poland
• Romania
• Singapore •SouthKorea • Sweden
• Thailand
• Turkey
• United Arab Emirates
• United Kingdom • United States
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