Resource addresses pay-as-you-go scenarios with mobile devices and wearables
PRINCETON JUNCTION, N.J., Oct. 10, 2018 — Many transit agencies today are considering contactless open payments with mobile devices and wearables and have questions about implementation in the transit environment. The U.S. Payments Forum has released today a new resource to explore these questions and identify and provide guidance for technical solutions that could be used to successfully implement EMV contactless open payments in transit.
The resource introduces the second use case in its series addressing pay-as-you-go/single-ride fares1 scenarios using mobile devices, and includes the technical framework needed to make contactless open payments in this scenario a reality. The white paper, “Transit Contactless Open Payments: Technical Solution for Pay As You Go,” can be downloaded at http://www.uspaymentsforum.org/transit-contactless-open-payments-technical-solution-for-pay-as-you-go/.
“The transit industry today is working to improve the user experience and reduce barriers between transportation systems by transitioning to an open fare payment system. To do this, security, transaction speed and integration need to be addressed,” said Randy Vanderhoof, director of the U.S. Payments Forum. “The objective of this resource series is to help the transit and payments industries understand and identify the technical requirements and approach for open payments and contactless EMV chip cards to be a viable option to supplant or supplement transit closed-loop systems.”
The newly added Use Case 2 – Pay As You Go/Mobile Device describes contactless payments made by NFC-enabled devices using open loop payment accounts, and provides:
- Background on the transit environment, including features that are unique to a transit retail environment
- A description of Use Case 1 – Pay As You Go/Card
- Transit merchant, acquirer/processor and issuer requirements and considerations for both use cases
- A technical functional proposal following the three pillars of a secure EMV transaction: card authentication, cardholder verification and financial authorization
The next use case in the series will focus on aggregated pay-as-you-go transactions, with additional topics to be announced.
The resource series is being developed by the Transit Contactless Open Payments Working Committee, whose goal is for interested stakeholders to work to identify possible solutions that address the challenges associated with the implementation of contactless acceptance terminals at gated customer points of entry within the unique retail environment of the U.S. and Canadian public transit market. For more information about the Transit Contactless Open Payments Working Committee, visit http://www.uspaymentsforum.org/working-committees-sigs/transit-contactless-open-payments-working-committee/.
Pre-Meeting Transit Payments Workshop
Those interested in further exploring transit payments are encouraged to attend the Transit Payments Workshop being held by the Secure Technology Alliance Transportation Council and U.S. Payments Forum Transit Contactless Open Payments Working Committee on November 5, 2018, the day before the November all-member meeting.
This in-depth educational workshop will cover the Technical Framework for Transit Open Payments developed by the Forum’s Transit Contactless Open Payments Working Committee, transit agency perspectives on future acceptance technologies, and the latest developments in mobile ticketing and multimodal payments convergence.
This full-day workshop is open to Forum and Alliance members, and non-member financial institutions and transit agencies. Those interested in attending the workshop can register here http://www.cvent.com/events/u-s-payments-forum-meeting-oak-brook-nov-18/custom-21-7e2aeace98114a0c8acba99beb3e327e.aspx.
About the U.S. Payments Forum
The U.S. Payments Forum is a cross-industry body focused on supporting the introduction and implementation of new and emerging technologies that protect the security of, and enhance opportunities for payment transactions within the U.S. The Forum is the only non-profit organization whose membership includes the whole payments ecosystem, ensuring that all stakeholders have the opportunity to coordinate, cooperate on, and have a voice in the future of the U.S. payments industry.
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1 A single ride fare purchased with a contactless card or other form factor issued by a financial institution by “tapping” at the transit point of entry. The single ride fare may be fixed or variable.