Tên thành viên:

Lê Bảo Minh Châu

Phạm Bích Thạch

Nguyễn Quốc Kim Ngân

Trần Mỹ Tâm

Trương Đoàn Minh Thư

Phan Thị Bảo Ngọc

Questions for the Case:

1/How can credit cards be processed as quickly as stored-value cards at the ticket gate?

Credit cards, are not cost-effective enough to be used for the micropayment of
transportation as its service fee is high. In Stored-value cards Funds are loaded into a debit
account from which the money value of purchases is deducted when purchases are made.
Large cities in Asia such as Seoul, Hong Kong, and Singapore have adopted similar types of
stored-value transportation cards. As such, credit cards and stored-value cards coexist as two
major card services. The two types of cards issuers compete to expand their application
territory. The transportation card company wants to extend the card's application so users can
pay for parking fees, various toll fees, and at restaurants and stores. However, the users have
to load the cards for prepayment. For credit cards issuers to expand their application to
include payments for transportation, they need to simplify the authorization process and
reduce the service fee for the participating transporters.In order to pay transportation fares
quickly, credit card payments for subways and buses must be processed without the full
authorization procedure. This risk is tolerable because the frequency and amount of
micropayment abuse is low in Korea. Therefore, the transportation ticket gate merely
automatically checks whether the card is valid and not on a blacklist. The gate displays not
only the fare, but also the charges incurred during the current month.

2. What is the major benefit of owning a credit-based transportation card for

commuters?

The credit-based transportation card has revolutionized the recharge service process. In
the early stage, both MRT cards and bus cards had to be recharged at manned booths. To
reduce the expense of the recharge service, unmanned booths were installed at MRT stations.
This will reduce the need of labour and cost incurred for it. The major benefits are that with
the credit - card recharge booths can be eliminated altogether and users do not have to spend
time recharging their cards. Commuter's expenses get eventually reduced as well as time is
saved and they also don't need to carry all the cards for different mode of
transportation.Therefore, both the users and the city transportation authority benefit. Another
benefit of the smart transportation card is that it can restructure the city's transportation
system by aligning and coordinating the routes of subways and buses. In the past, bus routes
were designed in consideration of the departure and destination points of citizens' trips. This
approach intended to make it convenient for citizens to take only one bus to reach their
destination.

3. What is the major benefit of credit-based transportation cards to the city

government?

The major benefits are that with the credit - card recharge booths can be eliminated
altogether and users do not have to spend time recharging their cards.Time is saved, use
resource is reduced. Therefore, both the users and the city transportation authority benefit.
The smart transportation card can restructure the city's transportation system by aligning and
coordinating the routes of subways and buses. Due to the national standardization and
integration effort, nationwide transportation cards are now unified using smart cards. The city
also can collect data about commuters so that additional buses can be dispatched depending
upon the passenger load by route and time. This has made the work easy and convenient for
the city government to plan according to the data and requirement.

4. How can the Metropolitan Unified Fare System enable the restructuring of public
transportation infrastructure?

The Metropolitan Unified Fare System enable the restructuring transportation

infrastructure by making use of smart cards. A credit save allows one to pay for both MRT
and buses, not only in Seoul, but alsd major Korean cities without having to recharge the card.
The accumulated monthly charges are automatically paid by the bank. The Smart
Transportation Card can restructure the city's transportation system by aligning and
coordinating the routes of subways and buses. Previously In the past, bus routes were
designed in consideration of the departure and destination points of citizens. This approach
intended to make it convenient for citizens to take only one bus to reach their destination.
However, too many buses created bottlenecks in busy streets, causing traffic jams. In order to
avoid such congestion, the MRT and main bus companies planned to design the transportation
system so that bus branch routes are connected to the subway and to the main bus routes. To
solve this problem, the transportation card, credit or stored-value, is designed to memorize the
departure time from the MRT station so that the connecting buses do not charge passengers
again if the elapsed time is less than 30 min. Taking a branch bus will be regarded as a
transfer for single trip. The national standardization and integration effort, nationwide
transportation cards are now unified using smart cards. The city also can collect data about
commuters so that additional buses can be dispatched depending upon the passenger load by
route and time. Accordingly, Midnight services can also be provided with the help of control
center analysis. This has helped alot in restructuring the process of public transportation and
make it ease for the commuters.