Smart Ticketing &Transport Conference,

29-30 September 2014

Paris

The future of ticketing

a transport authority‘s perspective
MSc Dušan Zalar,
Ministry for Infrastructure and Spatial planning,
Republic of Slovenia
 The future of ticketing

• General directions in transport ticketing

• Challenges and opportunities in Slovenia

2
 The future of ticketing

• General directions in transport ticketing

• Challenges and opportunities in Slovenia

3
 General directions in ticketing

• The past

• The present

• The future

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 The past

• Goals
– Reduction of the cost of fare collection (COFC)

• Measures
– Introduction of automated fare collection (AFC)

• Enabling technologies
– Magnetic stripe cards
– Contactless smartcards

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 The past

• AFC benefits
– reduce the cost of fare collection (cash handling costs),
– improve passenger experience (reduce boarding time)
– improve service quality (reduce travel time)
– reduce the operational costs (reduce dwell times) and
– improve planning (detailed ridership data)

• AFC weaknesses
– fragmentation (integration and interoperabilty)

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 The present

• Goals
– Countrywide (national) integration
– Cross-border interoperability

• Measures
– Introduction of national ticketing schemes
– Introduction of interoperable fare management (IFM)

• Enabling technologies
– Contactless multiapplication smart cards

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 The present
• Integration and interoperability benefits
– Improve passenger convenience

• Integration and interoperability weaknesses

– One size fits all
– National regulation
– Cross border enforcement
– Complex application hosting
– Smart card capacity limitations
– Several standards (MiFare, Calypso, CiPurse, FeliCa)
– Regulatory driven business model (incentives based)

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 The future
• Goals
– Global interoperability
– Seamless travel

• Measures
– Integration of ticketing, payment and passenger information
system

• Enabling technologies
– Contacless bank payment cards, mobile phones (GPS, NFC, BLE)
– Account based ticketing, open loop payments

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 The future
• Challenges and opportunities
– Multiapplication card based ticketing
– Account based ticketing
– Open loop ticketing (including long distance)
– NFC mobile wallet (multi card - bank and transport cards)
– Market driven business model (integration, interoperability)
– Simplified NFC business model (PTO, MM, MNO, TSM, Bank, …)
– Ticketing as a service
– Static and dynamic (real time, location based, out door and in
door navigation) passenger information (countrywide,
worldwide)
– One stop ticket office (global ticket reseller)

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 Historical analysis

THE PAST THE PRESENT THE FUTURE

WHAT Reduce cost of National Cross-border Global inter- Seamless

(Goal) fare collection integration interoperabilty operability travel
(COFC)

HOW Card based Card based Card based Open loop NFC mobile
(Measure) (data model) (common data multiapplication (account wallet
model) (multi data based)
model) One stop
ticket office
WHO Public Public Public Ticketing Global ticket
(Business Transport Transport Transport Processor (TP) reseller (GTR)
entity) Operator (PTO) Authority (PTA) Authority (PTA)

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 Directions
Ticketing system
Card based Account based
Closed loop Open loop
Ticketing media
Single Multiple
Dedicated purpose General purpose
Business model
Regulatory Market
driven driven
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 NFC technology
MiFare Calypso CiPurse FeliCa EMV
eSE
SIM
Micro SD
HCE

?
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 The future of ticketing

• General directions in transport ticketing

• Challenges and opportunities in Slovenia

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 Challenges and opportunities
in Slovenia
• Proposed strategy to follow the general trends

– Avoid technology lock

– Avoid supplier lock
– Enable parallel operation (multiple technologies and suppliers)
– Monitor new technologies and business models
– Measure the cost of fare collection (methodology)
– Minimize intervention (funding and regulation)

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 Challenges and opportunities
in Slovenia

• Countrywide single ticket introduction

• Single ticket and student card integration

• Contactless bank payment cards integration

• NFC mobile ticketing integration

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 Countrywide single ticket
introduction
• In 2007 Slovenia launched an Integration of public
transport project. The project is EU funded and is
expected to be completed in 2015

• The main goal of the project is to increase the use of

public transport through
– harmonization of time tables,
– harmonization of fares and
– introduction of single ticket

• Public tender "The introduction of single ticket in

Republic of Slovenia" is closed

• Two bids are submitted, decision would be taken soon

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 Public transport in Slovenia
- Basic facts
• Public transport modes are train,intercity bus and city bus
• Intercity bus and train services have a distance based fare
structure, while urban bus service have a zone based structure
including flat fare (single zone) and zero fare (free service)
• Public transport network is ungated, regardless of transport mode
• Public transport network is operated by some large and almost
fifty small bus operators and one train operator
• All operators in Slovenia have implemented smart ticketing using
card based data model and proprietary data structure
• Smart ticket issued by one operator is accepted only by issuing
operator and chosen transport mode
• Transport ticketing technology is provided by four local suppliers
• MiFare DESFire and MiFare Classic technologies are in use
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 Countrywide single ticket
- Basic requirements
• The same ticketing media must be accepted by all public transport
operators and all modes of public transport - train, intercity bus
and city bus regardless of public transport authority- local or
central
• A simple ticketing scheme should be developed for the single
ticket (common platform, security and data model) which will be
prescribed by central government, all operators should be required
to use it
• MiFare DESFire EV1 contactless smart card as national ticketing
media standard
• Single ticket should support existing data model and new
prescribed common data model (dual data model) for gradually
implementation of all common ticket types regarding the volume
• The majority of tickets are student season tickets
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 Countrywide single ticket
- Implementation
• Phase approach
– establish a common authority responsible to organize the
integrated public transport
– set up an organization for introduction, operation and further
development of a single transport ticket
– set up a system for authorization, clearing and settlement of a
single transport ticket
– upgrade or replace existing ticketing systems
– implement pilot projects
– start-up countrywide operaton of single public transport ticket

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 Single ticket and student card
integration
• All universities in Slovenia have began issuing a unified
student card for the school year 2013/2014
• Student card enables visual and electronic
– identification of the cardholder and
– verification of the student status of the cardholder
• Identification and verification can be done off-line,
personal data and data about the study are recorded on
the card
• Student card is a multi-application card based on
MiFare DESFire technology, universities are willing for
hosting other applications including public transport

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 Single ticket and student card
- Basic facts and requirements
• Personal data and data about the study recorded on the
card enable the verification of eligibility of the subsidy
- Student status
- Temporary or permanent residence (address)
- School organization (address)

• Technology options
- Multi-application card based ticketing
- Account based ticketing

• Student card should be a secondary ticketing media

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 Contactless bank payment cards
integration
• Slovenia has prepared preliminary analysis about the
possibility of using bank cards in transport ticketing
within the Framework for electronic single ticketing
standard as a part of Integration of public transport
project in 2010
– None of the banks are issuing contactless payment cards (Banka
Koper has demonstrated a pilot project with MasterCard
PayPass technology in 2009)
– Transport ticketing is not enough attractive for banks to go
contactless
– Transport authorities and transport operators have doubts
about technical feasibility and financial viability using
contactless bank payment cards for fare payment
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 Contactless bank payment cards
- Basic facts and requirements
• It is not clear that the operating cost of open loop payment
transport ticketing (3%-6%) is lower than traditional card based
transport ticketing (10%-15%)
• 2000 point of sale (POS) terminals at major retailers (Spar, Tuš)
were upgraded with contactless option in 2013
• The largest Slovenian bank (NLB) has announced that it will begin
to issue contactless payment cards at the end of the 2014

• Contactless bank card should be a secondary ticketing media

• Open loop ticketing should operate in parallel with existing
ticketing systems
• Simple ticket type – single ride flat fare ticket (check-in only)
should be implemented in urban areas

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 NFC mobile ticketing integration
• NFC-enabled mobile phones are just coming to
Slovenian market
• At the beginning of 2014 city bus operator in capital
Ljubljana has launched NFC mobile ticketing (emulating
the stored value ticket)
• Google Transit is already used as a passenger
information portal (journey planner) by city bus
operator in capital Ljubljana and train operator
• It is planned that Google Transit will be used by all
operators this year (pilot operation)

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 NFC mobile ticketing
- Basic facts and requirements
• NFC mobile phone should be a secondary ticketing
media
• Ticket renewal and top-up through NFC mobile phone
• Single mobile application for all operators
• Passenger information (Google Transit) integration
• One stop ticket office

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 NFC mobile ticketing
- improving passenger experience
TECHNOLOGY OPTION smart card ticketing nfc mobile ticketing
JOURNEY PHASE (single ticket) (smart card emulation)
search for journey --- transport network and
information time tables integration
plan the journey --- journey planner
integration
purchase the ticket (single ticket) purchase ticket over the
mobile network
wait for transport service --- real time passenger
information integration
enter into transport (single) ticket validation ticket validation
vehicle at the origin (check-in) (check-in)
travel from origin to --- real time passenger
destination information integration
exit from transport (single) ticket validation ticket validation
vehicle at the destination (check-out) (check-out)
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 More Information

MSc Dušan Zalar,

Ministry for Infrastructure and Spatial Planning,
Republic of Slovenia

http://si.linkedin.com/in/dusanzalar

email dusan.zalar@gov.si
dusan.zalar@gmail.com
dusan.zalar@siol.net

phone +386 1 478 8103

gsm +386 31 336 987