2009 Fare Collection Workshop VISA + TAP. Jane Matsumoto. LACMTA, Deputy Executive Officer/Program Manager TAP. Matt Newsome

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1 2009 Fare Collection Workshop VISA + TAP Jane Matsumoto LACMTA, Deputy Executive Officer/Program Manager TAP Matt Newsome Cubic, Regional Program Manager

The LA TAP Region Antelope Valley (Aug/Sept 09) (60 buses) Santa Clarita (1) (85 buses) LA DOT (TBD) (300+ buses) LA Metro (3) (3000 buses) Gardena (60 buses) June 09 Torrance (TBD) (70

2 The LA TAP Region Antelope Valley (Aug/Sept 09) (60 buses) Santa Clarita (1) (85 buses) LA DOT (TBD) (300+ buses) LA Metro (3) (3000 buses) Gardena (60 buses) June 09 Torrance (TBD) (70 buses) Culver City (2) (70 buses) Long Beach (TBD) (270+ buses) (installed) Foothill (320+ Buses) May 09 Montebello (85+ buses) July 09 Norwalk (65 Buses) Apr 09 Installed 2 Next install

3 LA Regional System Overview (Hosting Metro and Santa Clarita) 3

4 Where are we now? Nextfare Central system > 1 Billion transactions Total CSC TAPs > 37 million > 130,000 CSC TAP cards in circulation > 250,000 TAP per day > 400 TAP Retail outlets which update over 80% of TAP passes issued >80% of all rides contain 2 to 3 segments Full functioning Regional System with 3 operators TAP Day Pass campaign started TAP service center and website up and running 4

5 What s Next? Fare gates at rail stations Limited Use (LU) smart cards (multiple types) NFC phones for both inspection and validation on rail/bus 7 more LA Municipalities/participants to come soon Visa - TAP bank card program 5

6 VISA integration to the Metro/Cubic Nextfare System Cubic is fully supportive of LA Metro s efforts to introduce Multi Application Bank Cards into the TAP System Cubic is working with Metro and VISA to simplify all integration efforts The LA pilot is different than most the Tap application enables bankcard support while eliminating the need for infrastructure changes. Cubic has entered into a licensing agreement with Vivo Tech that will provide type certification for Tri Reader 2 s and 3 s. Cubic is going to provide an account based processing module as an addition to its back office suite This will provide even more options as Cubic Nextfare Systems will be able to accept and process contactless Bank Cards. 6

7 VISA TAP Pilot A potential business case that benefits the un-banked community that ride public transit in Los Angeles County: $789 is spent yearly by the un-banked to cash check, pay fees for money orders, etc California check cashing charges: 3% with ID for payroll or government checks 12% the face value of a personal check A person cashing two $800 paychecks monthly would spend $576 in fees in 1 year 7

8 VISA TAP Pilot Consumers that do not have a credit card or prepaid card cannot participate in or enjoy products and services the banked takes for granted Pay a bill by phone Shop on line Rent a car or DVD Pay for movie tickets The un-banked consumer lacks security They need to carry large amounts of cash 8

9 VISA TAP Pilot A unique and compelling dual application smart card product has Been developed for LACMTA and Regional TAP participants Instant Ready Visa TAP Card Personalize Visa TAP Card Can be purchased in less than 1 minute from kiosk Activated and ready to use on issuance Anonymous NO ID required $4.95 purchase fee Load limit $10 - $500 Free reloads at kiosks Can be used anywhere Visa is accepted Acquired on line or by phone Personalized name on card No purchase fee Load limit of $9,999 PIN provided, Debit & ATM access Free reload at kiosks Can be used anywhere Visa is accepted 9

10 VISA TAP Pilot Visa TAP cardholders can enjoy benefits of usage without requiring credit approval or credit risks Because it s prepaid, cardholders are never charged overdraft, interest or insufficient funds fees Cardholders are able to spend when they, want and where they want, in both transit and retail Free direct deposit for automatic paycheck deposit Saves hundreds of annual fees Free reloads at kiosks make the Visa TAP card the lowest reload fee card on the market today 10

11 Purpose & Goals of Visa TAP prepaid card Visa TAP pilot to determine if a pre-paid payment card is successful in Los Angeles 1. As a transit payment card and; 2. As a general purpose card in the retail domain In the USA, several transit agencies have launched co-branded debit/credit cards Across the USA, Los Angeles will have the only program focused on BUS riders with pre-paid smart cards 11

12 Basis of the Pilot type of cards Premise: 10% of customers will use the product exclusively for transit 90% will use the product in both transit and retail (general use) Two card types: Anonymous Instant Ready Cards Personalized card With individual name 12

13 Basis of Pilot 40 proven kiosks The ReadySTATION becomes the bank for the self banked Instant/anonymous card issuance Reloads Cash bill pay (optional) Builds higher repeat business Self-service technology English & Spanish Ease of use, no lines Privacy Proven consistent customer experience 13

14 Performance Metrics 12 month pilot 1. Issue 16,800 Anonymous instant cards Verify 4 non-transit usage per month Verify 2 transit usage per month 2. Issue 8,400 Personalized (registered) cards Verify 4 non-transit usage Verify 2 transit usage per month Reload cash once per month Use at ATM once per month 14

15 Post Pilot Revenue Projections to LACMTA Increase the number of kiosks from 40 to 50 machines 15

16 Post Pilot Revenue Projections based on 50 Kiosks 16

17 Thank you! 17

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