Author: Ana Stanca
Demand Generation Leader, Enghouse Transportation
Contactless payment is already transforming how people travel. As across the world city-wide transit systems look to become more integrated, contactless payment is becoming increasingly common. Facilitating this change is EMV technology.
Making the shift can deliver tangible benefits and these are becoming more widely understood. What holds many transit agencies back, particularly in North America, is a belief that the process is complex, requiring significant investment in time and resources.
To make the right long-term decision for your transit agency it’s important to understand both the challenges and potential benefits that making the transition could deliver.
What is EMV?
EMV allows a global technology toolbox that supports secure payment interoperability across face-to-face and remote environments, using a chip to store and process data. EMV stands for Europay, Mastercard, and Visa and was developed in the 1990s in Europe because card authorization was proving to be prohibitively expensive for European card issuers.
The global stand is now managed by a global technical body called EMVCo which facilitates worldwide interoperability and acceptance of securing payment transactions. It enables this through the management of EMV specifications and related testing processes.
In transit systems, EMV enables a single-step process, facilitating fast payments and spontaneous travel. Open-Loop EMV Payment Systems enable riders to use their existing cards to pay for travel in the same way they would purchase goods in-store. Closed-Loop EMV Payment Systems restrict payments to a single card requiring prepayment. This system will often be used in connection with city-wide travel cards.
What are the benefits of EMV?
A growing number of organizations around the world are using EMV to develop secure and seamless card-based payment options. They deliver a range of tangible benefits for both transit agencies and riders:
EMV technology has robust security features built in, reducing the risk of fraud and misuse. Riders are able to track transactions online.
EMV systems are highly convenient for riders, helping to support spontaneous travel and providing a seamless user experience. They speed up the embarking process, reducing the need for cash or different cards for different locations.
Open standard technology gives transit agencies greater flexibility. It enables transport agencies to reduce maintenance costs, saving time and resources by replacing legacy infrastructure.
Consumer expectations are changing with contactless payment now the norm across much of retail and other sectors. A 2021 survey by Visa discovered that 88% of travelers expect their public transit systems to offer contactless payment systems.
Best-value fares, fare caps and discounts can be set up in the system to automatically bring value to low-income riders and other groups.
What are the challenges of implementing an EMV system?
While the benefits of implementing EMV are well-established many transit agencies anticipate a range of challenges to successful deployment. These can include:
Many transit agencies are concerned about the length of time it could take to develop and get the system up and running. It’s feared that delays and disruptions could be frustrating for passengers, with a subsequent drop-off in rider numbers.
If an agency has a functional legacy system, they may be hesitant about investing in an EMV system. Concerns about cost are a key consideration, with particular hesitancy about the challenge of integrating EMV technology with existing transit systems.
Any change in payment methods can be confusing for existing customers. Different groups may have different reactions to new payment systems, with some willingly embracing the chance and others being more resistant. Agencies will need to communicate and educate their customers about the change.
Ensuring that payment systems are secure is paramount for transit agencies. Security breaches can be costly, as well as disastrous for the reputation of the transit provider. Robust security measures need to be deployed to protect sensitive data and to maintain compliance with industry standards.
Meeting the Challenge & Reaping the Benefits
Our Automated Fare Collection solution enables EMV contactless bank card validation. It delivers a range of benefits for your riders, supporting flexible and spontaneous travel. Its benefits for riders include:
Our AFC system is developed by applying open architecture principles. The advantage of this is that the functions are defined as building blocks and unrelated information is kept independent.
Our team of experts are highly experienced at implementing AFC systems in different cities and regions across North America and beyond. We can address any concerns you have and ensure that the process is as swift and cost-effective as possible.
Contact us to find out more and request a demo.
