T3 Webinar Presentation

Your Smart Phone is Getting Smarter: Leveraging Open Fare Payment Systems and Mobile Devices (June 29, 2011)

Open Payment Systems in Public Transit

Presenter:   Burt A. Wilhelm, Vice President, Integrated Solutions – US Emerging Payments
Presenter's Org:   MasterCard Worldwide

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T3 Webinars are brought to you by the ITS Professional Capacity Building (PCB) Program at the U.S. Department of Transportation's ITS Joint Program Office (JPO), Research and Innovative Technology Administration (RITA).

The slides in this presentation are branded in the upper right corner with the MasterCard Worldwide logo and many also contain the following text at the bottom: MasterCard Proprietary Information / MasterCard © 2011.

Slide 1:  Open Payment Systems in Public Transit

Burt A. Wilhelm, Vice President
Integrated Solutions – US Emerging Payments
June 29, 2011

Slide 2:  Payment Card Products

Contactless – Similar to a standard payment card with some differences...

Sample MasterCard® PayPass™ card, other branded products may be similar

[This slide contains two images: the front and back views of a MasterCard contactless payment card, which highlights the differences between it and a MasterCard credit card. The front view identifies the PayPass™ Radial Mark and the PayPass™ Identifier. The back view points out the Embedded Chip, the Shortened Signature Panel, and the Embedded Antenna.]

Slide 3:  Payment Card Products

The Financial Industry is migrating to contactless... in many forms

Sample MasterCard® PayPass™ enabled products, other branded products may be similar

[This slide contains five images of MasterCard PayPass enabled/branded products: a smart phone, a keychain card with a fob, a contactless payment card, a mobile phone with a contactless payment sticker, and a watch.]

Slide 4:  Contactless Bankcards Used In Transit

Lots of ways to say it...

[This slide contains a photograph of a closeup of the face of a very happy person with a big smile.]

Slide 5:  Open Payments (continued)

So what does MasterCard® mean “Open Payments?”

Open Standard*:

Global Open Payments System:

*Source: Wikipedia: http://en.wikipedia.org/wiki/Open_standard

Slide 6:  Traditional Transit Payment System

Transaction Process Flow*

* Illustration denotes traditional AFC system and is only one (1) of several potential payment processing schemes

[This slide contains a flow chart of the Transaction Process, which contains two sections: a Closed-Loop System and an Open-Loop System. The Closed-Loop System shows the Cardholder connected to the Merchant, which is connected to Fare Media, which is connected back to the Cardholder. The Open-Loop System shows the Acquirer connected to MasterCard, which is connected to numerous Issuers. The Closed-Loop System is connected to the Open-Loop System from the Merchant to and from the Acquirer.]

Slide 7:  Open Payments (continued)

How do “Open Payments” in transit differ from Proprietary “Closed Loop” Payments

[This slide contains three images. The first image is a photograph of a woman conducting a transaction at a customer service window, labeled 'Separate Fare Purchase/Reload'. This image has a large "Not Required" banner across it. The second image is a photograph of a contactless payment card being swiped across a PayPass detector at a transit turnstyle. It's labeled 'Access to Transit Services.' The second image has an arrow connecting it to the third image, which is a photograph of a handful of passengers inside a subway car. It's labeled 'Use of Transit Services.' ]

Slide 8:  Open Payments Solution

MasterCard Transit Risk Management Processing Flows

[This slide contains a diagram of the Processing flows. A Cardholder taps a card on the Reader. The Reader checks card information against a Local Deny List (Reader makes access control decision if 'offline.' The Reader is connected to the Third-party managed Automated Fare Collection (AFC), which is contained within the Vendor Transit Platform and manages Transit Accounts and Fare Policies. The AFC is connected to to the Acquirer for Clearing and Settling. The AFC also connects to the Transit Risk Management Processing Solution, which contains an Active Card Account List (including a Hot Card List). The Transit Risk Management Processing Solution connects to MasterCard, which routes the authorization to the Issuer on behalf of the Acquirer.]

Slide 9:  Open Payments (continued)

Benefits of Open Payments in Transit

Slide 10:  Open Payments (continued)

Slide 11:  Open Payments (continued)

[This slide contains a graphic of six images. A center circle has lines connecting out to five rectangular boxes. The circle is labeled 'Subways,' and has a photograph of a subway car in it. The boxes each contain a label and a photograph of an example: 'Buses', 'Commuter Rail,' 'Toll Roads,' 'Taxi Cabs,' and 'Ferries'.]

Slide 12:  Open Payments (continued)

Open Standards and Business Rules

Open Standards and Business Rules
Used together could yield the desired solution

Slide 13:  Contact Information

Burt A. Wilhelm
Vice President
MasterCard Worldwide
Integrated Payments Solutions
US Emerging Payments

E-Mail: Burt_Wilhelm@mastercard.com
Office: 914-249-3218

Slide 14: 

[This slide contains a large MasterCard Worldwide logo and the phrase The Heart of Commerce™.]

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