Revenue Collection Paradigm Shift Open Payments Revenue Collection Paradigm Shift Carl Commons APTA Fare Collection March 19, 2013

Traditional Fare Collection Payments in Advance of Riding At the Door At a Vending Machine With Tokens With a Pre-Paid Pass Closed Loop Cards Mobile Tickets

Open Payments Open Payments Changes That At the Door or Gate – Authorization Time Distance Based Fares – After the Trip Best Fare Guarantees – End of Day Aggregation of Fares – End of Day

Open Payments What is the cost of waiting? Risk that authorization will fail “Float” the rider’s fare Biggest Risk is Giving One Ride

Open Payments Ways to Minimize the Costs and Risks Check a Hot List Check a Cold List

Open Payments How do you get more on the Cold List? Provide incentives to get multi-trip or timed passes “Mid-term” passes especially important Encourage subscription of accounts for auto loading of fares

Open Payments Purchasing multiple fare types on-board or at a fare machine Touch Screen Proximity Card Validator Provide more choices than Adult, Child, Reduced Fare, etc.

Open Payments Purchasing multiple fare types on-board or at a fare machine Creation of a “Warm” List of Cards Possible to Default Last Fare Purchased Give Riders Choices

Open Payments Take Focus off Single Ride Fares Open Payments provide much more flexibility Risk is still limited to a single ride

Thank You For Your Attention Carl Commons ccommons@initusa.com 757-413-9100 x331