1. Psychology of Mobile vs Meter Payments
Jeff Nethery
Senior Parking Advisor & Director of Business Development
Cale America Inc.
Khristian J. Gutierrez
Chief Business Development Officer
Passport
July 1, 2015

2. Rapid Innovation in the Space Continues
Municipal Initiatives
Diversify payment options
Increase compliance
Encourage turnover
Align with customer interests
Deploy “business-friendly” systems
Emerging Payment Modes
Introduction of third party wallets (e.g. Google, PayPal)
Rise of new payment technology (e.g. NFC, BLE) allowing physical mobile payment at the meter itself
LEGACY HARDWARE
ELECTRONIC PAYMENTS
MOBILE PAYMENTS

3. Mobile in Parking & Transit

4. Transaction Values & Utilization
Well, “IT DEPENDS”...
...Data proves that consumer behavior is heavily influenced by existing parking environment
Single Space Meters
Coin
Credit Card
Multi-Space
Pay and Display
LPN
Space-Based
Mobile Pay Only
On Street
vs.
Off Street
Source: Passport, Asheville NC
High Rate
vs.
Low Rate
“Convenience Fee”
vs.
No “Convenience Fee”
Source: Cale, Deerfield Beach, FL

5. Meter Feeding Municipal Initiatives Turnover Increase payment options
Increase compliance
Encourage turnover
Align with customer interests
Deploy “business-friendly” systems
Software Solutions
Max parking features for mobile (vs. hardware anonymity)
App messaging
Businesses/Agency controlling employee parking
Temporary parking lockout times
“Stop Parking” features vs. extensions
Muni incentives toward apps (longer sessions supported)

6. App Supply vs. Muni Demand
Market Commentary
Municipalities issue new procurements for mobile payment each week
Is mobile pay right for every environment?
North American Parking Market supports 10+ mobile pay vendors
4 - 5 software vendors competing for most of the mobile payment contracts awarded in the United States
Market has been heavily commoditized leading to:
pricing pressures
product undervaluation
de-”productized” offerings (i.e. everything for nothing)

7. Mobile Payment Options
The Introduction of Private Labels
What is a Private Label Application?
So what? Do municipalities care? Do users care?
What’s the effect, if any, on the parking customer?
Regions with multiple applications
Transient user base?
Does operator branding affect utilization?
Multiple Provider Model
Do mobile customers need more choices? Like Visa, MasterCard and American Express?

8. What App Users Worry About
Registration Times
Paying by mobile app, but getting cited anyway
Trust – is the service legitimate?
Convenience or service charges
Opening to Intrusive Marketing – ads instead of paying to download or use an App
Privacy - access to location and buying patterns
Fraud Risk – hackers shifting to mobile phone apps
Facebook Login for First-time User

9. What Meter Users Worry About
Waiting in long lines
How far do you have to walk
Time of purchase and enforcement latency
Meter not accepting payment, but parking still enforced
Weather
Guessing time allotment
Communication of setup (pay and display vs. pay by space or plate)
Receipts
“Will this eat my card?”
“Is there a skimmer on this?”

10. Data, Privacy & T&C
What are your customers agreeing to?
Customers may be concerned (and rightfully so) about their personal information being associated with their parking session or even worse, shared with third parties
Level of anonymity may help increase
Who owns the data?
Who defines the Privacy Policy or Terms and Conditions?
Does the customer care?
Do login methods support anonymity?

11. Platform Security: Hardware vs. Software
What requirements do agencies have for their technology suppliers?
Any additional certifications?
What does the end-user see or care about?
Authentication methods
Ease of use vs. Highest promise of security
“Target’s Breach Saga Continues...
June 2015
Secure Elements inside hardware
EMV Migration
Exposed terminal
Potential points of weakness or failure
“Chicago, Evanston Garage Hardware Hacked for Credit Card Data”
Nov. 2014
“Latest Starbucks breach could stem from weak passwords.”
May. 2015

12. Incentives in Market
Deerfield Beach, FL – fix fee added to each expired transaction
Chicago, IL – no fee if you purchase max time
Aspen, CO & Toronto, ON – city pays all fees
Washington DC – only way to pay by credit card is via mobile
lower “convenience fee” if wallet is used
Victoria, BC - “no convenience” fee if “wallet” is used
Miami Beach, FL - resident discount program effective and deployed through app

13. Conclusion Communities prefer multiple payment options
Assure customers of their anonymity when possible
Consider customer privacy when developing operational policies
Over-communicate your privacy policy, what data is being collected and how it will be used, for both meter payments tied to plate numbers and mobile payments
Speak with municipalities with similar environments to understand deployment setups of their hardware vs. software mix
Solutions that work in one environment may not be right for another
Define objectives and goals of procuring hardware or software
Demographic considerations (e.g. young professionals vs. students; bikers vs. parking customers)
Revenue objectives
Compliance objectives
Consumer experience objectives
“Future-proofing”