Competitive Advantages of Offline over Online system

ON-LineOFF-Line
High implement costLow implement cost
Transaction is slowerTransaction is fast
Need a reliable & low latency networkLess dependent on network
The server requires high performance and
high availability
No need for high performance &
high availability server
7/24 supportno need for 7/24 support
High operating costLow operating cost
Operating cost is directly dependent
on the number of users, and the number
of concurrent transactions.
Operating cost is independent of
the user population and the
number of transactions.

Most AFC system suppliers don’t understand off-line technologies

What they are really supplying is merely a sophisticated and expensive online system with integration of the following features:

  • Terminal devices with network 3G/4G capability
  • Key security with security access module (SAM)
  • Smart Card with high security and durability
  • Fully integrated system with backup facilities
  • Interoperability with different card system
  • High availability server system
  • Sophisticated clearing center
  • Sophisticated reporting

They simply assume that network is always available and terminal devices will always able to send data back to the server.

No system suppliers mention how to handle transaction record lost due to terminal device failure.

Transaction between card and terminal is done in real time, but the transaction record is sent to server in a delay manner.

There is a chance of losing record due to device failure even in a fraction of a second.

iBonus ® AFC system assumes network is NOT always available

Our server manages the sequence of delayed transaction records and can fill the holes.

Our server handles the security of the card by monitoring abnormality.

It is a true off-line based system and is cost effective.

Our systems used by US Army and UN World Food Program survived even in the harsh environment in countries like Afghanistan, Syria, and Iraq where network or Internet is not always available.

SF Bay Area’s MTC to deliver next-generation fare payment technology and operational services to the Clipper

Source from finextra.com

Clipper currently links 22 regional transit operators and facilitates more than 825,000 journeys per weekday across bus, rail, subway and ferry services, operated by Cubic since 2009

Last year, a $349 million contract promised to deliver a range of new features.

The new system will be rolled out in phases over a five-year period transitioning into a ten-year full operations term commencing in 2022.

Mobile App-based

An integrated mobile app that will enable customers to access real-time information, reload their accounts, plan trips and tap their phones as virtual Clipper cards through fare gates and on buses in much the same way.

The major benefit will be user-friendly and a one-stop service from the mobile App.

Account-based

Online fare purchases will be made immediately available for use and an account-based architecture coupled with an open API portal will facilitate creative partnerships and systems extensions.

The benefit will open up more applications for the convenience or benefit to the passengers or users.

The drawback is that the taxpayer will have to absorb the initial huge investment and also giveaway the local profitable business to Visa, Mastercard, Apple pay,…

Conclusion

The plan has not clearly stated that mobile communication technologies to be used. Will it be still using existing NFC and maybe QR code-based technologies?

This is a critical step toward a truly smart city in which people don’t have to carry any more cards.

The author has 18 years of experience in the related industry. To learn more about the new technology of mobile payment for automated fare collection, please visit mobileafc.net

New York City public transportation fare collection system lags behind third world countries.

New York City public transportation fare collection system lags behind third world countries.

Hillary Clinton, who had to swipe 5 times in a row to enter the subway in New York City during her presidential campaign in 2016.

MetroCard System

One of the greatest symbols of the outdated system is the MetroCard — the flimsy fare card that was introduced a quarter-century ago.

Plans to replace the MetroCard over the last decade have been mired in delays — and costs have soared — even as other cities adopted more durable tap cards. Washington’s subway introduced its SmarTrip card two decades ago, and Hong Kong has the Octopus card 30 years ago.

OMNY System

OMNY is being put in place by Cubic, a payments company behind the MetroCard and that oversaw London’s fare system. The project is expected to cost about $644 million — $200 million more than what the authority estimated in 2016.

The agency will offer a physical OMNY card in 2021, and the MetroCard will meet its demise in 2023. Subway officials say there will always be a cash option for New Yorkers who do not have bank cards or smartphones.

The idea has progressed in fits and starts. A decade ago, the authority’s chairman, Jay Walder, had wanted to bring “tap-and-go” cards to New York after he implemented the Oyster card in London. Officials wanted to phase out the MetroCard as early as 2012, but it did not happen, in part because credit card companies were slow to make their cards compatible.

The conclusion

New York City does not learn the financial model which Hong Kong adopted more than 30 years ago and the Octopus Card in Hong Kong is the most success cashless payment from public transportation to the retail market.

It is very important to understand the relationship among all stakeholders in the automatic fare collection system. It is so obvious that the biggest winner for the new OMNY system is the credit card issuers because they will earn the transaction fee without investment and the biggest loser is the New York City government who has to pay US$ 644 million without any financial benefits at all.

The writer has over 19 years of experience in the related industry. To learn more about the latest mobile technology for automatic fare collection system, please visit http://mobileafc.net