Transport for London Prepares to Accept Contactless EMV Cards on Tube; Warms to Mobile NFC

Transport for London has launched a key user trial as it gears up to accept fares on the London Underground and its other modes of transport from contactless EMV credit and debit cards, and for the first time is beginning to sound more positive tones about possibly accepting payments from NFC phones.

The transit authority, which introduced open-loop card payment of fares to more than 8,000 buses in December of 2012, might be late again with its expansion to the next phase, which involves launching a sophisticated backend system to calculate fares from cards. It had planned to be ready by this summer after delaying the launch from the end of last year. But it now says it will be ready only later this year. 

The agency hopes to one day replace its large closed-loop Oyster scheme, which, while popular, is expensive to operate. Contactless readers that Transport for London is rolling out also will continue to accept Oyster. 

Meanwhile, director of customer experience, Shashi Verma said that “in principle,” the upgrade of Transport for London readers to accept contactless bank cards, supporting Visa payWave, MasterCard PayPass and American Express ExpressPay credit and debit cards would also mean they could accept these applications on mobile phones. 

While he didn't say that the authority would promote such payments, he had been more skeptical in the past that mobile NFC would be fast enough for payments at busy gates for the Underground, or Tube. The authority indicated there are ongoing tests of mobile-NFC payments, but did not elaborate.

Words:

1,700 

Graphics:

Chart: transaction times in tests of EMV cards that could be used for fare collection, Dec. 2012, Jan. 2014
Chart: Open-loop fare-collection projects, UK, USA 

Among Topics Covered:

  • Expansion of fare collection from contactless credit and debit EMV cards and, possibly, NFC applets on London Underground, light rail and national rail in and around the city.
  • Attitude of Transport for London officials to possibility of using NFC devices to pay fares appears to be warming, though further tests still needed
  • Tests showing relatively high transaction times for contactless EMV cards that could be used to pay fares on London buses
  • Consultant suggests host-card emulation is an option to increase transaction speeds for fare collection conducted on NFC phones
  • Second phase of open-loop fare collection project, including implementation of sophisticated back-end payment system
  • Prospects for launching second phase of open-loop project on time and for accepting payment of fares from NFC phones
  • Acceptance of prepaid cards and applications on NFC phones remains questionable

Sources quoted:

Shashi Verma, director of customer experience, Transport for London
Peter Lewis, external initiatives manager, Transport for London
John Elliott, head of public sector practice, Consult Hyperion 

Among companies and organizations mentioned:

Transport for London
Cubic Transportation Systems
Consult Hyperion
Visa
MasterCard Worldwide 

This is premium content from NFC Times. 

Read Full Article 

© NFC Times and Forthwrite Media. NFC Times content is for individual use and cannot be copied or distributed without the express permission of the publisher.

HEADLINE NEWS

Mastercard Backs Open-Loop Transit Payments in Taiwan’s No. 2 City

NFC TIMES Exclusive Insight – Kaohsiung, Taiwan’s second-largest city, plans to enable riders to enter subway gates by tapping contactless EMV credit cards and NFC wallets by the end of the year, working with Mastercard.

Traditional Watchmaker Fossil Adds NFC Payments, Heart Monitor to Smartwatch Line, as It Seeks to Reverse Earnings Slump

NFC TIMES Exclusive Insight – Struggling U.S.-based watchmaker Fossil has introduced NFC for the first time, in its Q line of smartwatches, hoping the support for Google Pay and other smartwatch applications will help the mainly traditional watchmaker to stay competitive as more consumers turn away from traditional watches.

Analysis: Apple Touts Growth, as It Releases First Global Transaction Figure for Apple Pay; but Service Continues to Face Challenges

NFC TIMES Exclusive Insight – Apple released the number of global transactions for its Apple Pay service–believed to be the first time it has done so–as the tech giant touted a tripling of transactions to more than 1 billion for the latest quarter. Apple also disclosed plans by two more large U.S. retailers to accept contactless payments and announced that another major country, Germany, would support Apple Pay, later this year.

Japan’s SoftBank Group Plans Digital Payments Service; Can It Convince Consumers to Part with Their Cash?

NFC TIMES Exclusive Insight –  SoftBank Group’s reported plans to launch a mobile digital payments service in Japan by year’s end–collaborating with Indian mobile payments provider Paytm–is an attempt by SoftBank Group founder Masayoshi Son to do what other large companies have tried and failed to do: wean Japanese consumers off of cash.

Garmin Unveils New Smartwatch Series Supporting Garmin Pay

NFC TIMES Exclusive Insight – U.S.-based wearables maker Garmin has introduced a fourth smartwatch to its lineup of devices supporting its NFC-enabled payments service, Garmin Pay, the high-end D2 Delta watch series targeted at aviators or aviator wannabes.

Hong Kong Subway Operator and Majority Owner of Octopus Pursues QR Code-Based Transit Payments

NFC TIMES EXCLUSIVE Insight – Hong Kong’s MTR Corp., which runs the city’s subway system, next month will accept tenders from technology and payments providers for a QR code-based fare collection service that will serve as an alternative to its much-used contactless Octopus card.

Open-Loop Payments Connected with Campus ID Cards Not to be Included in Apple Wallet

NFC TIMES Exclusive – NFC-based student ID cards provisioned to Apple Wallet beginning this fall won’t include the open-loop debit payments that are often part of plastic student ID cards, NFC Times has learned.

Milan Launches Support for Open-Loop Transit Payments; Other Cities Move Toward Accepting EMV Payments

NFC TIMES Exclusive Insight – Milan is the latest city to enable collection of fares by contactless bank cards and NFC phones, with public transport company Azienda Trasporti Milanesi, or ATM, rolling out the service to more than 100 stations on its metro system. The company plans to expand the open-loop payment service to buses and other surface transport modes it manages.

Google Launches First Major Pays Wallet in Germany, but Growth Prospects Appear Dim

Jun 27 2018

NFC TIMES Exclusive Insight – Google Pay launched today in Germany, making Google the first of the major backers of a Pays mobile wallet to launch service in the country. Yet, prospects for Google and any of the other international Pays that decide to launch in Europe’s largest economy are not promising.

UnionPay Pushes Open-Loop Transit Payments, as It Seeks to Stay Competitive with Alipay and WeChat Pay

NFC TIMES Exclusive – China’s major bank card network China UnionPay is badly losing the battle for mobile payments market share against Ant Financial and Tencent Holdings, and now the two Internet giants have turned their attention to enabling mobile transit ticketing across the country.

Taiwan’s EasyCard Gives Stark Example of Problems Some Major Transit and E-Money Payments Providers Face in Enabling Mobile Payments

NFC TIMES Exclusive – HANOI, Vietnam: For several years, EasyCard Corp. of Taiwan has been seeking to enable its popular transit fare collection and retail e-money service for mobile and other digital payments, but it has hit several roadblocks along the way.

Launch of Apple Pay in Japan Boosts User Numbers for Mobile Suica, but Most Transactions Still Use Cards

Jun 9 2018

NFC TIMES Exclusive – HANOI, Vietnam: Since Apple Pay launched in Japan in the fall of 2016, the number of users for the Mobile Suica transit and retail payments application has grown by 50%, although the vast majority of transactions for Suica are still conducted with cards.