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

Apple to Enable Campus ID Cards in Wallet but Doesn’t Announce Opening of NFC Chip

NFC TIMES Exclusive Insight – Apple will enable colleges and universities to add NFC-based student ID cards to its Wallet with OS upgrades to its Apple Watch and iPhone, the tech giant announced Monday on the opening day of its Worldwide Developers Conference.

Barclays Embeds Contactless Chips in Bands for Brand-Name Watchmakers, Hoping to Boost Payments Wearables

NFC TIMES Exclusive Insight ­– The first contactless payments wearables resulting from UK-based Barclays partnerships with seven mostly analog watchmakers are beginning to roll out, with more planned–all using the bank’s bPay contactless chips and payments service.

Google Makes Progress Signing up Merchants in India for Tez Payments Service, but Penetration Still Low

NFC TIMES Exclusive – Google has signed up 640,000 small merchants in India to use its mobile payments service, Tez, a Google spokesman told NFC Times.

Vancouver’s TransLink Launches Open-Loop Ticketing, Though Offers Daily Riders Few Incentives to Tap Bank Cards to Pay

NFC TIMES Exclusive Insight – Vancouver is the latest major city to enable riders to tap to pay fares with contactless bank cards, including card credentials loaded into such NFC-enabled mobile payments services as Apple Pay, Google Pay and Samsung Pay.  

Walmart Quietly Ends Trial of App that Would Have Enabled Customers to Avoid Checkout Lanes in Supercenters

NFC TIMES Exclusive Insight – Walmart Inc. has ended a trial of its Mobile Express Scan & Go app in its Walmart stores in the U.S., which had enabled shoppers to scan their items themselves and pay with a stored credit or debit card, then leave the store, after having a greeter scan a bar code in their apps to briefly check the receipt.

Another Large Chinese City Supports QR Code-Based Transit Ticketing

NFC TIMES Exclusive Insight – Another major Chinese city is accepting QR code-based payments for transit fare collection, with riders of the Shenzhen Metro now able to use WeChat Pay to cover the fares.

Deutsche Bank Plans to Expand New Payments Service for Airlines to Other Industries, Though No Rollouts Yet Scheduled

NFC TIMES Exclusive Insight – Germany’s largest bank, which announced plans Monday to pilot a new payments system for airlines that would enable travelers to buy tickets without pulling out their credit or debit cards, is also planning to expand the scheme to other industries, a bank spokesman told NFC Times.

Apple Touts Strong Growth of Apple Pay Globally, though Again Fails to Release Actual Transaction Figures

NFC TIMES Exclusive Insight – Apple said the number of Apple Pay users doubled globally while transactions tripled during the last quarter, but the company did not release many details explaining reasons for the increases and again released no actual figures on Apple Pay usage.

Contactless Payments Continues to Grow for Transport for London, Helped by Fare Capping

NFC TIMES Exclusive Insight – Transport for London this week was again trumpeting its move to open-loop fare collection with contactless credit and debit cards and applications on NFC phones–noting that contactless payments now accounts for half of all pay-as-you-go metro and rail rides in and around the UK’s capital.

Visa and Mastercard Hope New Online Payments Spec Will Accelerate Rollout of Tokens; U.S. Merchant Group Blasts Network Move as Anticompetitive

Apr 26 2018

NFC TIMES Exclusive Insight – Major card networks Visa and Mastercard hope a new technical framework for online transactions they are backing from their jointly owned EMVCo specifications group will help them keep more transactions on their networks, amid growing competition for mobile and other digital payments and lackluster take-up of the networks’ respective online digital wallets, Visa Checkout and Masterpass.

Second Smartwatch Supports Fitbit Pay, but Payments Service Remains Fragmented

NFC TIMES Exclusive Insight – Struggling wearables maker Fitbit on Monday began selling its second smartwatch, the Fitbit Versa, supporting its NFC-enabled Fitbit Pay service, but not all versions of the new device support NFC in the U.S.