Alliance Activities : Publications : Multimodal Payments Convergence – Part Two: Challenges and Opportunities for Implementation

Multimodal Payments Convergence – Part Two: Challenges and Opportunities for Implementation

Publication Date:  November 2018

The mobility options available to travelers are expanding, and services such as ride-hailing, bike share, car share and micro transit have grown rapidly.  Travelers can get real-time information on available transportation options, but payment for each type of service varies and can be confusing.  Travelers expect convenient ways to plan, book and pay for multimodal transportation.  Transportation service providers want to leverage new technology to provide better service to customers.  Integration of payment services across transportation modes is a natural part of the evolution to seamless mobility services.

This white paper, the second in a series, “Multimodal Payments Convergence – Part Two: Challenges and Opportunities for Implementation,” describes alternative visions of multimodal payments, the drivers and benefits of payments convergence, potential barriers to implementation and suggestions for actions to achieve payments convergence.

The first white paper, “Multimodal Payments Convergence – Part One: Emerging Models and Use Cases,” explored real-world implementations of payments convergence to provide a foundation for transit agencies considering supporting these new models in a new white paper released today.

The Secure Technology Alliance Transportation Council advocates that industry stakeholders continue to play a role in defining multimodal payments challenges and opportunities, and facilitating information sharing and collaboration among the transportation, payment and technology sectors.

Partnerships among key industry groups, such as the Secure Technology Alliance, U.S. Department of Transportation (DOT), the Fare Collection Systems Committee of the American Public Transportation Association (APTA), and other industry associations will help to develop guidance for payments convergence. Working with the U.S. DOT Federal Transit Administration and the Volpe Center is critical to develop and disseminate a Framework for Mobility Payment Integration.  These efforts may include collaboration to ensure use of open APIs, common data definitions, data sharing agreements, improved customer education, innovative contracting methods, partnership agreements and other guidance to help drive convergence.

The Transportation Council also recommends that industry work with U.S. DOT to identify priorities for demonstrations of innovative payments convergence, and to promote adoption of multimodal payments best practices.

Technology providers and system integrators should develop and implement open payment system architectures, with flexible capabilities to link to any type of transit and mobility service.

Mobility service providers and payment processors should adopt open APIs and agree to share data to enable payments integration among all types of mobility services and payment accounts.

Cross-industry collaboration on the models, policies and infrastructure can help the U.S. transportation industry move more quickly to multimodal payments convergence and deliver its benefits to all stakeholders.

About the White Paper

This white was developed by the Secure Technology Alliance Transportation Council to describe alternative visions of multimodal payments, the drivers and benefits of payments convergence, potential barriers to implementation and suggestions for actions to achieve payments convergence.   Council members and guests contributing to the white paper included:  American Express; Axonvibe; Cardtek; Clevor Group; Discover Financial Services; Everis; FIS; FourNines; Genfare; Incomm; Invoke Technologies; KPMG; Mastercard; Metropolitan Transportation Commission (MTC); Quadagno & Associates; Southeastern Pennsylvania Transportation Authority (SEPTA); Trekbikes; U.S. Department of Transportation (DOT)/Volpe Center.

About the Transportation Council

The Transportation Council is one of several Secure Technology Alliance Technology and Industry Councils, focused groups within the overall structure of the Alliance.

The Transportation Council is focused on promoting the adoption of interoperable contactless smart card and other secure device payment systems for transit and other transportation services.  The Transportation Council includes participants from across the transportation industry and is managed by a steering committee that includes a broad spectrum of industry leaders.

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