Account

Based
Ticketing
(ABT)
#4388647
Presentation Overview

• Background on Automatic Fare Collection

• Account Based Ticketing

• NDOT/SANRAL ABT Solution

• Cost Considerations

• Conclusion
Background
Public Transport in South Africa

• Public transport plays a significant role in the social and economic

development of SA.

• A direct influence on quality of life of many citizens.

• No. of commuters reliant on public transport is expanding, and significant

investment has been earmarked by Government to improve and modernize
public transport services.

• Government has embarked on a program to transform services into an

integrated mass rapid transit network.

• Strategic initiatives by transport authorities are aimed at transforming

“from commuter-based modal transport to customer [user]-based public
transport”.
Public Transport in South Africa

• Cash is a problem for commuters and operators

• Administration and management of collection of cash fares, with the

concomitant security issues makes fare collection onerous.

• For a cash replacement Automatic Fare Collection system the acceptance

infrastructure must be ubiquitous in order to be as attractive as cash.

• Authorities and Operators are looking at ways to improve fare collection to meet
a number of objectives, amongst others:
ü eliminate the use of cash
ü reduce operating costs
ü improve fare collection efficiency
ü introduce innovative and appropriate fare structures.

• The NDOT Account Based Ticketing solution (ABT) solves these questions
Account Based Ticketing
(ABT)
What is Account Based Ticketing (ABT)?

• Most traditional transport ticketing systems are ‘Card Centric’. Means

travel information and right to travel stored on Fare Media. These are
‘Closed-loop’ systems

• Account Based systems are ‘Open-loop’ meaning Back Office centric

Automatic Fare Collection Systems

• Provide a greater degree of convenience for passengers than ‘Closed-

loop’ and cash-based ticketing systems, while saving transport
providers money.

• In Account Based Ticketing (ABT) all transactions are validated and

processed in the Back Office, meaning the right to travel is managed
in Back Office and ticket or Fare Media is a token or identifier that is
linked to the commuter’s account
Transforming e-Toll Account to Mobility
Account

• SANRAL has a sophisticated back office system to manage the collection of e-tolls.

• This system consists of account hosting and transaction processing functionality

at the Transaction Clearing House (TCH) that has the capacity to process millions
of transactions per day.

• The system functionality has been extended to include the implementation of an

Account Based Ticketing (ABT) fare collection solution for public transport.

• NDOT requested SANRAL to initiate discussions with Public Transport Operators

(PTOs) to utilise the ABT solution to implement Integrated Fare Management (IFM)
that will enable interoperability between all participating PTOs across all modes
and services.

• SANRAL will only provide the ABT Back Office as part of the solution (The TCH).
The PTO remains responsible for the provisioning, management and updating of
all other fare collection infrastructure/systems and integration (AFC).
TCH Account Structure

Only Transit Only Transit

Mobility Account Mobility Account

(Anonymous) (Registered)

Transit Contract Transit Contract

PAN/Card 1 PAN/Card 1

PAN/Card 2

PAN/Card 3

PAN/Card n
Pre Paid Pre Paid with min Threshold
The NDOT ABT solution
NDOT ABT

• Account based prepaid fare collection product for AFC

ü Card holder has a prepaid Mobility Account at the TCH.
ü Fare collection transaction is a claim on the prepaid deposit held at the TCH.
ü The card holder is anonymous but can elect to register a personalised account.
ü A fully auditable system.

• An industry solution and not a Public Transport Operator solution.

ü Based on non-proprietary open standards to avoid closed loop non
interoperable solutions and vendor lock-in.

• Go as fast as the fastest Operator.

ü Window of opportunity for early movers.
ü Based on open standards and late movers can “plug-in” when ready.

• The SANRAL TCH provides account hosting and transaction processing

services to the public transport industry.
What is the NDOT ABT solution?

• “True” ABT is: • NDOT ABT:

• A Ticketless way to travel, by • Is a Hybrid ABT system
tapping or scanning a secure • Is a Ticketless way to travel
token • The token is linked to an account
• The token linked to an account in in the back office
the back office, • Stores information in the back
• Any value or information on the office and also keep some
account is stored in the back information on the card (to
office only (Back Office centric overcome potential offline
solution) scenarios)
• The fare is charged to the • Utilises NDOT Central back office
commuter post the journey (hosted by SANRAL) – immediate
• The traditional transport travel interoperability
card does not have any value • Transport Operator keep its own
stored on the card chip but acts AFC back office
as identification of the traveller • Based on CIPURSE open
only standards as published by the
• Validators do not write any data (OSPT) Alliance
on fare media
• Validations lists
• System constantly up to date
NDOT Transit Data Structure

• To achieve this a Data Structure was formulated.

ü Data structure is carried on all fare media to be used for public transport.

ü All Transport Authorities, Operators and technology providers need to ensure

that data is written to, and read from the card, in a specified format and
manner.

• ABT card has NDOT data structure equivalent functionality

• ABT card has sufficient capacity to accommodate additional Operator

specific requirements
NDOT ABT Conceptual Overview
 NDOT ABT Stakeholder Functions and
Responsibilities

1. Fare Media Issuers 2. Public Transport Operator 3. Transaction Clearing House 6. Payment Channels
PTOs Complete AFC System Account Hosting Appointed Agents
• By choice • Readers/Validators • Mobility Accounts • Accept payments and transfer to
• Dependent on fare media in - Station gates Transaction Processing TCH for credit to Mobility
circulation issued by other issuers - Busses • Receive transactions from PTOs Accounts
Third party issuers • AFC back office • Receive transactions from top up - PTOs
• Retailers - Application software agents - Retailers
• Large business - Fare structures & rules • Process all transactions against - Spaza shops
• Government - Validation list download & Mobility Accounts - Informal traders
• Clubs and Associations distribution • Settle PTOs for transactions - Fare media issuers
• Reward and Loyalty programs - Transaction collection and submitted • Settlement of transactions
transfer to the TCH • Receive settlement for top ups submitted to TCH
- Settlement reconciliation from Agents
- Data communication systems
Role Players

1. | 2. Fare Media Issuers

ü Issuing of Fare Media.

o Commuters will be able to obtain a prepaid stored value card from 3rd party card
issuers.
o Public Transport Operators will issue their own branded ABT cards.
• Operator will issue/sell cards by choice as opposed to obligation.

3. The TCH (SANRAL part)

ü Host Mobility Accounts.

ü Process transactions submitted by Operators
ü Settlement of submitted transactions
Role Players

4. NPS System Operators.

ü Provide transaction switching services.

6. Retailers and Other Appointed Agents.

ü Prepaid payment top up & loading PoPs.

ü Card distribution and sales.
Role Players

1 | 2. Technology Suppliers.

ü Fare Collection Validators.

o Develop readers with CIPURSE specification contactless functionality.
o Develop applications to read/write to the card.
o Provide the AFC back office to the Operator and relevant interfaces for top ups and
transaction processing.

2. Transit Authorities and Operators.

ü Plan and implement public transport services in support of Government’s ideal
of user driven fully integrated public transport services.
Context of the NDOT ABT Solution
Mobile App/ Transfer to Mobility
Internet Banking/ account via EFT or
Credit or Debit Card Card Settlement
Fare Transactions
Public
Account Validation List Transport
Holder’s Operator A
Settlement
Bank

Fare Payment and Collection

Credit Mobility Account

Debit Mobility Account

Fare Transactions
Register Public

TCH
Commuter Mobility Validation List Transport
Account Operator B
Settlement

Retailers Fare Transactions

Or Public
PTO Kiosks Validation List Transport
Operator C
Settlement

Transfer to Mobility
Deposit by cash or
account via EFT or
card
Card Settlement

Fare Media

Card/Phone
ABT Fare Media alternatives

• Proposed NDOT approach accommodates the continued use of:

• EMV Based transactions on current operator systems
• Existing Business and Fare Rules
• NDOT AFC Regulations will be updated to reflect this

• ABT solution and fare specifications is based on Open Standards

from the OSPT Alliance, endorsed/adopted by NDOT

• Fare media compliant with OSPT Alliance standards, supporting the

ABT solution can be issued (and branded) by:
• Public Transport Operators linked in with the ABT solution
• Third Party issuers, for example Retailers providing top up functionality
(Shoprite Checkers)
• SANRAL/DoT
Benefits of the NDOT ABT Solution
• Lower Operational Costs with savings in cash handling and ticket issuing.

• Cost effective in terms of capital expenditure as well as operational cost.

• Improved commuter experience.

• Commuters only pay for services utilised with no expiry of tickets.

• Interoperability - The ability to use one fare media for multiple public transport modes and
services.

• Simplified sales infrastructure for operators.

• Loss of fare media is not a loss of a ticket or value.

• ABT can co-exist with other fare collection systems.

• Extensive top-up point-of-presence.

• Mobility Accounts can be topped up via internet banking or Mobile App.

• Easy access to travel history for commuters.

• There is no need to establish a clearing house infrastructure and settlement function and
operation for the redemption and settlement of obligations between Public Transport Operators.
Cost Considerations
ABT Cost Considerations

• Implementing ABT
• AFC Back Office – Transport Authority
• Validators – Transport Authority
• Fare Media
• Estimated at c. € 1 ABT vs € 3.5 EMV
• Commercial Agreement DOT/SANRAL/Transport Operator
• Transaction Cost
• Load/Topup Fee
• No Cash Handling
Conclusion
Next Steps

• Approve Commercial Model

• Transaction Processing fee

• Commission to top up agents

• Expand top up network

Conclusion

• DOT ready to start planning and implementation immediately

• Looking to identify Transport Operators and routes that are ready for
Pilot

• Assist PTOs with framework for tender document for ABT compliant
AFC system

• Discuss next steps and team cooperation