Problem:  For their system upgrade, many transit agencies want to accept cards issued by financial institutions but they lack a system to successfully integrate credit / debit cards as transit cards without exposing either the agency or the financial institutions to an unmanageable risk of fraud.

Solution: Smart Systems has proven fraud prevention technology and patents based on the Seoul system, the first to enable deferred payment on public transit. It uses the existing credit card infrastructure in banks and avoids transit agencies having to duplicate it. This offers unsurpassed convenience and robust security at tremendous cost savings for agencies.

Transit Solutions

Advances in computing and network technology reduce the need for a conductor or driver to check passenger fares. Transit agencies can realize additional savings with banks issue transit-ready payment devices embedded in credit or debit cards rather than manufacturing their own transit passes. Riders pass through transit gates or board buses without extracting their pass cards from purses or wallets and can access multiple modes of transit with a single card. Payment may be deferred to a later date.

Advantages of our Smart Card system

Agency

• Transit agency need not pay for cards
• Issue fewer house cards or tokens, save money
• Less revaluing of stored value cards – less administration costs
• Less restocking of disposable tickets and M/S cards, printers, etc.
• Less cash volume from vending machines
• Less house card or transit purse accounting
• Avoids or reduces management of e-purses
• Drivers’ and conductors’ work minimized
• Super-fast gates reduce need for expansion of stations, reduces dwell time
• Regional interoperability easier to achieve
• Can be combined with related operations like tolls, parking, etc.
• System will adapt to future evolution easier because it’s entirely electronic
• Administration can be outsourced

Passenger

• Passengers need not take out card from wallet or purse
• Convenient for handicapped persons
• Card secure against theft
• Passengers can pay later
• Passengers can earn miles for transit
• Commuter discounts can be retroactive, depending on use
• Passengers can have one card for both transit and non-transit use

Using contactless bankcards enables deferred payment on public transit. The first such system was installed in the Seoul Metro in 1996 and is now linked with buses and regional trains. Today, over 30 million transit credit/debit cards issued by eight banks make 7 million transactions daily.