Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
APRIL 11, 2018
Subject
SUBJECT: TAP MOBILE AND ACCOUNT-BASED SYSTEM UPDATE
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE TAP Mobile and Account-Based System update.
Issue
ISSUE
The Finance, Budget and Audit Committee requested an update on TAP technology development, including 1) update on enabling TAP to be used to pay for multi-modal account-based programs such as Bike Share; 2) update on the TAP mobile app and; 3) next steps for TAP.
Discussion
DISCUSSION
The Account-Based System
Metro continues to enhance the TAP system to improve and expand payment options for our customers. One of the biggest changes in TAP includes building the architecture for a hybrid, account-based system with Salesforce. This account-based solution is layered on top of TAP’s existing smart card system, used by 26 regional agencies. While the TAP card was designed for fare payment on the transit system, account-based architecture is necessary for much-needed integration with outside entities such as Bike Share, LIFE, Electric Vehicle Car Charging, Microtransit, Ride-Hailing and more.
TAP App Features
A new TAP mobile app as well as the existing taptogo.net website will feature seamless connectivity and convenient registration for new multi-modal programs, all in one centralized place. The app and the website will enable cash participation by customers without credit cards as well as numerous other fare payment options, including Apple Pay and Google Pay. Plans include rewards to incentivize behaviors and discounts that can be personalized for any program. Customers can also take advantage of other tools such as geo-located trip planning, transit arrival times and TAP partner information. In phase one, the customer will be able to load a physical TAP card by tapping it on the app, and in phase two, the customer will be able to actually use the phone itself as a TAP card.
Regional TAP App Functions
The new app will offer the ability to filter by transit mode or agency and will support all regional TAP partners. Customers can search for TAP information, vendor locations, frequently asked questions (FAQs) and more. TAP Partners will be able to take advantage of customizable discounts that may be applied quickly and easily to their own agency fares.
Entertainment and Sports Partnerships
Bar code ticketing opportunities will be available on the app for joint efforts with college or professional teams and other sports/entertainment events such as festivals, concerts or the Olympics. The app will be able to provide tickets that will not only provide entry into the event, but also enable transit rides that will reduce traffic and incentivize further transit use.
Innovative, Cost Effective Solution
This hybrid account-based solution is very innovative and cost-effective, especially in light of the fact that other major transit systems such as Chicago, New York and Boston are spending hundreds of millions of dollars on full account-based systems. TAP’s solution is being built at a fraction of the cost and will feature nearly all the same benefits, without changing out our base system. Changing a base system can be very difficult for customers, with associated steep learning curves. Adding onto our existing system with beneficial and updated features offers lesser impacts and a much better customer experience.
Access for the Unbanked
Multiple modern account loading choices will interface with all programs, and provide a unified customer service. Both the TAP website and the TAP app will provide the ability to load cash into a customer’s TAP account. This process enables the unbanked to participate in programs in which they were unable to participate in the past, due to the lack of a credit card. This will enable all the customizable rewards, incentives, event-ticketing capabilities and discounts that credit card customers enjoy.
Other TAP Initiatives
Additional TAP initiatives that are ongoing are: transfer on 2nd boarding, chain store off-the-shelf TAP cards, addition of Stored Value purchases on bus, token transition to TAP, TAP wearables, Regional TAP Vending Machines, and TAP Vending Machine screen upgrades.
Financial_Impact
FINANCIAL IMPACT
There is no additional financial impact of the items in this report, since they have been previously budgeted in the FY2017 and FY2018 budgets.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Alternatives considered could be to stop any or all of the progress on the above items but this is not recommended, as customer experience will be negatively affected.
Next_Steps
NEXT STEPS
TAP will finish building the hybrid account-based system with Salesforce by February 2019.
The Mobile App will begin testing in Summer 2018 with focus groups and user interface testing. Public launch is expected in Winter 2018.
Equipment upgrades are being explored for outdated fareboxes that exist on the nine original agencies on TAP to take advantage of many of the new abilities that the account-based system offers. This fare equipment has more than outlived its life expectancy (since 2002) and will need to be replaced in order to continue the security necessary to interact with modern mobile devices and keep our passengers’ information safe. Staff will report back to the Board in the coming months.
TAP will also continue to actively work along with other major cities on nationwide efforts toward open payment, and banking and credit card regulations that are favorable for transit customers.
Prepared_by
Prepared by: Robin O’Hara, Deputy Executive Officer, (213) 922-2411
David Sutton, Executive Officer, (213) 922-5633
Reviewed_By
Reviewed by: Nalini Ahuja, Chief Financial Officer, (213) 922-3088
