File #: 2017-0775   
Type: Informational Report Status: Agenda Ready
File created: 11/3/2017 In control: Ad Hoc Customer Experience Committee
On agenda: 11/16/2017 Final action:
Title: RECEIVE AND FILE update on TAP Regional Integration.
Sponsors: Finance, Budget and Audit Committee
Indexes: Budgeting, Eric Garcetti, Informational Report, Payment, Subsidies, Ticket vending machines, Transfer on 2nd Boarding, Transit System, Vehicle sharing
Attachments: 1. ATTACHMENT A: Timeline for TAP Account-Based Functions.pdf, 2. ATTACHMENT B: TAP Regional Mobility Account.pdf

Meeting_Body

AD HOC CUSTOMER EXPERIENCE COMMITTEE

NOVEMBER 16, 2017

 

Subject

SUBJECT:                     TAP REGIONAL INTEGRATION UPDATE

 

Action

ACTION:                     RECEIVE AND FILE

 

Heading

RECOMMENDATION

 

Title

RECEIVE AND FILE update on TAP Regional Integration.

 

Issue
ISSUE

Metro Board Chair Garcetti requested an update on TAP regional integration, including 1) update on enabling TAP to be used to pay for bikeshare and other account-based programs; 2) update on the TAP mobile app; 3) update on any plans to expand TAP to be able to pay for things beyond transit fare (as exampled by Hong Kong’s Octopus card and; 4) next steps for TAP.

 

Discussion
DISCUSSION

TAP has been busy over the past year building the architecture for a new account-based hybrid system that will work together with our regional transit system. This new hybrid system is an innovation for transit, in that it works together with our existing card-based system to offer additional payment connectivity to programs other than transit.

 

Enabling TAP for Bike Share and Other Account-Based Programs

TAP has been working for the past year to build the architecture of integration so that many programs, including Bike Share can integrate with TAP payment. The Metro Bike Share team, the Bike Share Vendors and Salesforce Integrators have been working together to integrate payment options so that connections for payment from a TAP account will be available by next summer, 2018 (See ATTACHMENT A, Timeline for TAP Account-Based Functions). Other programs will also be able to take advantage of the same connections, once built, with minimal integration challenges. This would enable other multi-modal integration with Fare Subsidy Programs such as LIFE (formerly Rider Relief Transportation Program), parking services, electric vehicle car sharing, last mile services and many more.

 

TAP Mobile App

While the architecture must be finished for the TAP account-based payment system in order for the TAP App to be released, TAP is nonetheless working in parallel on the regional Mobile App. The App will feature some innovative functions that have not been seen yet in the transit space. The TAP App will feature the ability to use a phone’s Near Field Communication (NFC) abilities to act like a ticket vending machine to tap and load a card in Phase 1. In Phase 2, the phone will act like a TAP card itself, and will be able to be recognized the same as the customer’s TAP card at faregates and other fare equipment. Android devices have this ability turned on now, and Apple is expected to have these abilities turned on in the near future. The app is planned to have multiple functions and will offer a number of customized, customer-friendly options that are not available in off-the-shelf transit apps. The app’s options include:

 

                     Ability to load a card by tapping your phone in Phase 1

                     Ability to use phone as TAP card in Phase 2

                     Flash pass and bar code abilities for events such as pro sports games, entertainment, concerts and more

                     Integration with any account-based programs such as Bikeshare, Fare Subsidy Programs, electric vehicle car-share, last mile options, Expresslanes and more

                     Next-bus and Next-rail arrival information

                     Trip-planner

                     Rewards

                     Discounts

                     TAP vendor locator

                     Notifications and alerts

                     Shared revenue model for advertising

                     Options for cash payment

 

Plans to Expand TAP Ability for Payment Beyond Transit

Board Chair Garcetti requested a report on TAP’s possibilities to act like the Octopus card from Hong Kong’s transit system. The Octopus card also works in retail chains and restaurants. Hong Kong is very nimble and has a government that can mandate retail integration. The US retail system is currently not compatible with the Octopus concept, however, we are building our system so that future open payment may be easily adapted. TAP is working alongside New York, San Francisco, Chicago and other major transit agencies in a joint effort to lobby the major credit card companies and banks to be more flexible with payment for transit. This would include chip-based cards that will enable fast transit payment and entry onto buses and trains.

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 over the next year. This system will interface with numerous programs, and provide unified customer service and one simple account to pay for multiple programs. The new, flexible system will provide discounts across programs, offer customizable rewards, incentivize behaviors, offer event partnering capabilities and feature multiple modern account loading choices. The system also enables the unbanked to participate in programs in which they were unable to participate in the past. Additional TAP initiatives that are ongoing are Transfer on 2nd boarding, retail TAP gift cards, addition of Stored Value purchase on bus, token transition to TAP, TAP wearables, Regional TVMs, TVM screen upgrades and other equipment upgrades. TAP will continue to actively work along with other major cities on nationwide efforts toward open payment, banking and credit card regulations that are favorable for transit customers.

 

...Attachments

ATTACHMENTS

 

Attachment A - Timeline for TAP Account-Based Functions

Attachment B - TAP Regional Mobility Account (Presentation)

 

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