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

Solution: Speacq has proven fraud prevention technology and patents, many of which are 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 significant savings with bankcards rather than manufacturing their own transit cards. Riders pass through transit gates or board buses without extracting their 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 Bankcard Acceptance

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
• Offers the ultimate interoperability
• Can be combined with related operations like tolls, parking, etc.

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

Retailers and financial institutions also have an opportunity to partner with transit operators and provide the consumer with a payment card for goods and services such as snacks, bridge tolls, parking fees, or food outlets located near public transit stations. Pilot projects in the United States and implementations of similar programs elsewhere indicate that consumers welcome such multi-application payment cards, perceiving them as convenient and cost-effective.

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 bankcards issued by eight banks make 7 million transactions daily.