Southeast Asia deploys advanced automated fare collection systems-

In Southeast Asia, there is emphasis on the deployment of advanced and interoperable automated fare collection (AFC) systems such as smartcards and near-field communication (NFC)-enabled devices to increase both the efficiency of transport systems and ridership by giving commuters a smooth travel experience. Cities with upcoming systems are installing such systems to avoid additional costs at a later stage and cities with legacy systems are upgrading AFC systems because many of the latest offerings in the market are smart and cost-effective.

Existing systems

Cities such as Singapore and Kuala Lumpur have fully implemented AFC systems in the region and cities such as Bangkok, Hanoi, Jakarta and Manila have a hybrid fare collection system, utilising both paper tickets and smartcards.

Mobile ticketing based on NFC technology is gaining prominence and several cities use this technology. These include Bangkok, Jakarta, Manila and Singapore. Mobile ticketing through SMS is not common in the region. Other advanced fare collection systems are also being introduced. For instance, Jakarta has deployed wristbands on the TransJakarta bus rapid transit (BRT) system.

Integration and interoperability

Many cities in the region with multiple operators have integration across modes and operators. Cities with multimodal and multi-operator integration include Jakarta, Manila, Singapore and Bangkok. Kuala Lumpur has integrated ticketing for multiple modes with a single operator.

Singapore – A case in point

Singapore successfully transitioned from magnetic-stripe tickets used in the 1990s to a contactless interoperable smartcard system in December 2008. The current system is multi-purpose, multi-issuer and interoperable. Contactless smartcards, bankcards and NETS FlashPay are used for fare collection. All three forms are accepted on all public transport modes.

The smartcard, Enhanced Integrated Fare System (EIFS), was rolled out in April 2002. Currently, it is issued by EZ-Link Private Limited, NETS and Transit Link Private Limited.

Primarily, two types of smartcards are used for fare collection on public transit – EZ-Link and NETS. Both systems deploy Symphony for e-Payment (SeP), an enhanced ticketing system based on open standards and allowing multiple card managers.

The SeP system was built on the Singapore Standard for the Contactless ePurse Application (CEPAS) system.

The EZ-Link is based on Japan-based Sony’s FeliCa technology. It is a single, multi-purpose, stored-value contactless card that can be used for fare payment, small-value retail purchases, taxis and parking.

In August 2003, EZ-Link Private Limited and Visa Asia Pacific introduced the Bank Card scheme that linked the EZ-Link card to a customer’s credit or debit card for automatic top-up. In April 2006, EZ-Link Private Limited signed an agreement with Visa Asia Pacific and QB Private Limited giving Visa exclusive rights to embed EZ-Link functionality in Visa credit, debit and prepaid cards in Singapore.

In May 2012, EZ-Link, in partnership with mobile phone operator M1 and MasterCard Worldwide, combined payments of public transit, retail and mobile recharge with the launch of the multi-purpose card, M1 Prepaid MasterCard. The card rewards spending with airtime.

Opportunities

  • Cities such as Bangkok and Kuala Lumpur are planning citywide integration of fare collection systems amongst modes. In cities where new metro rail, light rail transit (LRT) or BRT systems are being developed, the focus is on the deployment of contactless smartcards. These include cities such as Hanoi and Ho Chi Minh City.
  • Cities with advanced fare collection systems are looking to move to the next level of technology deployment. For instance, Singapore’s Land Transport Authority (LTA) has announced plans to transform its existing contactless NFC system into a completely hands-free operation. In addition, LTA, in partnership with Singapore-based telecommunications company SingTel, Japan-based Sony, EZ-Link, NETS and TransitLink, has launched a trial of SG50 SmartBands encoded with a digital CEPAS card and Singtel mobile wallet app for fare payment and retail transactions. The band can be topped up like a smartcard and can connect with SingTel’s mobile wallet app using Bluetooth.

Recent developments

The following developments were recorded in September 2016:

  • In the Philippines, AF Payments Incorporated announced plans to install the tap-and-go Beep payment system in point-to-point (P2P) buses operated by RRCG Transport on the route from Alabang Town Center (ATC) to Greenbelt 1 (Makati City) after a successful trial run in Manila. The Beep card is accepted on all three elevated railways (LRT 1, LRT 2 and Mass Rapid Transit [MRT] 3), selected bus lines and the Cavite Expressway.
  • Malaysia’s Mass Rapid Transit Corporation awarded an MYR 152.9 million contract to a consortium of Spanish-based Indra Sistemas SA (80 per cent) and Malaysia-based Rasma Corporation (20 per cent) to supply an AFC system for Line 2 of the Klang Valley MRT system.

The following developments were recorded in Singapore in the past six months:

  • In July 2016, LTA and MasterCard signed a contract agreement to launch a pilot for an account-based ticketing system by end-2016. The system will enable commuters to pay fares on the metro and buses using contactless debit or credit cards. The fare history and journey can be tracked through a web portal or via a mobile app. In addition, LTA has plans to introduce contactless payment via mobile phones in the future.
  • In April 2016, LTA, the Infocomm Development Authority of Singapore, and EZ-Link launched the use of mobile phones equipped with NFC technology for public transport payments. The trial ended in February 2016 and involved testing of 15 NFC-enabled mobile phone models with the new NFC SIM. It recorded more than 30,000 transactions by 1,000 users. The new system allows payments on MRT, LRT and public buses; more than 30,000 EZ-link acceptance points for retail, food and beverage purchases; and taxis. The users can also check their account balance, transaction history and top-up value using the EZ-Link mobile application. Netherlands-based Gemalto will supply the UpTeq Multi-Tenant NFC SIMs for the roll-out of the service.

Conclusion

Deployment of advanced fare collection systems is gaining popularity across the world as they provide users with convenience and transit agencies with the benefits of reduced capital and operating costs, improved fare flexibility, increased revenues, and opportunities for interoperability and scalability. Over the last decade, there is greater awareness in the region that a strong public transit system is a necessity for economic growth and the sustainable development of cities, and that an advanced fare collection system is a key component for the delivery of high performance public transport systems. As governments seek a higher quality of life for residents and an increased ability to compete effectively, they realise the value an effective fare collection system can bring to achieving their goals.