Open Payments – A Big Hit in the Big Apple

People entering turnstiles at a train station

The Metropolitan Transportation Authority (MTA) has taken a giant leap forward in modernizing the way New Yorkers and visitors pay for their daily commutes with the introduction of OMNY (One Metro New York). OMNY, a contactless fare payment system, is not just another technological upgrade; it’s a game-changer that promises to revolutionize the way people travel in the Big Apple. OMNY was officially launched in May 2019, starting with a limited pilot program of the Open Payments system to accept physical bank cards and bank cards on mobile Pays on select subway lines and buses. The system’s initial introduction was met with anticipation and excitement, as commuters eagerly embraced the prospect of a more convenient and efficient payment method. Since then, the adoption of Open Payments has been nothing short of impressive.

The system had been deployed on all subway lines and buses in New York City. Commuters across the five boroughs now have easy access to the OMNY readers, ensuring a seamless travel experience, and the MTA has been working on expanding the reach of OMNY as it has started to distribute its closed-loop OMNY cards in retail locations. Just last month, the Roosevelt Island Tramway joined the tap-and-go system and became the first non-MTA operated entity to participate in OMNY. AirTrain JFK will start accepting OMNY’s contactless payments starting 10 October.

The MTA recently reported that approximately 67% of full-fare riders have made the switch from MetroCard to OMNY. Considering the delay in rolling out the OMNY Vending Machines, this figure appears to indicate that overall, the Open Payments system is a big hit. Evidence of this can be seen in OMNY reaching its 1-billion-tap milestone this summer. This is even more impressive considering they reached this milestone five months quicker than the TfL did (in spite of the ridership impacts brought on by the pandemic).

Why is Open Payments so successful for the MTA? Is it just because of the Wall Street executives who ride MTA? Or is it because the agency made a choice to offer Open Payments as the first phase of their new fare payment system, have been marketing it on every bus, subway car and vending machine and have been enhancing the offering with features like fare capping?

If you’re attending the APTA TRANSform conference in Orlando, find Lawrence and Simon who both worked on the OMNY project, and ask us for our thoughts. We would love to chat with you about it!

Cover art: Marc A. Hermann / MTA

Transport Ticketing Global – another fantastic year!

The Transport Ticketing Global conference in London two weeks ago was a real treat. A big shout-out to the staff at Clarion Events who organized it. All of the speakers were first rate and provided the attendees an opportunity to learn  lessons from experts, all over the world. One example was Sindi Msibi of ICT-Works in Johannesburg, South Africa. She spoke about the challenges they face with load-sharing the servers that run their system as they have rolling blackouts. Some areas will have no electricity for six hours per day. Their system performance is extremely important as their riders spend 40% of their income on transport versus 14% for the EU.

Many of the sessions at TTG focused on Account-Based Ticketing (ABT) systems, including a panel that I led on Successful ABT Implementations. The main lessons that I learned from this session were:

Implementing an ABT system is a journey. Many agencies procure a new ABT fare collection system and think – “Oh boy! I just need to turn this thing on and all of my problems are solved!” That’s not the case. Your riders have many different needs. The good news is that ABT systems can provide you the means to fulfill those needs, but it takes time. My panelists spoke honestly about where they are on that journey, and many were years in and still not done.

Not all ABT systems are equal. There were many vendors with booths that touted that they offered ABT systems. However, a fare collection system can be complicated and has many touchpoints both inside the agency and outside to your riders. It’s important to be sure you procure a system that is mature enough to meet your needs. This is why getting references from similar-sized agencies is important, and a good consultant can provide guidance about the difference between what PowerPoint slides say and the reality of what vendors have done.

To have a successful system, you have to analyze and update your business processes. My first job in transit was as a web developer at DART (Dallas, TX) working on our corporate intranet. Our boss insisted that we not just “web-ulize” their current paper processes but improve them. To get the most out of your new fare collection system, analyze your internal processes and ensure that you take advantage of the capabilities that your new ABT system offers your agency by considering the needs of your Revenue, Finance, Planning, Customer Service and Marketing departments.

And speaking of change, I would be remiss if I did not mention one of the best sessions of the conference titled Ticketing & Fares – Time to Retire. James Bain of Worldline made a great case for retiring the ticket and moving towards a subscription model that many other industries like Netflix and Spotify have successfully implemented. It really made me think hard about some of the basic assumptions I hold.

The final point I wanted to bring up is that I heard many people talk about Open Payment projects. Despite highly successful implementations in London and New York, there are still many misconceptions about this technology. One statement that I heard a few times at TTG was how Open Payments is only for tourists. As a New Yorker who regularly rides MTA and uses my American Express card in my Google Wallet (Thanks Jonathan Hill!) to pay my fare, I think it’s the best way to pay. After all, it’s how I pay for everything else I do in my daily life. I think many people are selling short the convenience that Open Payment brings for ALL riders. I hope they’ll rethink some of their assumptions.

For over 15 years Consult Hyperion has been advising transit agencies/authorities the world over. We have a deep understanding of the challenges in a successful implementation of ABT and Open Payment systems. Want to know more? Reach out to Simon Laker or myself to learn more at info@chyp.com.

ABT – the opportunities of transitioning

Osmodal Group’s Mick Spiers and Consult Hyperion’s Lawrence Sutton consider the benefits of Card-Based to Account Based ticketing (ABT) and determine factors to consider with transition

New Features Greet Riders As They Return to Transit

people walking on train station

Everyone seems to think that MaaS (Mobility-as-a-Service) is a brand-new business model, when in fact, Transit Agencies have been providing mobility as a service for years, just without the hyphens. When I ride transit I just pay for the service when I need it or purchase a monthly pass if I expect to use it regularly. This is similar to the “as-a-Service” model that has been popularized by software companies who moved away from the license model where users pay a one-time fee to purchase the software. They now offer a subscription model where users pay a recurring fee to use the software. I’ve ridden transit for many years and have never had to buy a bus or train. Sounds like Mobility-as-a-Service to me.

Will 2022 start to drive the future of Interoperability and Inclusion?

close up shot of a calendar

Our overriding theme of this year’s Live5 is interoperability which will lead to inclusion. Whether this is in payments or transit, identity or as a generalised trend what we’re seeing is a collapsing of the barriers between silos. In some areas this is happening more quickly than in others.

Payments are hard. That’s why the world’s leading payment organisations come to us.

How the past (ticketing technology) can still be relevant in the future.

blurred motion of illuminated railroad station in city

Last week, I attended the excellent Transport Ticketing Digital Summit which focused on advances in fare collection and Mobility as a Service (MaaS).


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