Regional Transportation Commission of
Washoe County
Smart Phone Fare Payment
Ed Park
Transit Planner
Smart Phone Fare Payment
Smart Phones vs Smart Cards
Smart Phone Fare Payment
Smart Cards
Pros:
 Reloadable
 Fast boarding
 Can purchase with cash
Cons:
 High upfront cost for vending machines and readers
 High upfront cost for card for users (works against tourists or one-time
system users)
 If you lose the card, the entire stored value is lost
Smart Phone Fare Payment
Smart Phone Fare Payment
Pros:
 Reloadable
 Fast boarding
 Retains bus tickets if phone lost or stolen
Cons:
 Requires smart phone
 Cannot make purchase with cash
 Requires WiFi or Internet phone plan to activate ticket
Smart Phone Fare Payment
Considerations
 Pilot Program vs competitive Request for Proposal (RFP)
 Cost comparisons with existing fare media (include the cost of magnetic pass
printing, vending machine and farebox maintenance, telephone fees for
vending machine access, money room collection costs, etc.)
 Flash Ticket vs Barcode Scanner
 Relatively new to transit (costs will come down with competition)
 Three types of fees:



Flat monthly fee
Percentage of revenue
Flat monthly fee if percentage of revenue does not meet a certain amount
 Who pays for credit card transaction fees?

Are credit card transactions under $2 worth the additional fees?
 Should be available in both iPhone and Android
Smart Phone Fare Payment
Considerations (continued)
 Work out who is liable in case customer’s information is stolen
 Work out which customer issues should go to the transit agency and which
to the app provider
 Work out what the administrative portal/dashboard will include (e.g., user
type, fare type, aggregated GPS locations, etc.)
 Work out what kind of promotions, material, and advertising the transit
agency will provide versus the app provider
Smart Phone Fare Payment
Considerations (continued)
 Agreement to honor passes beyond the expiration date of the contract
with the app provider
 Reduced fare categories should have a notice about what ID is valid when
used
 Spanish language version
 Allow for multiple ticket purchases
 Allow users to add or delete credit cards from their account
Smart Phone Fare Payment
Lessons Learned
 How to treat a one-ride ticket?
 Option A: Purchase a one-ride ticket and get a transfer from the driver
 Option B: If a transfer is 90 minutes, instead of a one-ride ticket, offer a 90-minute ticket
 In the beginning, coach operators should err on the side of the customer.
 If your system offers a free ride day or free ride for a portion of the day,
smart phone users should be notified before activating their ticket
 Create an option to send a ticket to someone’s phone
 Parents don’t have to worry about kids use of their credit card
 Social service agencies can send tickets to a client’s phone instead of ordering magnetic
passes in the mail
 Beta testing on employees and then volunteer bus riders for a discount
 Initial discount to lure riders
Smart Phone Fare Payment
Lessons Learned (continued)
 Involve all your departments early on especially Finance, Customer
Service, and the Contract Bus Operator
 While many transit users have smart phones (as their primary access to
the Internet), many have never downloaded or used an app. Many will
need to be trained.
 Many transit users are not as savvy with smart phones and may not have
the most recent operating software on their phones.
 Many transit users do not have Internet phone plans (or sufficient plans)
and rely mostly on free WiFi for Internet access.
 Some transit users have social service debit cards (e.g., Wage Works) that
cannot be used for purchasing tickets on an app.
Smart Phone Fare Payment
Capping
 Often times transit riders will purchase 7-day passes, because they cannot
afford 31-day or monthly passes. As a result, they wind up paying more
each month to ride the bus than those who can afford the 31-day/monthly
pass up front. This is not fair and a regressive fee structure.
 Smart Phone Fare Payment will eventually allow capping. This means that
once a rider has spent the equivalent of a 31-day pass within a 31-day
period, they get to ride free the remainder of the 31 days.
Smart Phone Fare Payment
Thank you