Contactless Smart Cards, RFID, Payment, Transit and Security

Smart Card Alliance Transportation Council announces first year successes, upcoming initiatives

Tuesday, March 14, 2006

High member participation, including membership from the top ten U.S. transit agencies, and production of its smart card and parking white paper, were two of the accomplishments of the Smart Card Alliance’s Transportation Council during its first year. The council, which seeks to promote interoperable contactless smart card payment systems for transit services, also announced the election of its new chair and board members.


PRINCETON JUNCTION–The Smart Card Alliance Transportation Council has announced its first year results, upcoming project plans and new officers, including its new Chair, Paul Korczak from MTA New York City Transit. A focused group within the overall structure of the Alliance, the Transportation Council works to help accelerate the deployment of standards-based smart card payment programs within the transportation industry.

First year Council participation exceeded expectations, including ten top tier U.S. transit agencies. In addition to transit agencies, the Council’s 43 members represent a cross-section of the industry, including chip and card suppliers, transportation system suppliers, systems integrators and financial services providers.

New members joining the Alliance and participating in the Transportation Council include ACS, Massachusetts Bay Transportation Authority, METRO – Southwest Ohio Regional Transit Authority, San Francisco Bay Area Metropolitan Transportation Commission, Metropolitan Transportation Authority Bridges and Tunnels, MTA New York City Transit, Port Authority of New York and New Jersey, Parcxmart, PBS&J, PepperCoin, Scheidt & Bachmann, TransitCenter, Tri-County Metropolitan Transportation District of Oregon (TriMet) and the Utah Transit Authority.

“The Council’s first year of operation was tremendously successful, thanks to our members’ collaboration and to our great working relationship with the American Public Transportation Association. The Council has been able to move forward with projects that look at how to bring smart card-based payments to the public in different transportation segments,” said Randy Vanderhoof, executive director of the Alliance.

The Council’s first major accomplishment was publishing the white paper, Smart Cards and Parking, available at www.smartcardalliance.org. The white paper attracted broad Council member participation and includes extensive industry information on the use of smart cards in both parking and transit.

“The high level of participation in the Council and the excitement around its projects this year really illustrate that the transportation industry is serious about accelerating the use of smart cards for payments across the many modes of transportation and transportation-related services. It was great to be able to work as chair to lay the groundwork for this Council and to help further the progress of this technology in this market,” said Greg Garback, executive officer, department of finance, Washington Metropolitan Area Transportation Authority (WMATA) and the exiting co-chair of the Council.

The Council elected new officers and steering committee representatives in February.

New Transportation Council officers are: –Chair: Paul Korczak, MTA New York City Transit –Vice Chair, Transit: Chris Cipperly, WMATA –Vice Chair, Parking: David deKozan, Cubic Transportation Systems

New steering committee representatives are: –Willy Dommen, Booz Allen Hamilton –Michael Laezza, ERG Group –Ashi Majid, Infineon Technologies –Tomas Oliva, TriMet –Tim Weisenberger, U.S. Department of Transportation/Volpe Center –Bob Wilberger, Northrop Grumman Corporation

Also elected and serving in a non-voting, advisory capacity are: –Mike Dinning, U.S. Department of Transportation/Volpe Center –Greg Garback, WMATA –Martin Schroeder, American Public Transportation Association

“This is an important time for the transportation industry, as business cases for expanded use of contactless smart cards in both transit and in banking are emerging. In large part, the impetus comes from a market-driven business interest to address micropayments,” said Paul Korczak, assistant chief officer, MetroCard Sales Operations, MTA New York City Transit and incoming chair. “As such, this year will be an important time for the Transportation Council to work on projects that look at how, in the context of emerging business cases, a broad interest in open, interoperable system solutions can be joined with advances in contactless smart card technology to improve customer service and the cost effectiveness of transit fare payment.”

Council priorities for 2006 include: –Exploring linkages between transit payment and new contactless financial payment approaches. –Collaborating with the APTA Universal Transit Farecard Standards Taskforce to examine the need for a security specification for the UTFS standard for transportation electronic payment systems. –Expanding on parking activities of the past year to engage with organizations deploying parking payment solutions and to discuss linkages between existing transit payment approaches and parking payment systems. –Developing a white paper describing multi-use vs. multi-application cards for transit payment.

The Transportation Council is open to participation from any organization that joins the Alliance and the Council. For more information, please visit www.smartcardalliance.org.

About the Transportation Council The Smart Card Alliance Transportation Council is focused on promoting the adoption of interoperable contactless smart card payment systems for transit and other transportation services. Formed in association with the American Public Transportation Association (APTA), the Council is engaged in projects that support applications of smart card use. The overall goal of the Transportation Council is to help accelerate the deployment of standards-based smart card payment programs within the transportation industry.

About the Smart Card Alliance The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology. Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America. For more information please visit www.smartcardalliance.org[end] 

The Smart Card Alliance Transportation Council has published a white paper examining how the transit industry can best make use of NFC technology.

“One of the major challenges facing transit agencies today is how to capitalize on the ever-growing popularity of mobile phones with a solid mobile strategy,” said Transportation Council Chairman Craig Roberts. “This white paper builds on the knowledge base developed in earlier white papers to foster a greater understanding of NFC technology, explain its role in the transit industry, and shed light on key issues facing the transit industry in developing a mobile strategy.”

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To commemorate the smart card industry’s achievements throughout 2011, the Smart Card Alliance has decided to release its first-ever E-Yearbook.

The nearly 70-page e-book discusses the year’s leadership and advancement in the smart card industry and highlights industry achievements.

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Cubic Transportation Systems, distributor of the electronic transit Clipper card, has responded to the recent news of a Ph.D. student in IT Security allegedly breaking the encryption in Clipper and similar transit cards.

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Global Industry Analysts Inc. released a report forecasting the outlook on the global smart card market to reach 10.9 billion units by 2015.

GIA credits the growth driven largely by major initiatives in the financial, government and security sectors, with the telecom sector at the way ahead of the pack as the largest end-user. Increasing usage of contactless technology, newer applications and mandatory EMV migration across countries are also major drivers boosting the global market for smart cards.

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The Somerset County Council, UK is planning to introduce a new smart card ticketing system, according to The Guardian.

Designed to maintain an efficient and more convenient service for passengers, the new ticketing system will not only speed up boarding times but also enable the council and bus companies to electronically log and track patrons’ trips. Drivers will no longer have to issue paper tickets.

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The Smart Card Alliance Transportation Council has introduced a series of educational resources on open payments solutions in public transit systems, including a white paper, Web resources and LinkedIn group for industry professionals.

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