Smart Card Technology Coming of Age for Bus Operators

As greater numbers of regional transportation programs across the U.S. are adopting smart card systems as their fare media platform, questions about the technology’s feasibility for independent bus operators have also emerged.  The September issue of Bus Ride Magazine explored this topic in the article “Farewell to Tokens,“ which featured an interview with Cubic’s Western Regional Director of Sales Mark Kroncke.  His contribution is captured in the following Q&A with editor Maria Jolly. 

  Q.  What smart card bus contracts does Cubic currently have?
  A.  Cubic provides smart cards for buses as a component of a wider regional system.

Current bus smart card installations include the Metrobus system operated by the Washington Metropolitan Area Transit Authority (WMATA), which serves the Washington, D.C. area; the Transport for London fleet of buses; and buses covered under our  contract with the Metropolitan Council in Minneapolis/St. Paul, Minnesota.

We are also involved in bus smart card pilot programs in San Diego, Los Angeles and Long Beach.

In addition, a list of the U.S. geographical areas where we have ongoing bus smart card efforts includes the  following:

• San Diego City and County: Metropolitan Transit System and North County Transit District
• Los Angeles County: City of Los Angeles Department of Transportation, Foothill Transit, Long Beach Transit, Norwalk Transit, Culver City   Bus, Santa Clarita Transit, City of Torrance, Antelope Valley Transit Authority, City of Montebello, City of Long Beach, City of Gardena.
• Chicago:  Chicago Transit Authority
• Atlanta: Metropolitan Atlanta Rapid Transit Authority (MARTA)
• Baltimore/Maryland Transit Administration

The largest of our international smart card bus system contracts is for Transport for London.  Cubic also has a pilot program in Brisbane, Australia, that includes a bus operator that is part of the regional smart card system for the Queensland region.

  Q.  What are the benefits of smart cards compared to magnetic-stripe cards?
  A.  Smart cards have the memory capability to handle more data including important customer usage information, which helps bus system operators know how to adjust vehicle schedules to better accommodate peak and off-peak usage, etc.

With credit/debit payment capability, smart cards reduce reliance on cash. From the operator's standpoint, cash is very expensive to deal with from a security and handling aspect. From the bus driver and passenger's point of view, the passenger doesn't need exact change to board the bus.

In addition, the greater data capacity means that the card can support other applications in addition to transit fare payment, e.g., electronic transit benefits, event ticketing, retail, building access, and  — a critical feature in these times — biometric data (fingerprints, facial recognition, etc.) in support of transport safety initiatives. 

Most importantly, smart cards offer greater convenience for passengers, e.g., speed of throughput. A contactless smart card takes less than 100 milliseconds to process compared to 1.5 to 2 seconds for a magnetic ticket that has to be inserted into a ticket processing unit. This means faster boarding times and less dwell time for the bus.  In addition, smart cards are easier to use for those with limited dexterity.

In summary, smart card technology is the most versatile platform for connecting multiple transit operators with disparate fare policies into a single regional system.  Smart cards offer lower operating costs to the operators over time, once the capital-intensive deployment of the infrastructure is in place, because maintenance costs are so greatly reduced; for example, contactless smart card processing devices require no moving parts or heads to clean and the cards themselves last longer than their magnetic counterparts.

  Q.  Does Cubic have any smart card bus installations for smart cards only, i.e., no cash?
  A.  Transport for London.

  Q.  How do smart cards work?
  A.  The way smart cards work on a bus can vary from operator to operator depending on whether they are zone, distance or flat-fee based. If a flat fee, then the fare is deducted at the point of entry. If zone or distance based, then the rider "tags on" at the point of entry - i.e., touches the card to some sort of a reader (e.g., the Cubic Light Validator) and then "tags off" when leaving the bus. In the latter case, there can be multiple readers on the bus depending on how many doors/access points there are to board and deboard. The best part of smart cards for the patrons is that all they have to do is “tag” the readers in the proper fashion, for example while boarding only or while boarding and exiting, and the rest is handled by the system. They no longer have to say "I'm in Zone 1 and I'm going to Zone 3 so that's an extra $1.45 on top of the base fare of $.75, so that's $1.45 + .75 = $2.20."  Instead, you get on, tell your zone and tag your card.

  Q.  How do smart cards help to track revenues and generate reports? 
  A.  Smart cards are a storage device. It is the system behind them that tracks revenues and generates reports.  A smart card reader like Cubic's Tri-Reader® is installed on the bus, either at the farebox or at a validator. The reader takes the data off the smart card, and uploads it to  the garage depot computer at the end of the bus's run for the day, or some other predetermined interval. The garage depot computer is networked to the Central Computer System, which is configured to generate specific reports, for instance, number of transactions,          ridership data and other information that helps facilitate efficient management of revenue and resources.  

In the case of systems that have direct constant communication, such as on rail line stations or in sales terminal offices, the data is sent in real time to the Central Computer and can be accessed and reported immediately. Buses are different just because they are on the streets for some time, and out of range of inexpensive communication. However, as cities move to WLAN (wireless LAN), as some smaller cities are piloting, buses will be able to provide real-time passenger information, which can also be tied to security.

  Q.  Is it possible for smaller cities to use smart technology, or is the cost prohibitive?  
  A.  Yes, smaller cities can use smart card-based systems.  Minneapolis is either close to, or has undergone system acceptance of its new smart card-based system for light rail and bus. For smaller cities that are potential partners in a larger regional system, the incentive is there to invest in a smart card system, number one, because their purchase cost can be affected by economies of scale where there are multiple participants, and number two, because it enhances the customer convenience of their own system, which can lead to higher ridership. 

Although the initial costs can seem expensive, these are 10-15-20 year systems with tremendous technology built in that allows for growth during that time frame. For example, compare a full-up automated system that costs an additional $10 million to install to an inexpensive cash/paper system designed for a medium-sized city. The cash/paper system might have maintenance costs, cash handling and system fraud that cost the agency $2 million to $3 million a year. A smart card-based system pays for itself long before the end of the life of the system, and this does not include other enhancements that are easily added on to an automated system. 

In addition, there are "customer service" benefits to allowing an easy payment method for your patrons. If a small to mid-sized city is in the vicinity of a larger automated fare collection system, then joining into the larger system is simple and inexpensive. For example, the small city of Montebello has 80 buses, yet they have joined onto the Los Angeles smart card program by simply purchasing equipment with smart card readers and a server for their own data on the L.A. Regional Central Computer. 

In larger systems such as Washington, D.C., Los Angeles, San Diego and London, they have all been designed to allow "regionalization" thus making it possible for surrounding small- and mid-sized cities to join into a regional program.  Once they have joined into these systems, then the real winners are the patrons. Imagine that very soon in Southern California with your smart card it may be possible to get onto a bus at the University Town Center shopping center in La Jolla, take the bus to the Coaster, ride the Coaster to Oceanside, take Metrolink to Union Station LA, catch the Red line to Hollywood for lunch, board a Metro Rapid Transit Bus to Beverly Hills for shopping, take a Santa Monica bus to LAX and take the Green Line back to Union Station, then transfer to Amtrak to ride back to San Diego, then take a bus back to University Town Center — all on one card recognized throughout the region. All of the fare settlement is handled in the back end and out-of-sight, out-of-mind for the patron.