Cubic Pioneers Smart Cards In North America

International Railway Journal, Feb, 2000 by David De Kozan

Cubic is pioneering the introduction of contactless smart cards in North America. It also has projects underway or planned in six other cities around the world.

OPERATORS in Washington DC and Chicago now have the infrastructure, including readers and software, installed to process contactless smart cards. In May last year, Washington Metropolitan Area Transit Authority (WMATA) began the phased introduction of what they have branded the SmarTrip card. This represents the launch of smart card travel in North America.

WMATA had issued about 60,000 contactless cards to the public by the end of December despite very limited marketing. These cards are being sold predominately through three metro-operated sales outlets and over the internet. The cards are honoured at all metro stations and park-and-ride facilities. Value loads are facilitated through specially equipped ticket machines that accept currency, and credit and debit cards for payment.

This spring, First Union Bank will issue 1500 multi-application cards in a field trial. They will provide both transit and conventional debit card functions. This will be the first transit-enabled multiple-application smart card issued by a bank in the United States.

Cubic also has received a contract from WMATA to enhance the smart card system to offer a variety of electronic benefits under a project called SMARTBenefits. The most significant is called Metrochek, whereby employers can distribute federally-subsidised transit benefits to their employees. With the expansion of SmarTrip, these benefits will be distributed electronically through the Cubic system to the smart cards and accepted regionally by all participating transit operators.

Last year, Chicago Transit Authority (CTA) and Pace, a suburban bus authority, introduced 20,000 contactless smart cards through a variety of field demonstrations and employee schemes. The most important occurred during the CardTech SecurTech Conference in April, the largest card technology show of the year, when more than 11,000 hybrid contact-contactless cards were issued to conference delegates. Not only were the cards used for conference registration and electronic purse functions, but they were also capable of being used throughout the CTA and Pace rail and bus networks. The cards remained live for 90 days after the conference, enabling the operators to witness a controlled launch. CTA and Pace now have to establish their goals for using smart cards. A system-wide launch is anticipated during the coming 18 months. All CTA rail devices plus 3300 CTA and Pace buses are equipped for smart card implementation.

In early 1999, Shanghai Metro introduced a new Cubic automated fare collection system. In the first 90 days of operation, it handled 1,000,000 magnetic tickets and 100,000 contactless smart cards using Philips Mifare technology. Since then, smart card sales have been restricted while the local government resolves card supplier issues. However, the initial sales demonstrated high passenger response to both the magnetic tickets and smart card technologies. This dual architecture gives the Shanghai Metro the flexibility to promote single-journey travel for occasional riders using magnetic tickets, and accommodate commuters using smart cards. The AFC system is designed to eventually include intermodal applications such as bus-to-commuter train or commuter train-to-mainline rail travel. The Shanghai AFC system is being expanded for Phase I of Line 2, which was due to start trial revenue service in January.

Cubic's new AFC system for the Guangzhou Metro has recently undergone final system acceptance. While initially designed for magnetic tickets, a Go Card trial using metro staff is underway.

New York City Transit (NYCT) has the largest stored value transaction system in the world. While NYCT's MetroCard is magnetic stripe based, it is similar to a smart card system in that it can be audited and tracked, and there is a stored value model using reloadable cards. More than 6 million stored value transactions are being processed every day across nine independent operators. MetroCard now accounts for more than 80% of all transactions. It covers the subway and buses. There are over 10,000 terminals plus a network of 3800 merchants distributing pre-valued cards. A broad array of fare incentives has been implemented with the card, and the result has been an astounding success in market capture.

Last year Cubic began deploying 1500 touch screen automated vending machines which accept cash as well as credit and debit cards to both sell and reload cards. Cubic will also deploy 1000 MetroCard refill machines which will accept only credit and debit cards for payment. These will be fitted with both contact and contactless smart card readers. Every NYCT device has been installed with the ability to accept a smart card retrofit kit to enable NYCT to switch over to smart cards in the future.

London's ambitious Prestige AFC project not only calls for complete modernisation of London Underground's AFC system, but also involves equipping 6000 buses to provide through ticketing between bus and rail. Tickets will be distributed not only through station ticket machines, but also through a network of 2500 merchants.