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Business Strategy Literature Review
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Business Strategy And The Role Of Engineering Product Data Management: A Literature Review And Summary Of The Emerging Research Questions
8 Literature Review This chapter provides an overview of the literature related to transit fare payment technology, particularly mobile fare payment applications, and is organized into two sections. The first chapter reviews previous studies of TCRP. This section summarizes TCRP reports that provide important information on transportation pricing policy and technology and provides a more detailed summary of recent TCRP research focusing on new pricing technologies. The second section covers academic papers, conference proceedings and university reports related to mobile payment applications. Past Research from the Transit Cooperative Research Program This section summarizes past research on fare policy and TCRP charging technologies. Over the past 25 years, numerous TCRP studies have examined tariff system trends and technologies. Related TCRP studies are listed chronologically in the TCRP Research List. The first three studies provided important information on tariff policies and widely used tariff technologies, and each provided a brief summary. The fourth and fifth studies listed in the text box (TCRP Report 177 and TCRP Synthesis 125) are particularly relevant to this report because they included important discussions of mobile technologies used for payment. Due to the relevance of these two studies, a more detailed summary is presented. A sixth study on multimodal pricing was conducted in parallel with this study and, at this time, cannot be generalized. TCRP Report 10: Road Policies, Structures, and Technologies reviewed fare policies, road structures, and fare technologies used by transit agencies (Fleishman et al., 1996). A framework with three main components is presented. 1. Tariff Policy: These are the principles, objectives and limitations of determining and collecting tariffs. 2. Tariff Strategy: This is the overall tariff collection and payment structure approach, such as fixed rates or differential pricing. 3. Bet structure: it is a combination of one or more betting strategies with a certain rate level. C H A P T E R 2 List of Related TCRP Studies ⢠1996 TCRP Report 10: Road Policy, Structures, and Technologies ⢠1998 TCRP Report 32: Multi-Purpose Transit Payment Media ⢠2003 TCRP Policy and Technology, Structure: An Assessment Update ⢠2015 TCRP Report 177: Preliminary Strategic Analysis of Next-Generation Payment Systems for Public Transport ⢠2017 TCRP Synthesis 125: Multifaceted Electronic Fare Payment Systems ⢠2020 TCRP Synthesis 144: Payment Integration 144:
Literature Review 9 TCRP Report 32: Multi-Purpose Transit Payment Media explored advances in payment technologies, particularly smart cards, that have enabled fare media to be used in multiple transit systems or non-transportation functions (Fleishman et al., 1998). Two different environments have been identified for open or closed multimedia (see text box). Five critical issues to consider when building a multipurpose program were identified: (1) institutional and financial, (2) legal and regulatory, (3) operational and administrative, (4) technological, and (5) customer-related. As the name suggests, TCRP Report 94: Traffic Policy, Infrastructure, and Technology: An Update on the Revised TCRP Report (Multisystems, Inc. et al., 2003). In this report, the main parameters of the tariff system (policy, structure and technology) were examined in detail, and their interrelationships were identified. These three main parameters can be summarized as follows: 1. Fare Policy: Similar to the TCRP 10th Report, the fare policy was asked to establish the principles and objectives that underpin and guide the transit agency’s pricing decisions. 2. Tariff Structure: It is divided into three components as follows: a. Tariff strategy: This includes the overall approach to the basic tariff (ie, fixed tariff versus differentiated tariff) and the transfer policy. b. Payment options: These were different forms of payment, such as period passes or multi-journey tickets. Payment options will be referred to as tariff products in the following report. c. Road Fares: These are the actual fares paid by transit riders. 3. Technology: It is divided into two components as follows: a. Type of Toll: This refers to the manner in which the tolls are approved or verified (ie barriers, conduit approved, etc.). b. Fare Media: These were instruments used to make payments such as tokens, magnetic stripe cards or smart cards. TCRP Report 177: An Initial Strategic Analysis of Next-Generation Public Transit Payment Systems included a detailed summary of new and emerging technologies used in transit fare payment systems (Vallicek et al., 2015). The authors proposed a framework for system-level transportation toll design and identified the following four key design features. They are: and (4) card-based billing systems. The last two features are particularly relevant to this report, and more details are provided in the text box to the right. In the TCRP 177 report, the authors also identified four types of mobile technologies that can be used for payment and authentication, which are described below. ⢠Type 1: Flash Pass and QR barcodes Flash Pass systems use smartphone apps to mimic paper tickets. When a passenger boards a transit vehicle, a smartphone screen displaying the ticket is presented to the operator or conductor for Closed Environment: Transit-payment software that may accept one or more issuers and/or transit agencies as fare media. Open Environment: A broader program in which a transit agency accepts media provided by one or more non-transit organizations, such as a bank or university. Open Payment System: A value-based payment system that can accept third-party payment methods such as bank cards. Open industry interface standards and specifications are often used. Account-based system: A transit fare payment system in which the fares link the transit carrier with the information on the account. Tolls are not carried in the tolls typical of card-based systems, but instead are kept in a separate account. Road development is usually done in the back office of the transportation system.
Visual inspection of 10 business models for mobile fare applications, as typical of the âflash passâ fare collection system. Ticket screens typically have dynamic security features such as moving animations, countdowns or changing ‘daylight’ to prevent users from creating e-tickets through screenshots or other means. It can also be accompanied by a machine-readable two-dimensional QR barcode that can be scanned by a mobile validator or smartphone. This type of mobile payment technology is now widely used in the United States (Ali et al., 2017; Zion et al., 2016). ⢠Type 2: Near Field Communication (NFC) uses radio frequency communication to exchange data over short distances. When used to collect transport fares, the NFC chip can be ‘touched’ by public transport users at toll gates or other readers’ phones. One way to use NFC payments in transportation systems is with products like Apple Pay, Google Pay, and Samsung Pay. ⢠Type 3: Short Message Service Short Message Service (SMS) can be used to send transport tickets via SMS to mobile phones. In this model, public transport users send an SMS message to the transport agency, which responds with a specific fare code. The SMS ticket can then be presented to inspectors or conductors for visual inspection. Although this model is used in many European cities (Apanasewicz and Markendahl, 2017; Apanasiewicz and Markendahl, 2018), it is uncommon in the United States. • Type 4: Passive mobile technologies The last type of mobile payment uses technologies such as Bluetooth Smart or Bluetooth Low Energy to create a passive interaction between the public transport user’s smartphone and the fare reader. It’s called passive technology because users don’t need to physically interact with their phones to make a payment. This type of mobile technology is not yet widespread in the United States; Limited deployment available in Europe. The authors of TCRP Report 177 also presented a detailed comparison of these four mobile rate payment technologies shown in Table 1. A recent related TCRP publication is TCRP Synthesis 125: Multifaceted Electronic Price Payment Systems (Okunief, 2017). This study focused on a new electronic fare payment system for a multimodal and multifunctional environment. General overview