As more and more cities are opting for the deployment of metro systems as a preferred mode of public transport, the market for automated fare collection (AFC) systems is growing in tandem. From 2006, the AFC market increased at a compound annual growth rate of 16 per cent till 2019. Growth has picked up in recent years as more projects have become operational. This has also led to the introduction of innovative solutions for fare collection, further supported by cashless transactions through mobile wallets and QR codes. Indian Infrastructure looks at the technologies adopted for fare collection across major metro systems in the country…
Account-based ticketing
Account-based ticketing (ABT) is a back-end system where the fare calculation and transaction is performed against an account in the back office that is not necessarily Europay, MasterCard or Visa chip compliant. Recently, metro corporations have turned to ABT systems to improve efficiency of metro ticketing. For instance, Kochi Metro Rail Limited has partnered with Axis Bank to develop a smart card that will automatically deduct money from the user’s bank account.
National Common Mobility Card
In order to avoid vendor lock-in and to create an affordable interoperable system, a need was felt to develop an indigenous AFC system. To this end, the central government launched the National Common Mobility Card (NCMC) – One Nation, One Card – on March 9, 2019, for all types of digital transactions. The first indigenous AFC gate – SWAGAT – was also launched along with SWEEKAR, the supporting AFC system. SWAGAT was launched during the inauguration of Ahmedabad metro, Phase I in March 2019.
The card has been deployed on systems such as the Kochi metro, Noida metro and Nagpur metro as well as buses operated by Navi Mumbai Municipal Transport. Mumbai’s Brihanmumbai Electricity Supply and Transport buses became the first in the country to roll out the NCMC. Meanwhile, Bangalore Metro Rail Corporation Limited announced plans to launch the NCMC to enable citizens to travel on Namma Metro and buses of the Bengaluru Metropolitan Transport Corporation using a single card. In addition, Visa has launched its own NCMC for India. Visa NCMC will have the contactless feature of tapping to pay and will be accepted by participating public transport operators across the country. MasterCard too has plans to join the NCMC scheme.
Open-loop ticketing
Open-loop cards based on the EMV (Europay, MasterCard or Visa) contactless technology have emerged as an alternative mode of ticketing for ensuring seamless travel. The Kochi metro was the first to deploy EMV cards. It has launched the Kochi1 Card, a prepaid card attached to a single wallet for making transactions related to purchasing tickets or payments at retail counters. Along the same lines, Noida Metro Rail Corporation Limited launched the RuPay contactless smart card on the Aqua Line that can be utilised not only for ticketing but for making all kinds of purchases. Maha Metro, in partnership with the State Bank of India, has also introduced an all-in-one card – MAHA Card – for Nagpur city that caters to commuting needs as well as other daily needs, within the city.
Mobile ticketing
QR codes are fast replacing single-journey smart tokens, thus resulting in huge operational cost savings for transport operators. With this technology, commuters no longer have to carry smart cards as the QR codes get displayed on passengers’ mobile phones, which can be tapped at the AFC gate of any metro station. The Delhi Metro Rail Corporation (DMRC) launched QR code-based tickets on the Airport Express Line whereby commuters can book tickets using the Ridlr and Paytm mobile applications. Apart from this, Mumbai Metro One Private Limited has an application called Skiiip Q to generate QR codes. The application is operational on the Versova-Andheri-Ghatkopar metro line. Hyderabad Metro Rail Limited also launched a QR code-based e-ticketing system recently, in association with MakeMyTrip, for metro passengers.
Other advancements
Biometric identification-based smart cards are other AFC solutions that are being developed by technology providers and are planned to be adopted by metro corporations. The DMRC is planning to replace its existing chip-based smart card system with biometric identification-based smart cards. Third-party digital wallets/ payment platforms such as Paytm, Amazon Pay, MobiKwik, Google Pay and PhonePe have also started offering top-up as well as payment facilities to commuters.
Outlook and the way forward
Given the pace of digitalisation, the adoption of AFC systems is bound to increase. Their increasing uptake is expected to benefit all the stakeholders of the urban mass transit ecosystem – the government, industry players, customers, services operators and industry players. According to India Infrastructure Research, the AFC market in the country is buoyant as about 117 stretches (metro rail, light rail transit and regional rapid transit system) are in the pipeline for which AFC contracts are expected to be awarded (as of March 2020). For these upcoming stretches, about 1,075 stations will be constructed which represent a huge order book for AFC infrastructure.