Over the years, automatic fare collection (AFC) systems have transformed significantly. Ticketing technologies and systems have evolved from paper-based tickets to closed-loop contactless smart cards, from catering only to metro tickets to more advanced interoperable open-loop cards that are highly secure, scalable and reliable. Further, metro corporations are not just relying on single-technology solutions but are deploying hybrid-ticketing solutions, involving a mix of technologies to cater to the growing passenger footfall at stations.
Going forward, with the expansion of the country’s metro network, the demand for state-of-the-art AFC technologies is set to surge. Further, metro operators are migrating from the current architecture to newer and advanced ticketing mechanisms, further creating opportunities for technology providers. That said, the challenge lies in developing technologies that are not just smart but are interoperable and can be integrated with other modes of transit to make public transportation completely seamless.
Prevalent technologies
Since the operationalisation of the Delhi metro, several advanced digital ticketing solutions have been introduced across metro stations to promote cashless transactions. Now, the AFC architecture is not just limited to closed-loop tokens or smart cards but has moved towards the open-loop technology which ensures interoperability. Open-loop-based common mobility cards, account-based ticketing solutions and QR code-based mobile applications are some of the advancements made in the AFC segment. Apart from this, there has also been indigenous development of AFC solutions, primarily as a result of the Make in India initiative.
Indigenous AFC systems
In order to avoid vendor lock-in and to create an affordable interoperable system, a need was felt to develop an indigenous AFC system. In this regard, the central government launched the National Common Mobility Card (NCMC) called One Nation, One Card, on March 9, 2019, for all types of digital transactions. The initiative was launched by the Ministry of Housing and Urban Affairs in collaboration with Bharat Electronics Limited (BEL) and the Centre for Development of Advanced Computing (CDAC) with the support of the Delhi Metro Rail Corporation (DMRC), the National Payments Corporation of India (NPCI) and the State Bank of India (SBI). The aim was to standardise and indigenise the complete ecosystem for the NCMC, covering the AFC system, access gates, mobility cards and card readers/validators. In this regard, the first indigenous AFC gate – SWAGAT – was also launched along with SWEEKAR, the supporting AFC system. This card supports all payments for the metro, buses, suburban railways, toll, parking and retail, and is available on all prepaid, debit and credit platforms. It also allows offline transactions.
Open-loop cards
Open-loop cards based on the EMV (Europay, Mastercard or Visa) contactless technology have become one of the prevalent mediums of ticketing. The Kochi metro was the first to deploy these cards. It was followed by Noida Metro Rail Corporation Limited (NMRCL) that has also adopted the open-loop card on select stretches. The Kochi metro launched the Kochi 1 Card, a prepaid card attached to a single wallet for making transactions related to purchasing tickets or payments at retail counters. The card was developed by Axis Bank in partnership with the NPCI. Similarly, NMRCL launched the RuPay contactless smart card on the Aqua Line that can be utilised not only for ticketing but for making all kind of purchases. The card has been issued by SBI in association with SC Soft and Aurionpro and NMRCL. In February 2019, Maha Metro also introduced an all-in-one card MAHA Card that caters to commuting needs as well as other daily needs, within the city.
In October 2019, Bangalore Metro Rail Corporation Limited (BMRCL) and the Bangalore Metropolitan Transport Corporation (BMTC) also revealed plans of introducing a common mobility card that can be used on the metro as well as on buses. It will be developed by BEL and CDAC. Trial runs are expected to commence by January 1, 2020. To begin with, this interoperable card will be functional at four gates of the Nadaprabhu, Kempegowda and Byappanahalli stations of the Bengaluru metro, Phase II, on a pilot basis. Apart from this, Mumbai Metro Rail Corporation Limited has awarded the contract for an AFC system at 27 stations of the Mumbai metro, Line 3, to a consortium of Turkey-based ASIS Elektronik ve Billisim Sistemleri and Kalindee Rail Nirman. The system will be compatible with the common mobility card.
Mobile ticketing
The QR code-based mobile ticketing solution is also being deployed widely by metro operators. With this technology, commuters no longer have to carry smart cards as the QR code will be displayed on the mobile phone, which could be tapped at the AFC gate of any metro station. The Kochi Metro Rail Corporation, for instance, launched the Kochi 1 app to generate the QR code apart from offering other functionalities like managing card balances. Similarly, the DMRC launched QR code-based tickets on the Airport Express Line whereby commuters can book tickets using the Ridlr mobile application. BMRCL also has plans to introduce this technology across 61 stations in Phase II of the metro project, the contract for which was awarded to AGS Transact Technologies Limited in September 2019.
Apart from this, Mumbai Metro One Limited has an application called SkiiipQ to generate QR codes. The application is operational on the Versova-Andheri-Ghatkopar metro line. The Chennai metro is also planning to launch a similar QR code-based ticketing solution for seamless movement of commuters.
Other advancements
Biometric identification-based smart cards are other AFC solutions that are being developed by technology providers and adopted by metro corporations. The DMRC has plans to replace the existing chip-based smart card system to biometric identification-based smart cards. The system is planned to be introduced for students and senior citizens so that fare concessions can be provided.
Installation of electronic chips in wristwatches is another advancement being planned to be introduced in the the Chennai metro. For this, the Chennai Metro Rail Corporation is in talks with watch manufacturer Titan to develop watches that will allow commuters to just flash their wrist watches at the automatic ticketing gate to get entry into a station. In addition, third-party digital payment platforms such as Paytm, PhonePe, Mobiwik, and Google Pay are increasingly collaborating with metro corporations to offer easier recharge facilities for smart cards. Further, account-based ticketing solutions are being offered by banks through issuance of dual-chip credit/debit cards.
Conclusion
The need for a faster payment process owing to the increasing number of daily commuters has buoyed the demand for robust payment solutions across the country. Going forward, major demand for AFCs is forecasted to emerge from Tier II and Tier III cities with several upcoming and ongoing metro projects. This opens up opportunities for Indian manufacturers and technology companies to tap the growing market, which is still dominated by global players like Thales.
That said, given the pace of digitalisation, further advancements in transit fare collection systems are expected to be seen which will create healthy competition among technology providers, as well as provide a bigger basket for operators to choose from. However, keeping in mind the existing conditions in Indian cities and the existing AFC solutions, technologies that are interoperable (can be integrated with existing systems), futuristic and scalable are expected to have great potential in revolutionising public transportation. These solutions will not only be far more efficient but will also benefit all stakeholders – customers, operators, industry players, the government and urban communities.