LAMATA News Bulletin

Electronic Payment Scheme for
Transportation:
A case study of LAMATA
By
Dr. Dayo Mobereola
Managing Director,
Lagos Metropolitan Area Transport Authority (LAMATA)
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June, 2014
Presentation Outline
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Introduction
The Paper Ticketing System
The E-Ticketing System
Benefits of ePayment in Transportation
Moving Forward
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Introduction
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Vision: To be a foremost facilitator of a
sustainable and effective integrated
transport system
LAMATA Launched:
Bus Rapid Transit (BRT) in 2008
Bus Franchise Scheme (BFS) in 2009
Electronic Ticketing System in 2013
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Bus Rapid Transit (BRT)
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BRT Lite:
Mile 12- TBS
22 Km Corridor
65% Segregated Lane
3 Terminals
29 Bus Stops
1 Depot
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Bus Franchise Scheme (BFS)
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Ikotun – Igando – Iyana-Ipaja
– Maryland - Ikeja
8 routes
5 Terminals
1 Depot
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The need for a Ticketing System
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Paper Ticketing System
Process
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2 stub, Color differentiated Zonal
Tickets
Ticket Dealing Companies
Purchase directly from bank
6% Commission to Ticket Dealers
1.5% Commission to Ticket Sellers
Daily Bus Shelter rotations
1 stub of ticket collected by Bus Pilot,
2nd stub retained by commuter
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Paper Ticketing System
Challenges
 Ticket Recycling
 Fraud
 Fake Tickets
 Littering of used Tickets
 Overriding of passengers
 Adequate data collection
Ticket Seller in Operation at a Bus Shelter
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Solution to Challenges
Introduction of an Electronic
Ticketing System
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E-ticketing System Stakeholders
LAMATA
Operations
Revenue Reconciliation
& Settlement
Regulation
BUS
OPERATORS
SYSTEM
PROVIDER
SWITCHING
COMPANY
TICKET
DEALERS
FINANCING
BANK
Technical Support
System Operation
Virtual Ticket Sales
Revenue Collection
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Implementation Process
Identification
of User Needs
Development
of System
Requirements
Appointment
of System
Provider
Publicity
Outreach and
Awareness
System Pilot
Test
• Using Commuters as testers
Adjustment to
System
Full
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Implementation
System Components
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System Smart Card:
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A store-value-based
contactless smart card
application
Lagos Connect Cards
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Bus Validator:
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Location: Front and Rear of Bus
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Commuters ‘Tap-in’ and ‘TapOut’
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GPS Locators to Identify bus
stops and ensure accurate fare is
deducted
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Reloading Terminal
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Fixed: Used by Financing
Banks to ‘top-up’ Ticket
Dealers
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Handheld: Used by Ticket
Sellers at the shelters to
‘top-up’ commuters
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System Backend:
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All transactions recorded
Stakeholders access
Generates Reports
Date specific
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Reconciliation
Settlement
Revenue Shared amongst:
Operators
System Provider
Switching Company
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Expected Benefits
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Increased commuter ridership,
Improved data management,
Improved visibility in the operations and revenue
collection,
Better interchange opportunities for commuters
Reduced fraud.
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e-Ticketing System Challenges
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Reduction in the operators revenue due to the slow
increase in ridership and significantly lower fare
Vandalism of the system components such as the
bus validators
Poor acceptance by the operators due to their loss
in revenue
Technical errors and obscurity
Poor understanding of how to operate system
equipment
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Implemented Solutions
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Fare Re-structuring
More Publicity Enlightenment
Sensitization of Operators
Training of ticket sellers
Upgrade of system components
Increase in Ticket Dealers’ commission
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Lessons Learnt
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Need for adequate recurring training
Need for adequate stress testing
Importance of Identification of user needs to
ensure an effective ePayment scheme
Importance of Publicity Outreach and Public
enlightenment
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Benefits of ePayment in Transportation
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Transparency in Transactions
Reduction in Number of transactions
Integration of Trips
Ease of Transfer
Ease of Introduction of fare transfer discounts
Lower cost
Sustainable and Environmentally friendly
Effective data collection and storage
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Moving Forward with E-payment…
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A fully integrated Multi-Modal Public
Transportation Network with the capability to use24
1 form of payment – ePayment System
Moving Forward
Closed Loop System
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Vs
Open Loop System
An Integrated e-Payment Scheme across all
sectors (commercial, banking, transportation etc.)
Mobile ‘Top-up’
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