8) The Impact of e-Payments on Transport

Report
Payment System Vision
2020
International Payments Conference
Abuja 2013
PSV Initiatives – Breakout Session
TRANSPORT
1
TRANSPORT INITIATIVE
Background
Payment System Vision 2020
Transportation or commutation is part of everyday living today.
Electronic payments hold great potentials for the Transport sector
especially where electronic payments are imbibed at all stages of the
entire Transport value chain.
The benefits to commuters, transport businesses and investors, and the
nation at large are enormous.
The Transport Initiative aims to, at a minimum, develop strategies for
getting the public to pay for (inter-city and intra-city) transportation
electronically.
Our mandate is to demonstrate the benefits of e-payments in the
transport business by implementing a PILOT with companies such as
BRT, ABC Transport, Danfo operators, Taxi operators(Yellow Cab, Red
cab), etc.
2
TRANSPORT INITIATIVE
Rationale
Payment System Vision 2020
A closed eco-system accepting dedicated payment cards
and/or normal payment cards
Good public awareness
Easier to offer incentives for electronic versus cash.
Pilots publicised as model implementation to attract the
interest of stakeholders in transportation business
3
OBJECTIVES
To demonstrate the relevance of cashless system to the transport sector
•Increasing adoption of electronic payments over cash
To show that electronic payments has benefits for the transport sector in cost savings,
safety, and bottom line, and engenders Financial Inclusion.
Payment System Vision 2020
•Pilot implementation
To articulate different areas of the transport sector where electronic payment is applicable –
vehicle purchase, hire purchase management(e.g. direct debits), passenger payments, fuel
purchase, insurance, data gathering and management etc
•Pilot implementation
To engage different transport stakeholders in publicity/enlightenment programmes
•Number of industry stakeholders engaged.
To generate statistics that are relevant to transport sector, to facilitate electronic payment
adoption trends
•Periodic release of transport sector statistics
To articulate incentives for electronic payment consumers, to grow adoption e.g. discounts
for e-payment based passenger payments
•Adoption rate
4
STAKEHOLDERS
Payment System Vision 2020
Banking Industry
1
CBN
2
All Banks as issuers of
payment tokens
3
4
5
All Banks as acquirers of
electronic transport
payments
User Community
Consumer Rights Protection
Agency
Taxi Drivers association
Service Providers
Banks
Processors
Transport Owners Association
Nigeria Central Switch
Transport Employees Association
NIBSS (settlement)
Petrol stations
Card Schemes, Mobile
Payment Operators
Air Travel industry
EFiNA
FRSC
6
Auto dealers
Federal Ministry of Transport;
States Transport ministries
7
5
Payment System Vision 2020
SYNERGY WITH FSS2020
FSS2020 Work
Stream
Financial Markets
Level of Synergy
Rationale and Approach to Leverage Synergy
High
Payment s is an integral part of transport system.
Adoption of electronic payments in transport
business will help to grow electronic payment
adoption in other facets of life.
Insurance
Medium
Mortgages
Low
Pensions
Low
Credit (Micro/SME)
Medium
Electronic payments will promote credit in the
transport sector – Direct Debits will grow lease
and hire purchase market.
6
Payment System Vision 2020
IMPACT ON FSS2020 THREE COMMON THEMES
FSS2020 Theme
Level of support
Rationale and approach to support the
Theme
Deepening
High
Economic Growth
Medium
• Everyone uses the transport system. The
success of this initiative will help in shifting
paradigms from cash to non-cash in other
aspects of life
• Success of this initiative will enhance economic
growth as it will help to deliver electronic
payments benefits in the country
• convenience, higher velocity of money,
enhanced revenue for investors in transport
business, etc.
International
Medium
• Success of this initiative has potentials of
attracting foreign investment to the transport
sector.
7
KICK-OFF TASKS (2 MONTHS)
Payment System Vision 2020
Milestone
Specific deliverables
1
Ascertain current payment State-of-the-Art report
practices for transport at a
major city e.g. Lagos
2
Articulate cost-benefit analysis Cost-Benefit Analysis
of cash/electronic payment for
transport system
3
4
Select pilot transport system for Pilot transport system with clear justification for
focus
selection
Rally payment service providers Transport System payment solutions document
to agree suitable payment
system(s) for transport system
8
MEDIUM TERM PLAN (10 MONTHS)
Milestone
1
Payment System Vision 2020
2
3
4
5
Specific deliverables
Implement a pilot scheme
Increased e-payment adoption in the selected transport
scheme
Ensure that payments for Analysis of percentage of journeys paid using electronic
transportation
on
a means before and after the pilot
selected
mass
transit
system can be made
electronically
Publicise achievement with Publicity Plan
pilot scheme
Organise
enlightenment Increased e-payment adoption in the transport sector
campaign for transport
system stakeholders , to
replicate success of pilot
Articulate bottle-necks and Report
critical success factors
9
Payment System Vision 2020
RISKS AND DEPENDENCIES
Dependency and
Risk category
Level of risk or
dependency
Rationale and approach to mitigate risk and
dependency
1
Infrastructure
High
Explore different e-payment platforms and technologies
to identify those suitable for the transport sector
2
Legal and Regulation Low
CBN Guidelines are sufficient. Also to consult relevant
guidelines of the Federal Transport ministry
3
Public Awareness
High
Transport sector is large. An articulate public awareness
programme is required to run an effective public
awareness programme. Services of advert/marketing
agencies required.
4
Resources – people
High
A lot of Leg work is required. Advert/marketing
companies would be involved.
5
Resources – finance
High
Substantial funding is required to run an effective
implementation
Viability/Profitability High
Service providers would not show interest in transport
sector if the business is not commercially viable for
them. A cost recovery analysis would be articulated to
eliminate all doubts.
6
10
RECENT DEVELOPMENTS
 Fortis Mobile.
– Fortis Mobile (of the licensed MPOs) is piloting mobile payment with ABC Transport, and
is at the verge of signing agreement with FRSC for managing penalty payments with
Mobile wallets.
Payment System Vision 2020
 LCC Toll payment
– e-Tag cards (tap and go) have been introduced at the Lekki-Epe Expressway toll gates.
 LTC Toll payment
– e-Tag cards (tap and go) have been introduced at the Lekki-Ikoyi bridge.
– Prospective Partner Organisations: e-RG, EFiNA, FortisMobile, Banks,NIBSS.
 LAMATA.
– The Lagos State transport company, LAMATA, has been piloting e-ticketing since 2011 and
rolled out operations in early 2013. The technology is based on NFC contactless (tap and
go) card payments, with NFC readers installed in buses.
– LAMATA has provided incentives by making e-ticketing cheaper for transport payment
than cash.
11
Payment System Vision 2020
LAMATA
12
Payment System Vision 2020
Questions and Discussion
13

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