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Simplified ticketing system could help solve Jabodetabek transport issues: Visa Study


Jakarta, Indonesia, 20 November, 2014 – An effective transport payment system could be the key to encouraging greater use of public transportation and reducing congestion in Jabodetabek, according to the Transit Payment Solution Study[1] (the “Study”), conducted by Deloitte Consulting on behalf of Visa.

The Study aims to understand which transport payment system will best address Jabodetabek’s severe traffic congestion and solve some of the operational inefficiencies caused by high reliance on cash payments in today’s public transport services.

The proposed solution is Jabodetabek should develop a transport payment system that accepts any bank issued contactless card on top of the current payment system that accepts multiple transportation cards. This will allow commuters traveling on public transportation to use one payment card across all modes of transport such as the bus, train, Mass Rapid Transit and the Monorel. Today, for example, commuters taking the bus might not be able to use the same payment card to pay for their train tickets, and vice versa.

“Bank Indonesia’s recent launch of its National Non-Cash Movement (Gerakan Nasional Non Tunai) underscores the Government’s commitment to move the country to electronic payments as a means to reduce the cost and inefficiency of cash management. Given the Government’s emphasis on promoting cashless payments especially in the transportation sector, Visa aims to provide our expertise to help the public transport and payments industries develop a transport payment system that can increase commuter satisfaction and encourage the greater use of public transportation,” said Ms. Ellyana Fuad, President Director of PT Visa Worldwide Indonesia.

This Study is timely as the Jakarta government is targeting to increase the use of public transportation to 34 percent by 2020 and to 37 percent by 20301, to resolve Jabodetabek’s traffic problem and support the Metropolitan Priority Area’s economic development goals. Today, public transport use in Jabodetabek is only at 22 percent, as compared to Hong Kong’s 88 percent, Greater Mumbai’s 45 percent and Singapore’s 44 percent1.

In London today, Visa contactless cards – known as Visa payWave – are used on all public transportation services, allowing the city to improve the interoperability and payment security of the public transport system, while reducing costs.

To understand which transport payment system will best address Jabodetabek’s challenges, Visa’s Study looked at the most successful transport payment systems around the world to identify best practices. Potential options were evaluated based on how well they address Jabodetabek’s

“With a transport payment system that allows commuters to use one card for all their transportation needs, such as their Visa payWave-enabled credit or debit cards, means that you will only need one card for your everyday spend – from buying groceries to taking the bus to dining out. This also means that the transportation network can now be accessible to more users. Tourists will be able to enjoy the convenience of the Greater Jakarta public transport network. In addition, Visa cards are more safe and convenient than using cash – if you lose your cash, you lose everything but if you lose your card, you can easily get a replacement,” added Ms. Fuad.

According to Jakarta Deputy Governor, Mr. Basuki “Ahok” Tjahaja Purnama, the government is introducing cashless payments into daily activities starting with public transportation. Currently train passengers already carry out cashless transactions. Next year, the Jakarta government is targeting to implement cashless payments on Transjakarta buses. Ahok has intentions to move toll road and tax payments onto cashless transactions as well, reportedly with the ambition to make Jakarta cashless by 2016.

“As Indonesia moves towards a cashless society, building an integrated electronic payments system for transport use puts Indonesia at the forefront of “innovation” as this paves the way for future innovative modes of payments such as contactless mobile payments in this highly connected and mobile country,” added Ms. Fuad.

[1]Greater Jakarta Transit Payment Solution Study, September 2014 by Deloitte Consulting, conducted on behalf of Visa, Jun – Aug 2014.

About Visa

Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit www.visa-asia.com, visaapnews.asia and @VisaNews.

 

About Visa payWave

Visa payWave is a fast and secure, contactless chip technology that allows you to pay for everyday purchases with a simple wave of your card or mobile phone. Visa payWave cards are now accepted in 51 countries, including more recently in Brazil, China, Japan, and used in more places, such as London’s transport network. Adoption of contactless payment technology is also increasing, with one in every two transactions at physical merchants in Australia being completed with Visa payWave.

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