integrated payment

Smart mobility encompasses a range of options to pay for services without the use of cash. These include electronic toll collection, electronic payment for transit services and cashless payment for parking. Electronic toll collection involves the use of dedicated short range communication technologies to support a transaction between the vehicle and suitable roadside infrastructure.

Typically, the user has established a prepaid account, usually linked to a credit card account, enabling funds to be deducted when the vehicle is detected crossing a tolling point. Electronic toll collection has substantial value in increasing the capacity of toll facilities and reducing the need for manual cash collection. 

Savings result from higher throughput of traffic and avoidance of the cost of handling physical cash including shrinkage, or fraud. Initially, electronic payment for transit and parking was supported using smart cards and credit cards, although more recently the use of Host Card Emulation technology has become prevalent. This involves the use of a smart phone as a virtual credit card. Examples include Google Pay, Apple Pay and Samsung Pay. 

The user holds the smart phone next to a receptor device and the wireless communication supports the financial transaction. Integrated payment holds are a much larger potential for value and benefits and the integration of the various payment channels to provide what is sometimes known as a universal payment system for a city. This would support the payment of tolls, transit fares, parking fees and all small value transactions with a single device and a single account. 

In addition to using existing technologies such as smart card and host card emulation, smart mobility will also feature the use of an emerging technology – blockchain. This technology will enable the type of financial transaction network and distributed ledger required to support citywide electronic payment for all modes. It also has benefits in terms of reduced cost of operations and a higher level of security.