1. Metropolitan Transportation Authority New Fare Payment Systems Update Presentation to Capital Program Oversight Committee May 23, 2011

2. Metropolitan Transportation Authority Agenda Goals Concept Challenges Moving forward 2

3. Metropolitan Transportation Authority MTA goals Lower cost of revenue collection Average 15¢ cost per revenue dollar collected Integrate fare payment across modes & agencies Substantially reduce cash use Speed up performance at turnstiles & fareboxes Speed up bus boarding and reduce dwell times Future-proof 3

4. Metropolitan Transportation Authority Fare payment concept Account-based, not card-based –More like E-Z Pass, less like MetroCard Account may reside with bank, MTA, mobile phone network or other 3 rd party provider For entry, customer will tap, not swipe, at readers on turnstiles and fareboxes Tap contactless credit/debit card, prepaid card, phone or MTA Card 4

5. Metropolitan Transportation Authority Fare payment concept (cont.) Encourage customers to self-serve on-line, at ATMs and kiosks, and via widespread external network of retail merchants Leverage existing payment industry infrastructure, products and services Use relatively inexpensive and commercially available off-the-shelf-hardware and software Applicable to all modes and agencies –All agencies involved in concept development –All agencies have or will have pilots 5

6. Metropolitan Transportation Authority Commuter railroad pilots One pilot for each LIRR and MNR –On-board and off-board payments Plus test handheld devices Pilots commence in 1Q 2012 6

7. Metropolitan Transportation Authority 7 Industry outreach Suppliers Transit authorities

8. Metropolitan Transportation Authority 8 Industry outreach: Suppliers Widespread industry interest about this project May 10: 150 representatives from 80 vendors Payment industry including banks and other issuers, card brands, acquirers System integrators Hardware manufacturers Wireless network carriers Fare collection system suppliers IT service companies

9. Metropolitan Transportation Authority 9 Industry outreach: Transit authorities Current implementations of open payments London (TfL) Salt Lake City (UTA) In close contact with major US transit systems that are procuring open payment systems Working with regional partners on seamless intermodal travel NJT PANYNJ/PATH

10. Metropolitan Transportation Authority Fare payment challenges 10 Installation of bus readers Managing commercial relationship with payments industry Subway communications networks MTA-issued card & reload network Transition from MetroCard Customers Employees Effective communication

11. Metropolitan Transportation Authority Moving forward: Next 6 months Develop detailed requirements for MTA-issued card and reload network Develop Project Plan: requirements, cost estimate, schedule, procurement strategy Develop payments industry negotiation strategy Finalize subway communications networks plan Select System Integrator Install hardware on Staten Island buses 11