TAG's specific attributes make it the preferred choice to replace all kinds of token systems.
Consider this simple scenario. You are about to get on the subway. As you approach the turnstile you hold out your mobile phone and are authorized to proceed. No fumbling with coins or transit cards. Just use the phone you often have in your hand anyway.
We’ll expand on the details of this in a moment but for now try to determine if this is a convenience. If in any way it were a hindrance, you could also print your TAGs and use their paper representations; it really is up to you.
All over the world, there are organizations that use tokens and coupons to conduct business and all of them are investigating alternatives to increase productivity and manageability but most often the main reason is to reduce costs. Many of them are considering using QR Codes for this purpose; however, TAG offers far greater flexibility.
There are a number of key issues to consider and related information can be found elsewhere on this site.
Transit companies can use unique TAGs. These can be dynamically activated and deactivated for this purpose, making them mathematically impossible to counterfeit and therefore secure for both the service provider and the customer. There is additional information available under the title Anti-Counterfeiting.
A system based on TAG can be flexible enough to provide either pay-as-you-go or an account based distribution. Customers can receive the physical representation of a select number of TAGs as a batch purchase or generate them individually on their phone in a matter of seconds. The provider’s purchase and distribution systems can be equally manageable, allowing for different marketing strategies and promotions.
Customers can obtain Transit TAGs directly on their mobile devices or from any internet connected source. They can print a TAG or a page of TAGs, saving them or using them just as they would cash or coupons. Of course, in using paper they would be subject to the same drawbacks such as being lost or stolen but since TAGs can be deactivated, providers could have a recovery policy in place to deal with that as well.
A custom application for the mobile device can be used to hold a number of TAGs ready for use. Such an application could be as simple as one that just displays an image from a file stored on the phone. In order to provide a reasonable experience an application’s default would be to display the next available TAG on start-up. Similarly, an alternative application could be based on an account with the transit company and in that case a TAG could be generated on the fly.
In either case, the phone or paper TAG can be presented to a reader to authorize entry onto the system. When the Operator’s reader reads a given TAG, it must be valid in order to be redirected to the Company’s service. A successful connection would initiate a transaction that includes authorizing the customer to proceed and invalidating the TAG for further use by deactivating it at source.
One other consideration relates to interconnected sytems like buses and trains or subways. In cases where transfers are common, deactivation can be delayed to allow customers sufficient time to reuse their TAG on connecting services. This benefits both the producer by eliminating the paper tranfsers and the consumers, who simply use one TAG for their entire route. The data relating to such connecting services would form one of the metrics that transit companies would find value in and as always are immediately available.
Elsewhere on this site we discuss various metrics and analytics that become available through the use of TAG. The value to this information for the transit system providers can be more than just aggregates and in fact near real-time analysis can extend into actual operations.
Since, TAGs are unique, entry into any system can be monitored, retained and utilized. As an example, consider customers that have an account with the transit company. Once someone’s TAG is read they are considered as entered into the system and companies can then send them updates about delays or other system activity. While some concerns over privacy exist, it really is no different than using a transponder for access to a highway or a passenger manifest on an airline.
Furthermore, if companies utilize the opt-in model, then a reasonable conclusion would be that this presents an opportunity to provide additional services; such as text or media. Unlike people commuting in cars, there is no reason not to use your phone on public transit. Subways that operate underground have are additional technical requirements; however, buses and taxis could provide services immediately.
Eliminating cash transactions could reduce the incidence of robbery. While other methods like credit and debit cards provide similar benefits, not everyone has cards. A specific system based on TAG only applies to the transit provider and is therefore more acceptable to parents who want their children to be able to use certain services at their discretion.
In an effort to provide some guidance toward determining the potential of these systems, the major points to consider are:
- Reduced costs from the elimination of metal tokens
- The minimal cost of TAGs prorated per use
- No ongoing costs for smart cards
- Comparative costs of TAG readers versus smart card readers
- Value of the added benefits of TAG metrics
- Extended services can be integrated
- Anyone with a phone can participate
From our vantage point, every plane, train and automobile could utilize TAG in one way or another. Certainly, subways, buses and taxis could begin using TAG right now to provide their customers with a convenient alternative.
To find out how you can implement this type of system contact Luna Development.