REX: Open Payments Hit Success in Dijon

Photo credits: Smart Cities World

FACTS

  • Promising results have been released regarding the open payment system implemented just over a year ago in Dijon. This service lets commuters validate their trips using their contactless payment card.
  • Goals: enable tourists and occasional travellers to rely on the transportation system without having to purchase tickets beforehand.
  • This project has been designed by Worldline, the regional Caisse d’Epargne, Visa and Keolis. It amounted to an overall €500,000 investments.
  • Keolis Dijon Mobilités claims over 80,000 users in less than a year and nearly 300 new customers each day. This option would have attracted 3,900 users one month after launch and 39,000 within one semester.
  • The local transport subsidiary also funded €100,000 in operational expenditure for 765,000 trips.
  • This open payment solution was first limited to the only 2 tramway lines in Dijon, and is now available across the entire local transport network.

CHALLENGES

  • Time saving. This payment method may increase customer satisfaction levels as it puts an end to the need to wait in line to purchase transport tickets, while simplifying the users’ commutes.
  • Technical hurdles. This system wouldn't have had to face serious malfunctions but still is affected by some technical flaws, to do with the time required to adapt some payment cards, for instance.
  • Fraud prevention. This open payment solution may contribute to reducing fraud rates by 8 to 10% (for now, fraud would affect 10 to 15% of all trips). However, no reliable data has yet been provided.

MARKET PERSPECTIVE

  • This open payment launch in Dijon stands out as a technological performance for Worldline. Since this initial trial proved successful, they would be considering applications beyond the transport industry, for day-to-day payments and mobility-related services globally.
  • Payment processors and POS makers are aiming for the transport industry. By way of example, a few days ago, Visa unveiled a universal contactless payment system for transport operators.

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