Bank Card Payment in Public Transport in Lagos

In Lagos, Nigeria, we deployed an EMV card payment solution in public transport buses. Together with our partners Sterling Bank and Mikroelektronika, we implemented the first such EMV solution on the African continent.
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Customer Need

The MOL Group is updating and unifying its portfolio of payment terminals while centralizing the processing of all electronic payments. This greatly simplifies transaction processing across its network of 1,900 service stations. The Switchio product is delivered to the client as Software as a Service. An integral part of the new system is the Ingenico Tetra hardware platform for both indoor and outdoor POS. Switchio supports several thousand hardware terminals and processes millions of electronic transactions monthly.

Sterling Bank, headquartered in Lagos, Nigeria, aimed to significantly penetrate the market with contactless bank cards and attract high-value clients. The upcoming modernization of Lagos’ public transport presented the perfect opportunity for the bank to participate and become the operator of new bus routes.

The city is referred to as a megacity of the future, with a population of around 15.5 million today. High-quality urban transport is thus a critical point for its development and brings enormous commercial potential. The bank’s primary goal was to launch new, modern bus lines and eliminate fare payment issues. There were frequent cases of cash theft and ticket fraud.

The solution was to introduce cashless fare payments using EMV payment cards issued by the bank. The model for this was the system currently operated in the British capital. Sterling Bank needed experienced partners with the necessary know-how to swiftly implement and ensure smooth operation of a similar system in Lagos.

After a thorough analysis of potential suppliers, the bank chose our company and invited us to implement a solution where passengers use a contactless EMV payment card to identify themselves directly on board, with fares charged using a Check-in/Check-out model.

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Switchio Solution

The implementation project began in November 2017, and the acceptance protocol was signed four months later in March 2018.

1,000 contactless payment terminals were delivered for installation into vehicle validators, each equipped with a suite of terminal applications developed in-house by MONET+. These applications currently support the acceptance of contactless EMV cards and contribute to the routing and security of individual transactions.

As a service, we provided several specific system components and modules from our shared Switchio infrastructure.

Key Solution Components

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POS management system

Providing, among other things, network management and terminal control functionalities.

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Authorization switch

Responsible for transaction processing, terminal key management, and storage of detailed transaction data.

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Fare Comm

A module ensuring communication between terminals and central systems.

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Fare Risk management

Designed for processing transactions in offline mode.

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Fare Collect

A module where payment transactions are aggregated under the card number (PAN) and sent for settlement.

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Fare Blacklist

A feature used to minimize losses from invalid or blocked bank cards.

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Fare inspection

A module providing inspectors with special devices that can read bank cards and transform the PAN into a token.

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Fare web portal

A module offering detailed reporting on used cards and terminals.

A vital part of the solution delivery includes management and monitoring services, along with a 24/7 Helpline for collecting and resolving incidents and issues.
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Benefits for the Bank

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Increase in the number of bank clients
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Increase in the number of issued contactless bank cards
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No investment required for authorization center infrastructure
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Straightforward pricing model for Switchio infrastructure services
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Flexibility and openness to connect with other entities
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Future scalability for additional business lines such as e-commerce, in-store POS terminals, etc.

Benefits for the Transport Operator

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Faster cash flow across the system
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Savings across various areas
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Elimination of cash—no theft or cash fraud
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Reduction in fare evasion
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Transaction aggregation brings savings on fees and allows for fare discounts for passengers
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Elimination of paper tickets
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Savings on printing and distribution services
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Significant acceleration of boarding process—passenger check-in within 1 second
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The system does not require constant vehicle connectivity to the internet
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