Cubic’s License of Transport for London’s Technology Sets Unprecedented Performance Standard for EMV Contactless/Mobile P...
July 18 2016 - 9:22AM
Business Wire
New agreement allows Cubic Transportation
Systems to customize transit payment solutions for cities and
transit authorities worldwide
Cubic Transportation Systems (CTS), a business unit of Cubic
Corporation (NYSE: CUB), today announced that the technology
licensing agreement with Transport for London (TfL) positions the
company to deliver an unprecedented level of performance for public
transit payment solutions. The licensed TfL solutions, EMV
contactless chip card and mobile device payment acceptance and
account-based systems can now be available for transportation
agencies worldwide.
Under the agreement, CTS was given the right to adapt London’s
contactless payment system, developed by TfL, and combine it with
Cubic’s own comprehensive NextCity suite of revenue and fare
management systems to provide the best features of both. The deal,
worth up to £15 million (approximately $20 million at current
exchange rates), was announced in London on July 13, 2016.
Cubic sees strong interest worldwide in both contactless/mobile
payment and account-based systems in its core market of revenue
management and fare collection systems for transit agencies and
operators.
“We believe the TfL deal is not only strategically significant
for our transportation business, but will also deliver superior
value for our customers and gives us a significant competitive
advantage in upcoming fare collection procurements,” said Bradley
H. Feldmann, president and chief executive officer, Cubic
Corporation.
Contactless smart card payment is widely used in mass transit,
but the majority of those systems are “closed” and use proprietary
payment cards. The London system supports both proprietary and
“open payments” using EMV contactless cards and mobile devices, and
is compatible with the global chip card standards recently
introduced in the U.S.
“Access to TfL’s technology gives us a major competitive
advantage as the transit sector continues to move in the direction
of open and mobile payments and account-based systems,” said Matt
Cole, president of Cubic Transportation Systems. “Now we can blend
the best elements of technology that have been proven at scale in
the world’s two largest open and account-based payment transit
systems—London and Chicago—both delivered by Cubic, and bring the
best-of-breed to all of our customers as a single, global product
suite.”
Transit agencies can choose to create their own back office
systems or use existing technology from Cubic, but by using the
combined technology from Cubic and TfL, they reduce risk, cost and
time-to-market.
Further, the technology is already proven at scale in London and
Chicago. More than 500 million journeys have been made by more than
12 million unique contactless payment cards from 90 different
countries, as well as using contactless-enabled mobile devices.
Around one in 10 contactless payment transactions in the U.K. are
made on TfL's network, making it one of the largest contactless
merchants worldwide. Cubic also recently announced the processing
of the one billionth contactless transaction on the Chicago Ventra
system launched in 2013.
Outside London and Chicago, CTS also provides smart card
ticketing technology to a number of world cities, including San
Francisco, San Diego, Los Angeles, Atlanta, Vancouver, Brisbane and
Sydney, as well as the magnetic stripe MetroCard system in New
York, where the license agreement teams Cubic and TfL in the
procurement for New York’s open and contactless New Fare Payment
System. Every year, more than 24 billion transportation payment
transactions are processed using Cubic payment and information
systems worldwide.
EDITOR NOTE:
- A redacted copy of the licensing
agreement can be found here
About Cubic Corporation
Cubic Corporation designs, integrates and operates systems,
products and services focused in the transportation, defense
training and secure communications markets. Cubic Transportation
Systems is a leading integrator of payment and information
technology and services to create intelligent travel solutions for
transportation authorities and operators. Cubic Global Defense is a
leading provider of live, virtual, constructive and game-based
training solutions, special operations and intelligence for the
U.S. and allied forces. Cubic Mission Solutions provides networked
Command, Control, Communications, Computers, Intelligence,
Surveillance and Reconnaissance (C4ISR) capabilities for defense,
intelligence, security and commercial missions. For more
information about Cubic, please visit the company's website at
www.cubic.com or on Twitter @CubicCorp.
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Montner Tech PRAlyssa Pallotti, 203-226-9290Account
Executiveapallotti@montner.comorCubic CorporationLaura Chon,
858-505-2181Corporate Communicationslaura.chon@cubic.com
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