FPT IS partners with Mastercard to adopt payment technology in smart ticketing and traffic management systems for Metro Line 1 in Ho Chi Minh City
FPT IS recently signed a Memorandum of Understanding (MoU) with Mastercard to boost the deployment of the open-loop EMV electronic payment system and citizen ID card-based payment application for Metro Line 1 (Ben Thanh – Suoi Tien) operated and managed by Ho Chi Minh City Urban Railway Company No. 1 (HURC1). This cooperation marks an important step in merging the “cashless payment” integrated with smart payment technology into the public transport system in Vietnam, enhancing the public service experience for millions of users.
Application of payment technology to smart ticketing and traffic management systems
This MoU between FPT IS and Mastercard sets the starting point for the development of e-ticketing technologies and the open-loop EMV payment system in the public transport sector. The adoption of the citizen ID card-based payment solution and the smart open-loop EMV payment system is expected to provide passengers with the most optimal and advanced ticket purchasing experience, especially for those who are entitled to preferential fare exemptions.
Deploying the payment system based on the open-loop EMV model enables users to make ticket purchase through their bank cards, application’s QR codes or their ID cards. This helps form commuters’ cashless payment habits, encouraging public transport use and fostering awareness of environmental protection. The system will also allow HURC1 to digitize its data management, increasing the efficiency of planning, allocating, exploiting and operating appropriate service routes.
The open-loop EMV payment system and payment via smartphone application deployed by FPT IS for Mastercard will be certified for security and obtain certificates according to international payment standards, to ensure the account registration, verification, and payment are strictly controlled. The diverse open-loop EMV ecosystem includes: MegaApp application, citizen ID card management system, e-wallet and all types of EMV cards, bank cards available on the market, and others. It helps passengers save considerable time spent on ticket purchase, and allows the use of EMV cards for payment with ease. Electronic purchase and payment of metro tickets will save commuters’ significant time compared to traditional methods, as the need for small change and queuing to buy tickets, as well as the need for storage and management of multiple types of ticket cards are eliminated. In addition, the new method enables customers to access their travel history, track their travel behavior, stay updated on promotions, and manage their expenses effectively.
Boosting the deployment of the open-loop EMV electronic payment system and citizen ID card-based payment application for Metro Line 1 (Ben Thanh – Suoi Tien)
With an expected number of 40,000 passengers per day in the initial phase of the metro line’s operation, it is crucial to optimize its ticket purchase and payment processes. Ms. Van Thi Huu Tam, Deputy Director of HURC1, stated: “While the Metro Line 1 is about to enter the commercial operation phase, and our goal is oriented towards comprehensive digital transformation, we expect to develop and adopt modern payment solutions to serve our passengers. This effort aims to offer convenience, speed and safety to our customers when using public transport in Ho Chi Minh City”.
Mastercard Asia/Pacific representative also addressed his opinions, emphasizing that the e-Ticketing & open-loop EMV electronic payment system will create a breakthrough in enhancing people’s booking and payment experience when using the public transport system. With the advanced open-loop payment system present in 390 countries, Ho Chi Minh City residents can now easily pay for travel tickets using bank cards or smart devices such as mobile phones and smart watches. “Mastercard and its partners aim to provide users with a sense of security, satisfaction and a smooth experience. We believe that, the combination of technology and experience between Mastercard and FPT IS will made this smart management system a model for other public transport projects in Vietnam and the region”, said Mastercard representative.
Mr. Dang Truong Thach, Executive Vice President of FPT IS, expressed his expectations for this cooperation: “The project not only benefits Ho Chi Minh City residents in public transport use but also opens up great opportunities for the entire city to transform into a “cashless” city, empowering it to integrate with other countries in the region. On this journey, we are honored to partner with Mastercard to pioneer the development of e-Ticketing service and open-loop EMV payment technology for HURC, to offer satisfactory and effective use of public services to the people in the city. FPT IS believes that the combination of advanced technology and major payment partners, along with the determination of Mastercard and HURC, will enable passengers to enjoy distinguished experiences compared to those they encountered with previous public transport services, thereby reducing energy consumption, moving towards the city’s green transformation goal.”
Mr. Thach also voiced his hope that the partnership between FPT IS and Mastercard would not stop at the deployment of Metro Line 1’s payment system, but go towards a longer-term vision: developing a smart and sustainable transportation ecosystem for Ho Chi Minh City. The two companies pledged to continue to work closely together to provide optimal solutions, which will aid in the development of modern urban areas and improvement of the quality of people’s life.
According to the signed MoU, FPT IS and Mastercard will be strategic partners in implementing cashless payment technology in the public transport sector in Ho Chi Minh City. The next goal will be expanding the solution throughout Vietnam, creating an important turning point in the development of high-tech solutions for public transport infrastructure in the country.
