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Billing via mobile and by travel distance: This is how we will pay for public transport starting tomorrow
The use of payment apps on buses and trains is underway, more than a year after the auction closed.
So far, the reform has been repeatedly postponed, due to concerns about users' privacy, which have not yet been removed.
How is it going to work, who are the big earners, how much money will we save and what will happen with the multi-line?
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Public Transport
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Israel Railways
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Keenan Cohen
Monday, 14 December 2020, 01:51 Updated: 20:39
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The new Mobit app (Mobit)
The new reform of the means of payment for travel by public transportation in Israel will be launched tomorrow (Tuesday), more than a year after the closing of the tender and the announcement of the project.
As part of the reform, three new payment apps will be available to the public, thus aligning the country with advanced public transportation systems in the United States and Europe.
In anticipation of the entry of those widgets into the market and the changes they are about to bring about in the nature of the use of public transport, these are the important things to know about the new service.
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Scan the barcode - and drive.
A soldier gets on a train in Tel Aviv (Photo: Reuven Castro)
Do the apps replace the multi-line card and what is the difference?
No.
The multi-line card operated by Pisentra will continue to be used.
This is to address populations that are not interested or able to use the apps, such as those who do not own a smartphone or travel in areas where the rate of using the apps is not cheaper.
The multi-line allows for two main payment methods: charging an accumulated amount in advance and using it until the end of the balance, or purchasing a domain subscription on time for a specific area of use.
In apps, on the other hand, the billing scheme is smarter and knows how to allow flexibility in the travel areas, as well as charge a fee according to the new tariffs.
Which apps will come into use?
Six companies approached the original center, which was published in September 2019, and about a month later the three winning companies were announced: Rav Fes (from Hop-on and Facebook in collaboration with Discount Bank), Mobit (from Mobit and Pango, in which Bank Hapoalim is a partner) and a third app called "ANYWAY" from Isracard.
These widgets will be joined in the future by a fourth non-commercial competitor of the Ministry of Transportation.
How do you activate travel using the app and how is the payment made?
After downloading the app to your mobile device, registering and entering a credit card for debit, every time you get on the bus or at the train stations, a barcode sticker is scanned using the app - and passengers.
At train stations, passengers will scan the barcode at the entrance to the departure station and at the destination station, and on buses the scan will be performed upon boarding.
Travel confirmation in the Mobit payment app
Unlike the pre-loaded multi-line card, the applications will be summed up at the end of each month for the cumulative amount of the trips made, to which the various discounts (senior citizens, teenagers and students) will be applied.
In addition, the user will be presented with the best route in terms of price for him.
The passenger will be charged via credit card.
How will the cost of travel be determined?
The tariff method in applications divides the trip into six codes, according to the key of the distance traveled by air - from 15 kilometers to more than 250 kilometers.
Each of the codes has a fixed fare and a daily payment ceiling.
In addition to the distance codes, the apps will allow you to receive discounts according to the cumulative costs of travel made by the customer.
Those who travel in amounts of NIS 400-200 will receive a discount of about 25% - up to a maximum amount of NIS 150.
Those who travel in the amounts of NIS 1,000-400, will receive a 50% discount - up to a maximum amount of NIS 450.
Those who travel more than a thousand shekels will receive a 75% discount - up to the amount of 530 shekels.
Payment will be made via mobile.
A woman waits at a bus stop (Photo: Reuven Castro)
One of the criticisms of the reform has been that the distance tariff model discriminates against peripheral localities, where point-to-point distances are longer, while residents of the center and major cities will benefit from discounted tariffs.
The outline of the discounts according to the monthly amounts should balance this gap, but the examination of the outline will be in practice only according to the profile of use.
In contrast, the apps are much easier and more accessible to the casual user, who is not required to issue a multi-line card and load it separately.
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To the full article
Updated discount stairs:
Up to a payment of NIS 200 - no discount
With a payment of NIS 400-200 - 75% of the discount up to the amount of NIS 150
With a payment of NIS 1,000-400 - 50% of the discount up to an amount of NIS 450
With a payment of NIS 1,000 or more - 25% of the discount up to the amount of NIS 530
Not all privacy issues have been resolved.
Screen in the Mobit app for payment on public transportation
How do I know which track is best for me?
Apart from the calculation at the end of the month, it runs a multi-pass app from a travel calculator, which allows you to enter an origin and destination and get the different prices in each of the travel options.
It is likely that the other apps will also offer a similar service in the future.
How do we maintain the privacy of our information?
Currently the alternative for those who want to use without providing information, and this is also the recommendation of the Privacy Protection Authority, is to use an anonymous multi-line.
This option is not available for use in commercial applications, at least until the launch of the Ministry of Transportation application.
What is the interest of the app operator?
The three operators approached the tender in a "zero-sum" model.
This means that unlike Piscentra, a multi-line operator that receives clearing fees for use, the companies waived the profit from each such transaction in advance.
This is because the type of payment that is starting to become more and more common is the "digital wallet".
These apps will be among the first attempts to implement the transition to payments made via mobile, not only in public transport but in many other businesses.
The companies, which will gain a foothold in the market of about three million trips a day, will have the opportunity to establish themselves in the field.
Some companies will also be happy to offer customers complementary transportation services, such as scooters and electric bikes, and will benefit from reciprocal agreements with the companies that operate them.
It will be possible to continue using multi-line.
Payment stations at the train station (Photo: Reuven Castro)
Another controversial aspect, to which a satisfactory answer has not yet been given by the Ministry of Transport and Operators, is the area of privacy.
Users' location data, their permission to display advertisements, and other privacy violations are valuable assets for these companies.
In other words, in the case of apps, with all the convenience - the passenger is not the consumer but the goods.
How to choose the best app for me?
It is not possible at this stage to decide which of the apps is better, but each of them may have these and other benefits for a particular type of user.
Hence, personal preferences of user interface or ease of operation or habits as of current users of Mobit or Hop-on, will be the significant factor in choosing the widget.
Also, it is possible that the customers of the banks behind the applications will stick to the operator they know.
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