Barclays Cycle Hire

1. Barclays Cycle Hire Understanding payment and release experience Debrief March 2014

2. 1 2 3 Background and Objectives Headlines Cycle Hire Experience 4 5 6 7 Payment and Release Pre Journey Return and Receipt Recommendation

3. Introduction • Barclays Cycle Hire launched in July 2010, and since then has become an iconic part of London. In that time, over 28 million cycle hires have been taken and there are now over 190,000 members • The scheme is now entering an exciting period of transition as the Barclays sponsorship comes to an end in 2015 and Serco, the scheme operator, contract ends in 2017 • TfL are now keen to explore the future of Cycle Hire, with a particular focus on how customers feel ‘in the moment’ of paying and releasing the bikes and what payment / release experiences could meet their future needs

4. Objectives • What does the future of BCH look like and in particular, how can payment and release mechanisms be optimised to meet customers needs and expectations? Business objective • To understand the different types of payment mechanisms used by BCH customers in their lives eg contactless, mobile, apps, pay as you go, online • To explore future trends for payment channels • To explore current pain points and issues with BCH payment – both PAYG and those with registered keys • To understand what level of payment integration customers want across travel modes e.g. same accounts / same methods • To explore how BCH customers would like to make payments for BCH and release bikes in the future Research objectives

5. Methodology 1 2 3 Three x 2hr observation / Intercepts at BCH docking stations (Waterloo, Liverpool St and Hyde Park. Two sessions during the morning peak and one session during the afternoon. All conducted on weekdays Waterloo: Mon 07:30-09:30 3/3/14 Liverpool St: Fri 07:30-09:30 7/3/14 Hyde Park: 14:30 – 16:30 4/3/13 Pre task: payment experiences in context Photographand upload their experiences and concerns of using different payment mechanisms via Memento app Six x 1.5hr Focus Groups Understand their experiences of BCH Payment and Release and explore future needs and potential solutions Tues 11/3/14 Thurs 13/3/14 Mon 17/3/13

6. Focus group sample Total number of participants: 40

7. More detailed sample criteria Customer Segments: • Key users: have registered keys (not annual members) Regular: Use BCH at least once a fortnight . Occasional: Use BCH at least once to every 6 months • Card users: Use debit / credit cards at docking stations Regular: Use BCH at least once a fortnight. Occasional: Use BCH at least once to every 6 months • Early payment adopters: Regular/Occasional BCH users and early adopters of new payment technologies (apps, contactless, mobile, digital wallets) • Non/Lapsed users: Key barrier to using BCH is payment Other recruitment criteria • A mix of gender (split by group) though weighted in favour of men to reflect BCH usage • A spread of ages (from 18-45) • All non rejecters of new payment technologies • All smart phones users, open to/using mobile apps • A mix of payment technology usage (contactless, apps, online, mobile) • A mix of travelling within central zone and /within the BCH expansion zones (West & East)

8. Key Headlines

9. Key Headlines • There appears to be a significant opportunity to increase both frequency of use and overall satisfaction with Cycle Hire by: • Simplifying the payment and release system –a real pain point and barrier for all card (regular and occasional) users. Customers want a one step payment and release process similar to the payment journey of key users • Integrating the payment and release mechanism with other TfL methods of payment e.g. Oyster (and Contactless as a backup) because they’re: • Effortless – intuitive and fast (known brand and user experience) • Secure – small payments, no pin entry and a separation of travel budget from bank account • Integrated with Tfl- fits with existing travel payment behaviour and eliminates confusion on the current payment structure • Adopting new technologies to maximise positive Cycle Hire usage experience – customers are keen to take control of their Cycle Hire usage. There’s a lot of interest in managing the Cycle Hire experience through an app/online account. • Customers express interest in control of every aspect of Cycle Hire, including: identifying docking stations/bike availability, journey planning, pre-payment, tracking usage/expenditure/mileage, gamificationof eco benefit/fitness etc • By addressing all three areas, it would significantly reduce customers payment and release pain points and signify that Cycle Hire is a viable alternative mode of travel and a more obvious member of the TfLfamily

10. Summary: What the ideal customer journey looks like Pre Journey Registration Payment and Release • Two tier online registration process • Simple and anonymous • Full with account accessed via app Oyster/Contactless touch in • Effortless (intuitive and fast) • Integrated with TfL • Secure • Cycle Hire app with Journey planning tools and real-time information Return Receipt • Confirmation of correct return of bikes visually or audibly • Oyster/Contactless touch out • Regular users – receipt recorded on their personalised account via app/online • Occasional users – receipt of payment to be given post-journey via SMS or app

11. Cycle Hire Experience

12. Two different experiences of Cycle Hire exist Card users Key Holders Journeys are more regular with a mix of leisure and commuter rides. They love the sense of freedom and fun and good value that Cycle Hire offers Journeys are irregular, more spontaneous and primarily leisure rides. Enjoy the novelty of finding a different way to get around London The payment and release process will need to support both types of customer experience

13. Two starkly different Payment and Release journeys Key holders Card users Registration Find a docking station One off event Check if bikes available Receive key Wait/queue for terminal Click through multiple screens Arrive at docking station Per trip Pay for it (chip and pin) Per trip Check if bikes available Get a code on paper Insert key, release and ride Punch code in Release bike After a one-off registration, Payment and Release feels quick and effortless Payment and Release feels quite cumbersome and clunky

14. Payment and Release impacts overall satisfaction and frequency “The payment is the worst part of the scheme by far – it’s so clunky and old-fashioned.” (card user) Payment and Release is not a paint point • Key is always on them • Often attached to their set of keys • Payment and Release is a one step process • Bike dock is sole touchpoint • No need to access terminal • Insert key, release bike and you’re away • Impacts overall customer satisfaction of journey and frequency of trips • Hiring a bike is quick, easy and effortless • Seamless transport mode Key holders Card users Payment and Release is a pain point • Payment and Release is a multiple step process which feels lengthy and inefficient • Customer needs to interact with both touch screen on terminal and bike dock • Every time they hire a Cycle • Impacts overall customer satisfaction of journey • Requires significant effort and time to hire a bike • Doesn’t feel seamless, especially compared to other transport modes Ultimately, users want to replicate the customer journey of the Key Holder. It’s quick, has minimal steps and feels effortless.

15. For many, Cycle Hire is not viewed as an integrated member of the TfL family • Cycle Hire is currently perceived as an outlying mode of London transport • Sits outside the core TfL transport modes • It’s viewed as a distant cousin rather than a core family member • Customers are not sure who is responsible for Cycle Hire • Is it Barclays, Boris or TfL? • The current payment and release system do not aid this lack of perceived integration • Cycle Hire feels like it has a different payment system from other transport modes • Eg Oyster, Contactless accepted on bus and The Tube • Able to use weekly/monthly/annual seasons tickets on other modes “I work for Barclays and we used to get people coming into our branches all the time trying to make inquiries about the bikes” “Since it’s not on Oyster it doesn’t really feel connected to the rest of the system” By updating the Payment and Release system, there is an opportunity to make cycle hire feel more integratedand increase the frequency of consideration

16. New payment technology is a growing expectation… • More and more, new payment technology is being used in everyday London life • Contactless (in particular) is greatly appreciated • Simple, one-step payment process • Minimal fuss, minimal hassle • There is an appetite for new payment technologies to expand into ever more avenues of London life E-Wallet App Payment Contactless “Bus journey paid contactlessly from my Barclaycard” “I use the Asda app to do my grocery shopping” “I bought some food in marks and spencer, I used contactless as I was only buying a few items.” “Paid for a women's top from eBay with PayPal.” Cycle Hire is perceived as an iconic, modern-day, progressive scheme and a great fit for new payment technologies

17. Security is a necessary hygiene factor • Despite the appetite for new, expedient payment technologies, customers are still very much preoccupied with security • It’s an ongoing concern • Media abound with stories of stolen funds and identities • Across payment types, there are a number of factors that help customers feel more secure • Capped amounts • Eg can on spend up to £20 on contactless payment • Separation of payment • Payment systems which are linked but separate to your bank account • Eg Oyster, PayPal “I love the speed of contactless, but it makes me nervous - I read that contactless payment can be hacked with very simple components” “Paying with my Starbucks app is so quick and so easy. The only problem I have to use my card to reload the money through the app and I worry about its security” “I think contactless is a great way of paying because of how quick and easy it is, but I do worry in case I drop my wallet or my card” The new payment and release system for Cycle Hire will need to look and feel secure to assure customers

18. Pre Journey

19. Customers want Cycle Hire to be integrated into journey planning and better info about bike availability • Lack of information – many unsure where to find and how to find docking stations. Also unclear as to how many bikes are available/operational (both in the moment and online) • Lack of integration: TfL journey planning tool/other journey planning tools do not offer Cycle Hire clearly as a travel mode WHAT CUSTOMERS WANT • Cycle Hire incorporated into journey planning tools: • Suggested as a viable alternative mode by TfL when planning journeys • Details of closest docking station location • Real-time information: Availability of bikes to be clearly signalled at docking stations through more audio/visual cues

20. Customers already embracing pre-journey information Opportunity for TfL to develop or endorse and recommend a go-to, TfL branded cycle hire app

21. Registration currently not meeting customer needs for Cycle Hire • Confusing – AllCard User’s understanding of registration is confused • Misconception that registration is tied to an annual subscription • Which they don’t want to pay for • Unclear benefits – For Key Users, the benefits of registration are not understood or appreciated • Regular/registered users highly value the minimised payment & release process, but do not see benefits of registering beyond this WHAT CUSTOMERS WANT A choice of a two tier registration system: • Basic registration (anonymous) Simple chip and pin registration of Oyster/Contactless Card at terminal • Allows for spontaneous use of Cycle Hire • Fits with needs of more Occasional user • Fullregistration (Customer information) Online registration of Oyster/Contactless card accessed via an app/online • For the more regular customer • Creates a customer account with additional benefits • egability to track usage and expenditure • Part of TfL account

22. Opportunity to maximise completion of online registration • To encourage as many people to sign up for registration we need to remove any confusion • Ie registration is not the same as a subscription. There is no annual or monthly fee • And we also need to clearly communicate the benefits in signing up: • Faster payment and release • Personalised account with all the tools and info you need pre, during and post journey 1. Faster payment and relese • Communicate to customers that by registering they will speed up Payment and Release process when hiring a bike • Provide a personalised account with clear benefits ‘pre, during and post journey’ • Pre-journey • Preload payment of Cycle Hire • Journey planner with Cycle Hire • Closest and docking station location • Real-time information: availability of bikes • Info on preferred docking station/s • During-journey • Journey timer • Post-journey • Record of journey (date, time and final payment) • Ability to print online receipt • Engaging and motivating info… gamification of eco benefit/fitness (eg miles per trip, total miles cycled, calories burnt, furthest travelled by bike etc) • Reporting of fault function • Comparison of expenditure across modes 2. Provide a personalised account

23. Payment and Release

24. Customers find the payment structure confusing The current payment structure does not feel intuitive to customers • Confusing • Feels like you pay twice: • Once for an access period • Once for a per use charge • Unclear what 24hr/7day access entitles • And how that access period fits with 30mins ‘free’ • Card Users also frequently assume that acquiring a Key requires monthly or annual subscription • Lack of consistency with TfL • Cycle Hire payment structure not felt to be aligned with other structures in TfL travel • Pay once only…per trip, one-day travelcard, weekly pass, monthly pass, annual pass • Time limit is not on any other mode WHAT CUSTOMERS WANT Simplification and Consistency with other TfL payment structures “I had no idea you didn’t have to get a monthly subscription to the scheme to get a key…I’m going to register as soon as I get home”

25. The current payment system for Card Users is a significant pain point For all card users, the payment system feels at odds with the bike journey experience • Slow – felt to require too many steps to pay. Does not utilise up-to-date technology to maximise speed of payment • Frustrating – perceived as an out-dated system and not like payment systems utilized on other London transport • Unsafe – concerns about getting credit/debit cards out on streets, particularly at night WHAT CUSTOMERS WANT • Effortless • Fast… Payment and Release collapsed into a one-step process. • Intuitive… process is simple and does not require explaining. • Easy… can pay and release with something I always carry on me • Secure • Small payments, no pin entry • Separate from bank account (able to budget for travel) • Integrated • A payment system that fits into their London travel payment world

26. Ultimately, customers want the benefits of Oyster transferred over to Cycle Hire Consistently, across both Key and Card Users, customers desire Cycle Hire to be integrated with Oyster: • Meets core needs of being effortless (fast, simple and easy) and secure • A familiar brand with a familiar ‘touch in touch out’ user experience • Oyster (both card and yellow card reader) is instantly recognised and understood • It’s strongly associated with TfL • And the benefits of Oyster are universally known • Connects ‘my’ London travel • Incorporates Cycle Hire into my wider travel behaviours • Payment is contained within a single TfLaccount “If I could use Oyster it would make it so much quicker – you could just touch in to get the bike, then touch out at the end” “Oyster is travel in London. It’s the tube , bus and tram. If cycle hire were to use Oyster card it would say Cycle Hire is a part of TfL” “I can’t understand why they haven't already allowed us to use our Oyster cards? If they did I would use it so much more”

27. Contactless felt to be a good back up/alternative to Oyster • Contactless is perceived as necessary as a back up when Oyster is devoid of funds • However, doesn’t share the same benefits of Oyster • Eg (connection to wider system/usage history/separation of funds etc) • Meets core needs of being effortless and secure. • Fast, one-step process • Already in wallet, simple touch-in, touch-out process • Secure as has a £20 cap • A more familiar method of payment • Retailers and other and TfL modes already offer contactless, helping customers feel more comfortable using this technology • Consistent offering of TfL • An expectation that more and more elements of TfL will offer contactless “Over the last few months I’ve become really confident using contactless. It’s great and if I run out on money on my Oyster, I’ll use it on the bus” “It’s available everywhere and the way everything is going. It’s even available on the bus”

28. Release working really well for Key Holders but less so for Card Users printed codes feel outdated and time consuming • Key Users happy with the current release system • Fits with their needs of Cycle Hire • Effortless, easy to use and fast • One-step Payment and Release process Key Holders Card Users • At a basic level printed codes do the job, but are perceived negatively • Process is time consuming and outdated • Printing on paper feels out-fashioned and wasteful • Uncertainty as to whether code is punched-in • No physical or audio feedback to confirm codes are punched in and code is correct “I tried to use the Barclays bikes twice but both times I had problems with using the stupid codes – I gave up after that.” “I feel really smug when I’m at a docking station and I see people struggling with their printed codes” Card Users want to mirror the Release experience of Key Holders

29. The ideal payment and release solution is a one-step ‘touch in, touch out’ payment that feels integrated with TfL WHAT CUSTOMERS WANT Payment and Release collapsed into one-step • Effortless – release and go. A process that feels aligned with the freedom of the bike journey • Fast – Tap/touch-in and release. Doesn’t involve multiple steps • Intuitive and simple to use - no uncertainty as to whether bike will release or not • Integrated – with other TfL payment modes

30. Return and Receipt

31. Customers seek clear confirmation that bikes have been returned successfully Docking Cycle Hire bikes often a concern. Especially for occasional users • Uncertain of whether they have returned and locked their bike successfully • Concerned about being overcharged • Have heard negative experiences of incorrectly docking bikes and being charged for extended usage WHAT CUSTOMERS WANT • Audible/Visual confirmation that bike has been successfully returned and docking process is completed • ‘touch out’ function would signify end of their transaction • Intuitive as replicatesfamiliar usage behaviour of Oyster/Contactless “I’m always worried about the bike not being docked correctly and having to pay £100 or more”

32. Current paper receipt process seen as wasteful and old fashioned WHAT CUSTOMERS WANT • Regular users are keen for receipts to be recorded on their centralised online account via an app • Less frequent users want the receiptof payment to be given post- journey via a simple SMS or email • Provides sufficient reassurance that they haven’t been overcharged • Receipt feels somewhat old fashioned and introduces another unnecessary step in the process • The length of the receipt also feels wasteful and unnecessary

33. Recommendations

34. Recommendations moving forwards • Develop or recommend and endorse a definitive Cycle Hire app (also accessible via web) with location/availability and real-time information Pre Journey • Create a two-tier registration • Occasional users – chip and pin at terminal, anonymous • Regular users – online registration process which culminates with a personalised account Registration • Integration with Oyster (and Contactless as an alternative) • Touch in to pay and release bike • A payment structure in line with other TfL offerings Pay and Release • Audible/Visual confirmation that bike has been returned (Touch out with Oyster) • Regular users – receipt linked to account • Occasional users – SMS (or email) receipt Return and Receipt

35. Appendix

36. Biometrics is seen as futuristic yet limited • Bio metrics seen as futuristic and secure • Feels like brand new technology • And highly secure • Your fingerprint is completely unique! • But there are some limitations (actual and perceived) and concerns • Performance is reportedly intermittent • Some who already experienced using (egiPhone 5S and laptop biometric) talk about needing to ensure entire fingerprint is scanned and it only working 1 in 4 times. • Concern around giving highly sensitive data to TfL • Perception that this is an unnecessary exchange of personal details a casual mode of transport • Heightened by their confusion over who runs the scheme… ‘would Barclays have my fingerprint?’ • Perceived potential for vandalism for such a sensitive piece of kit • And most importantly, biometrics not felt to offer the benefits of integration that Oyster and Contactless does • Eg payment and release collapsed into a single step • All my travel payment in one place “I had this at work and the scanner only worked every 1 in 4 times – you have to do it at the right speed and get the whole finger scanned or it doesn’t work”