Do we have any idea how much the Metropass costs the TTC to operate, and how much an open payment system would cost?
Have they even done a detail report on this matter? I highly doubt it.
For metropasses they currently pay for:
printing the metropasses
write the magnetic data to the strip
distribute it to all sellers
accept the 2-5% charged by Credit card companies
pay for the extra collectors to sell them
maintain the vending machines
collect the leftovers afterwards
accept that fact that fake passes exist
All of these steps can be automated and passed onto presto. At the beginning of the month they're need a lot more servers to handle the extra load that people are buying their passes. This would cause a surge with the TTC customers compared to now. Presto would have to suck up these extra cost or have someone else pay for them.
An open payment system could mean there is no central server. The cost associated with presto's server would disappear. I thought TTC wanted people to just pay with credit cards so the distribution of cards will be the bank's problem. The reader would just be a payment terminal. Transactions would appear on your CC statements. People without a CC can just get a cash card and reload that.
TTC's transfer system might need a central server. It could still use CCs or a special card based on CC technology.
Chicago for example uses it's own card:
http://www.transitchicago.com/riding_cta/how_to_guides/payingyourfare.aspx
About open payment systems:
http://www.xerox.com/downloads/services/white-paper/open-payment-fare-systems.pdf
The whole point with an open payment system is to let the private sectors (banks) do the development instead of spending $700m for this backwards presto system. TTC would likely have to pay for all the payment terminals but won't be on the hook form the middleman (Presto/Metrolinx).