The Knesset's Finance Committee held a discussion headed by Shas MK Yakov Margi on the privacy concerns regarding the new payment apps for public transportation that are expected to enter service on June 25.
The discussion was held at the request of Yesh Atid MK Idan Roll and Likud MK Sharren Haskel, against the backdrop of Transportation Ministry regulations allowing payment contracts for public transportation through applications, some of which that will be paid by travelers through private companies.
During the discussion, Margi who headed the discussion, said that former Transportation Minister Bezalel Smotrich signed the regulations right before the end of his term. He also added that the regulations raise privacy concerns regarding travelers, database and the population that does not use advanced apps.
Furthermore, he wanted to make sure that the drivers, that are no longer dealing with collecting payment, will not be affected by the move.
National Public Transportation Authority director Amir Asraf said that the intention behind move is to give an additional high-quality service for public transportation users. He added that three private applications have been chosen and one public application. The use of the applications is intended to save the State money, which will be later invested back into public transportation services.
Margi said that the move is a solution for only works for a certain demographic of the population, and asked to know what the benefit was for the private companies. Asraf answered that he isn't familiar with the business model of the deal, however noted that the deal allows for a public transportation user to order an electric scooter or train ride in the same transaction.
As for the privacy deal, a representative from the Privacy Protection Authority, Eden Avraham said that the authority was only made aware of the matter from the invitation to the discussion. The Knesset's Finance Committee legal advisor Itai Atzmon, said that they forgot a small detail, and it's the public's fundamental right to privacy. He explained that by virtue of a goods and services order arranged for the Transport and Finance Ministers to regulate the orders, however it is doubtful that this certification really allows for ministers to regulate, even indirectly, the forms of payment. "Arrangements have been established that could but the database at risk of leakage. This is not a sufficient way to regulate such a sensitive issue, and the issue is worthy of having gone through proper legislation," Atzmon said.
Roll said that the issue could slip through the fingers of the Knesset, and added that the alternatives weren't looked into. "Nothing comes for free, and if it is free, it means the product is the citizens," he said, adding that the private applications should not be used until there was a public application. Haskel said that we're already after the electoral systems and the issue should go to primary legislation for the benefit of parliamentary oversight.
Finance Ministry representative Yael Abadi said the app would save some NIS 100 million annually, NIS 60 million of which being the cost of transit and an additional NIS 40 million being a charging fee. According to Margi, it would only be possible if the Finance Ministry expects Rav Kav to be abolished altogether. According to Roll, the amount of money expected to be saved may range between NIS 100 million to none. MK Yevgeny Sova said any measures should take the senior population into account.
"We have fulfilled all requirements deemed necessary for the tender, including clear restrictions regarding databases," IsraCard Deputy CEO Uri Alon said, adding that the company's motivation for applying for the tender was that "public transportation is a calatist for users switching to in-app payment. In half a year, Apple will come here with its advance payment system and IsraCard cannot stay behind. "
According to Alon, the company does "not receive direct profits from the apps, but if IsraCard is associated with an advanced payment tool, it can help us. Today, credit companies know a great amount of information about their customers and do not misuse it. We have no intention of using it illegally and irresponsibly. This is now what we will profit from."
"If it is free, what is the motivation?" responded Margi. "Being in the frontier of digital payments," replied Alon. "The answer is market education for commercial purposes," said MK Roll. Israel Post representative Orly Siman Tov said Rav Kav will always remain necessary, telling the committee that "using the app will not cancel or replace Rav Kav, [as] most of its users are Ultra-Orthodox Haredi Jews, youth and Arab citizens. It will deprive large groups of public transportation users."
Rav Kav Online CEO Moti Maymon said barcode scans were not suitable for public transportation, adding that Al Hakav (Rav Kav's "On The Line") charging stations will not be shut down, and that no money will be saved in that regard.
The committee is focused on making public transportation more efficient and accessible, said Margi, adding that it "has found that promoting the new applications designed for paying for public transportation raises great questions concerning the privacy of the users."
According to Margi, "the committee believes the fact such an issue was not promoted in coordination with the Privacy Protection Authority as grave, and believes it should be regulated in general legislation. The committee calls on the Transportation Ministry to freeze the activity of the apps until the privacy issue is resolved, all the more so until a public app is created."
The committee "demands the Transportation Ministry transfer it written data and information regarding the effect of the application on travel costs of periphery residents, the disadvantaged population, senior citizens, haredi Jews, the youth and others," said Margi.
"The committee demands the Transportation and Finance ministries give it a financial analysis of the apps' use, including the budget issue and the users' savings, as well as clarifications on how the use would not harm the drivers' salaries." According to Margi, "unfortunately, the discussion is not over – not because of limited time, but because the lack of clear answers from the Transportation and Finance ministries."
Translated by Celia Jean and Leon Sverdlov.