New revenue streams for transit operators through NFC

NXP has claimed the top spot in the contactless ticketing market in ABI Research’s new market analysis. Shipments of the Mifare range (Classic, Plus, Ultralight, and DESFire) remain strong despite some security concerns around the Classic product. ABI says that overall, Mifare has withstood scrutiny and demonstrates that the highest level of security is not an overriding factor in adoption with the focus on cost effectiveness, convenience, and reliability. The lack of alternative solutions has helped cement
May 9, 2012 Read time: 2 mins
5460 NXP has claimed the top spot in the contactless ticketing market in 5725 ABI Research’s new market analysis. Shipments of the Mifare range (Classic, Plus, Ultralight, and DESFire) remain strong despite some security concerns around the Classic product. ABI says that overall, Mifare has withstood scrutiny and demonstrates that the highest level of security is not an overriding factor in adoption with the focus on cost effectiveness, convenience, and reliability. The lack of alternative solutions has helped cement a strong market presence early on and the depth and breadth of the current product range gives the brand continued success.

Historically, the market has been dominated by proprietary systems such as Mifare and Calypso, although moves are underway that could potentially open up the market. Open loop payments using the EMV platform are a hot topic and there has already been a large scale implementation throughout 1466 Transport for London’s network in preparation for the 2012 Olympics.

The convergence between open-loop payments and contactless ticketing would allow seamless transaction completion between multiple, international networks and also provide a launch pad for other platforms such as NFC.

Research analyst Phil Sealy comments, “The integration of NFC will present new opportunities to transit authorities. By partnering with local businesses, transit operators are able to offer value added services, providing partnering businesses the opportunity to offer consumers vouchers or marketing via NFC handsets. This will generate new revenue streams for transit operators.”

Open standards are coming to market with the OSPT having already published the specifications for Cipurse, a microcontroller-based solution. Pilots are expected to begin in 2012, with other specifications supporting a memory-based and a RFID disposable solution to follow.

Group director John Devlin says, “We expect to see Cipurse deployments start in Europe and then follow in other regions as more cities see the benefit in smarter transportation systems. A broader and more flexible product range will help it to develop like Mifare.”

ABI Research’s “Contactless Ticketing for Transportation” study provides regional shipment data on smart card and disposable RFID solutions by region and product type. The report provides ABI Research's view of the most likely future market changes and developments.

For more information on companies in this article

Related Content

  • Car traffic in London is down but congestion is up, says new study
    May 18, 2016
    London Congestion Trends, an in-depth study of the causes of traffic congestion in London between 2012 and 2015 published by Inrix, indicates that congestion in London is increasing, with journey times in Central London growing by 12 per cent annually. Inrix says this is consistent with data that shows that the London economy and population are growing, which normally results in an increase in gridlock. Further, unemployment and fuel prices are down, both of which usually mean a rise in traffic. Despite thi
    Read More
  • Automotive telematics and smart energy will lead M2M market growth
    March 22, 2012
    According to ABI Research’s new study, Cellular M2M Connectivity Services, the M2M market has become a fully mainstream segment of the cellular industry. By the end of 2011, most major mobile operators in North America, Europe, and the Asia-Pacific region had established M2M business units to focus their efforts in this fast growing market. ABI Research predicts that the market for cumulative cellular M2M connections will rise from about 110 million connections in 2011 to approximately 365 million connectio
    Read More
  • Smart ticketing solution from Init
    October 10, 2016
    Germany-headquartered Init is highlighting the company’s revolutionary ID-based ticketing solution that helps public transport companies to offer their passengers more convenience while streamlining sales. According to Init, other than traditional cardbased ticketing systems, ID-based systems hold the customer data and business logic in the backend system, such as Mobilevario. This approach makes the ticketing system much more flexible. Moreover, the open architecture approach of Mobilevario allows the eas
    Read More
  • MaaS will be adopted quicker in Europe than in the US: here’s why
    December 5, 2018
    A new report suggests that MaaS will be implemented more quickly in Europe than in the US – but why should this be? Ben Spencer examines the arguments
    Read More

Highlighted Content