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

  • Ridesharing market attracts investors in Europe and North America
    December 16, 2016
    Investors are racing to claim a stake in the potential multibillion-dollar ridesharing market. Advances in Technology that aid in the adoption of ridesharing, while governmental policy support, such as high-occupancy vehicle (HOV) lanes and toll-fee waivers, are bolstering market evolution, says Frost and Sullivan. The North American and European ridesharing market will see strong growth, with rideshare operators rolling out new business models to target niche customer segments. And in the European marke
    Read More
  • Suppliers reshape to provide tolling and traffic management expertise
    August 2, 2013
    Jason Barnes examines the trend towards single source supply of complete tolling and traffic management solutions with some senior tolling industry figures. Only a few years back, the major tolling system suppliers were aggressively positioning themselves as one-stop shops for tolling solutions and operations. No sooner has that little flurry of innovation settled than another trend has emerged – tolling companies wanting to become major ITS suppliers as well. Various tolling company seniors have in recent
    Read More
  • ABI Research: DSRC above Cellular cheaper than implementing C-V2X
    February 7, 2018
    Implementing a Dedicated Short-Range Communication (DSRC) above cellular communications is expected to be $13.50 (£9.70) to $15 (£10) lower per Telematics Control Unit than implementing a Cellular Vehicle-to-Everything (C-V2X) solution, according to US-based ABI Research’s analysis of vehicle to everything (V2X). It follows industry discussions which have compared DSRC and C-V2X as technology alternatives for enabling V2X in vehicles to help prevent accidents.
    Read More
  • In-car electronics and user demand for connectivity make case for automotive Ethernet
    January 22, 2014
    According to Frost and Sullivan, the use of Ethernet technology in automotive is gaining pace in Europe and North America. The paradigm shift towards connected cars and associated services such as automotive app stores and connected location-based services is fuelling the uptake. Along with the need to integrate multiple consumer electronic devices, the importance of offering prioritised, personalised services and maintaining brand identity are compelling automotive OEMs (original equipment manufacturers) t
    Read More

Highlighted Content