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

  • Connecticut Transit uses web feedback to improve user experience
    May 27, 2014
    Connecticut champions open government and open data to help fostertransparency, accountability and citizen engagement – and that includes transportation matters as Andrew Bardin Williams discovers. The last thing anyone wanted was to inconvenience or displace others - least of all people who lived and worked in the neighbourhood. Yet, workers in an office building in downtown New Haven, Conn., were tired of shuffling through hoards of people who kept sitting on the stoop to the building while waiting for th
    Read More
  • Cooperative infrastructures, cooperative enforcement?
    March 2, 2012
    A dozen years from now, will enforcement still be constrained by the legislative thinking which currently prevails? Or will the needs of the wider transport community bring about some welcome changes?
    Read More
  • Thales and Mastercard promise 'new technologies' in five-year agreement
    June 28, 2023
    Open-loop payment specialist and mobility company will 'increase global ridership'
    Read More
  • NXP and eSSys To provide ITS technologies for Korean C-ITS pilot project
    July 26, 2016
    South Korea has embarked on a year-long pilot of a next-generation Cooperative Intelligent Transportation System (C-ITS) project in preparation for the 2018 Winter Olympics. Dutch secure connectivity company NXP Semiconductors and Korean automotive electronics specialist eSSys are to be technology partners in the project, which begins this month, promoted by the Korean Ministry of Land, Infrastructure and Transport. NXP will supply eSSys with its RoadLINK V2X chipset, a vehicle-to-vehicle (V2V) and v
    Read More

Highlighted Content