For many years, public transport operators have been using paper-based tickets.
In the early 2000, smart card-based solutions were adopted for ticketing application
because most of the IT systems were off-line and what was needed was a portable
electronic ticket that could be authenticated off-line, be secure and not be easily
replicated. Undoubtedly, the smart card was the solution at that time but had its
own limitation of being transferable and requiring high investment.
Increase in demand for open payment solutions, need for virtually limitless fare
policy/structure implementation and increase in the life cycle costs of contactless
smart cards are driving the transit operators to focus on other cutting edge and
patron-friendly technologies in the arena of Automatic Fare Collection (AFC) system.
Near Field Communication (NFC) is one of the emerging communication technologies
in this direction.
NFC enables electronic devices, including mobile phones and payment terminals, to
communicate with one another for payment and other related transactions. The technology
is simple; it is a short-range, low power wireless link evolved from RFID technology
that can transfer data between two devices a few centimeters from each other. Its
built-in security makes NFC an apt choice for mobile payments, thus gaining prominence
in the smart phones.
The smart phones are increasingly being equipped with NFC capabilities which can
be used in contactless payment systems. This can replace the currently used Mag
stripe cards, Chip cards, RFID-based cards, Paper tickets, etc.
For long, fare collection in public transport systems have been based on paper ticketing
which comes with its inherent drawbacks like non-environment friendliness, patron
inconvenience, and revenue loss due to no patron gating and inconvenience of cash
handling.
To overcome such challenges, the combination of NFC with mobile connectivity enables
an array of new digital services in the areas of ticketing system, payment systems
and access control.
NFC (Near-Field Communication) technology allows a sustainable business case for
operators in public transport - taking customer convenience to the next level.
How it works..
Before the start of journey, a patron can check the fares online, buy ticket, reserve
seat, pay for parking and download ticket to phone. Once the patron reaches the
station, s/he can tap the phone on NFC terminal at the gate to park the vehicle.
To start the journey, a patron can tap the phone on NFC terminal, redeem ticket
and board the train. At the end of journey, patron simply taps the phone at the
exit gate.
NFC-enabled phone can hold multiple payments applications, allowing traveller to
select the method of payment such as Credit, Debit, Travel pass, Pre-paid tickets
etc. This also facilitates payment in multi-modal transportation scenario enabling
the patron to pay in Metro or Bus or any other transportation system available without
the inconvenience of cash handling or long queues.
Operators are also benefitted with minimal investment on cards and tokens, unique
identification of patrons, lesser staff for operation and cash handling.
Benefits to all industry players and transport passengers
- Fast, accurate and transparent ticket validation
- Greater passenger satisfaction - Ability to buy tickets via mobile & avoiding queue
- Users are able to add resources on demand as and when needed with no downtime
- Lower investment by Operators for Cards and Tokens
- Lower Sales & Distribution and O&M costs
- Cross Promotion possibilities
- Supports Multi-modal transportation
- Environmental Friendly
Today, mobile phone manufactures, mobile networks operators, financial institutions
like banks, information technology firms and automation companies are engaged in
increasing their share of the pie. Also, pilot projects are being implemented in
the transportation sector in Germany, UK, Italy, France, Spain and Japan. In general,
they have demonstrated that the technology works in a public transportation environment.
A well-implemented mobile NFC solution could offer a compelling experience that
will encourage patrons for greater use of public transport.