Next Generation of Ticketing

The new ecosystem for next generation eTicketing powered by NFC technology, as layed-out in this document, is set to allow for the take-off and break- through of electronic ticketing in public transport by being both affordable and value adding.

The key success factor for bringing this new ecosystem to life is a partnership between the three industries of public transport, telecommunications and financial services, rather than between single enterprises in these industries.

Similar to existing approaches, next generation eTicketing solutions need to be developed from a market, customer and business case perspective, not from a technology perspective. However, on the technology side, a paradigm shift needs to be adopted by the current public transport actors, leaving behind the conviction that the complete ticketing infrastructure must be proprietary and under public transport’s ownership.

To make such a collaborative system happen will require the resolution of some remaining questions. The involved industry players do in particular have to agree on a mutually sustainable commercial model within this new ecosystem. However, recent developments across Europe show rapid progress in the formation of these industry partnerships. For example, early in 2007 three large telecom providers have started a cooperation with the most important national transportation operators to build a national NFC enabled eTicketing system in France.

In Germany several key players in the transportation market are also ready to move forward with NFC eTicketing.

In any case, all processes, contractual relationships and technology solutions must ensure that the public transport providers control and own the relationships with their customers, including their trip and mobility pattern data.

Deploying NFC technology in combination with a cross-industry collaboration model appears to allow for the break-through of nation-wide eTicketing schemes in Europe. Now is the time to act for all parties—for public transport operators, telecommunications companies and financial service providers. Only first movers will be able to participate in the large market potential NFC technology will offer in the years to come.

 

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