14 - Transportation

Summary

Transportation users are, by definition, mobile. In general, anything that ties them less to fixed infrastructure increases their mobility and hence helps to achieve their goals and those of the public transport operator (PTO). Improving the mobile experience can also help to improve a PTO’s customer service.

There are three main components to NFC in transportation: information, passenger flow and ticketing. Mobile customers increasingly seek and expect real-time information, and this is in line with an important trend in public transport: in almost every context, more timely and more accurate information reduces frustration and increases passenger satisfaction. Improving passenger flow is mostly about removing unnecessary steps and improving the ergonomics of those that remain. Public transport operators have moved a long way from paper tickets, towards smart cards, e-tickets and even removing the need for a ticket altogether by using bank-issued contactless cards for direct payment at the gate or when boarding; NFC is far from replacing those initiatives but it can replicate each of them with a single reader and a single tap for passengers with the right phone and app.

Using NFC for boarding is a high-volume application that increases penetration and makes use of existing infrastructure. Replacing tickets with mobile tokens removes the need for ticket issuance, which is a major component of the cost of revenue collection, but may need extra readers for ticket inspection.