Why There is No Technological Silver Bullet to Address Mobile Ticketing

Mobile ticketing is often referred to as an emerging market due to the significant growth opportunities for mobile ticketing solutions therein. However, the fact remains that mobile ticketing solutions, be they full-scale operations or pilot, have been in commercial use for more than 10 years, including Japan’s well-established FeliCa protocol; open-loop mobile acceptance in Amsterdam, London, Delhi, and Mumbai; QR code trials in China and other parts of India; and a closed-loop MIFARE 2GO mobile solution currently in use on the Las Vegas Monorail in the United States.

Despite its slow start and uptake, the market for mobile ticketing is beginning to move extremely quickly, driven by the direct convergence of ticketing and payment applications. With multiple technologies like NFC, QR codes, SMS, and Bluetooth for Public Transportation Authorities (PTAs) to consider, it becomes a question of which technology will win out.

Answering this question is not clear cut, as there remains multiple considerations beyond technology type that need careful consideration before a PTA can decide to adopt one or a combination of mobile ticketing technologies.

Transit authority networks are extremely wide-ranging but can be broken down into six primary categories that cover a multitude of transportation modes, traveler types, technologies, protocols, payment media, and fare tariffs. The complex nature of a transit network ultimately means that there is no technological “silver bullet” to address all areas.

• Traveler Type: PTAs need to be flexible in their approach to ticketing to ensure they are catering to all commuter types, not only in terms of traveling frequency, but also in terms of generations to ensure a transit authority is catering to all.
• Technology Choice: Technology choice is increasing but not all technologies are suitable for all transit types. Mass transit requires quick and secure authentication, whereas others, including taxis and long-distance rail travel, do not require the same levels in terms of authentication speed.
• Protocol Fragmentation: This can ultimately lead to two cities in the same country operating different protocols. A number of countries have or are in the process of adopting/specifying national standards to bring new levels of unity on a national level, even if different regional networks are operated by different PTAs. However, this fragmentation ultimately means that priorities differ: where one authority might be looking toward open-loop acceptance, another may be fully focused on migrating from memory-based credentials to a more secure microcontroller variant.
• Transit Modes:Transit modesunder a single transportation network could comprise different transportation types, including taxis, underground/subway, etc. Moving forward, the number of transit modes under a single network’s purview and responsibility will likely increase with the rise of scooter hire and later with autonomous driving/ride sharing schemes. Each transit mode will require a different approach, driven by differing requirements including security levels, authentication speed, and payment types/choice.
• Ticketing Payment Types: The ability to address all commuter types requires a very broad approach in terms of payment acceptance. Accessibility is driving transportation networks to expand payment choice and the technologies adopted to ensure that they cater to traveler types.
• Ticketing Types: PTAs are well known for their extremely complex fare systems and different fare models. A combination of off-peak, on-peak, daily, monthly, annual, concession, one-way, returns, and limited-use ticketing types drive out multiple pricing options, which require multiple payment methods/options.

In conclusion, there is no technological “silver bullet” to address all eventualities. PTA networks encompass myriad transit types/modes and fares. The network must be publicly accessible to a wide range of commuter types in terms of usage, generations, payment, and media access, and include access to travelers who do not have access to the necessary technology (such as a supported NFC-enabled device for mobile ticketing) and the unbanked in order to ensure that a public transportation system remains truly open and accessible for all.

As such, PTAs need to continue to support a diverse range of ticket types and provide travelers with a choice in terms of ticketing consumption in order to comply with their mandate of universal service access, often referred to as the digital inclusion imperative.

Public transportation needs to be accessible for all, and for that reason alone one technology or payment type cannot win out over another and technology coexistence is a key requirement to ensure continued ease of access for all. The overriding agnostic approach signals ticketing media/technology coexistence, at least for the foreseeable future.