Zbornik radova Koridor 10 - Kirilo Savić

3rd International Scientific and Professional Conference
CORRIDOR 10 - a sustainable way of integrations
Figure 1: Public transport ticketing with NFC phones [8]
There are three options for storing the ticket securely on the phone, each of which may have a
different provider:
A handset manufacturer can provide NFC-enabled phones with embedded secure elements
SIM manufacturers can provide the SIM cards, via the mobile network operators, needed to store
ticket applications
Secure Digital card manufacturers can offer SD cards, when the ticket is stored in a pop-out card
There are many players who need to be involved in developing an NFC transport system. In most
cases, the requirements will be driven by the transport operator, who will be looking to integrate NFC
applications into an existing structure for travel and customer service, ticketing, access control, and
payment. This may or may not already include contactless acceptance capability.
Contactless payment cards are very suitable to be used in public transport, too. The transit and bank
card payment industries have historically taken different approaches to processing payments and
managing risk. However, as bank card issuers offer contactless credit, debit and prepaid cards and
institute new programs for low-value transactions, transit agencies can take advantage of these
programs to directly accept contactless bank cards for fare payment at the point of entry where the
fare media is ordinarily presented. This can yield significant benefits for transit fare collection vs. other
non-cash approaches.
MasterCard PayPass [9] and Visa PayWave [10] use contactless technology based on ISO 14443 and
are designed for low-value payments well suited for use in trafficked areas (café, kiosks, vending
machines and transport). There are many pilot projects where payment card is used as fare media
(ticketing application added on payment card) or as payment method (single journey payment) for
public transport. There are also live mass roll out project (Slovakia, Turkey, London…) where public
transport operators and financial institutions find the suitable business model for all parties involved.
The new technology are developing very quickly and in the near future the NFC technology will be
integrated in almost all mobile phones and we will have contactless payments cards in the pocket (or
even on mobile phones), so the technology will not be a problem. The challenge is to develop right
business model and agreements between public transport operators, public transport authorities,
financial institutions, telecommunication operators, etc. They all need to work together to ensure that
any ticket can be bought with payment card or NFC mobile phone and also stored within this media
and used in every public transport anywhere.
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