MIFARE™ is the industry´s technology platform of choice for contactless ticketing applications
May 29, 2012 at 1:18 PM
ABI Research study about drivers and trends in the contactless ticketing market confirms MIFARE´s leading position
The ABI Research study about contactless ticketing in public transportation primarily focuses on providing an overview on standalone RFID, smart cards and ticketing shipments. In this study, NXP´s MIFARE technology was mentioned as the most frequently used and preferred platform of contactless ticketing within the transit industry.
The MIFARE product range is widely used and deployed all over the world in buses, taxis, metro, trains and other transportation modes. More than 5 billion MIFARE credentials have been issued since its invention. This means that approximately 74 % of all contactless cards and tickets worldwide are based on NXP´s MIFARE technology which is actually implying a further increase in market share within the last 5 years.
Recent market developments have led to more attention on the potential use of international standards such as EMV or Near-Field-Communications (NFC). MIFARE is offered via the industry´s broadest licensing programme and therefore, available on SWP-SIM solutions for mobile devices as well as on banking cards.
Drivers of Contactless Ticketing
- Creation or migration to smarter cities
- Faster transaction speeds than those of manual checking
- Digital systems reduce costs in manual processing
- Contactless technology offers a higher level of security than printed legacy tickets
- Contactless tickets can be used across multiple transport types within one and the same transport network
- More convenient and less time consuming for the user
- Life cycle of tickets can be up to ten years dependent on type of deployment
- Contactless ticketing can calculate the best or most economic fare for users without having to spend time looking for the best deals
- Top-up cards eliminate the need for cash and reduces queues at TVMs
- Integration and compatibility with ISO 14443, banking and NFC
Key Takeaways from Trend Analysis
- Convergence with payment cards is still a few years away on a mass global scale
- The adoption of high-end solutions is not primarily driven by security but by multi-application capabilities
- Hybrid payment cards represent a suitable bridge technology
- Transport authorities will have to continue deploying standalone ticketing solutions for at least the next five years. Contactless payment cards will not be anywhere near to a level where standalone cards can be phased out
The use of NFC and the adoption of open loop payment systems will be the core of many discussions in the transport industry. ABI Research believes that some of the fundamental issues within the transportation ticketing market will be addressed over the next five years. Worldwide, the contactless ticketing market will achieve steady growth over the forecast period. In terms of product shipments, ABI Research expects that the MIFARE range will continue to be the most successful product platform. MIFARE has the best costumer base to continue deploying both new and replacement credentials.
In general shipments of both smart and disposable tickets are set to increase from 913 million units in 2011 to 1.8 billion units in 2017. ABI Research forecasts that 163 million contactless payment cards and 122 million NFC handsets will be used to act as transport tickets by 2016.
About ABI Research
ABI Research is a market intelligence company specializing in global connectivity and emerging technology. Their unique blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers in the technology industry every year. Their research has evolved over 22 years and continues to adapt to the rapidly-changing technology industry's needs.
Source: Contactless Ticketing for Transportation 2012, ABI Research