The appeal of NFC

NFC enables two compatible devices to communicate wirelessly if they are brought within four centimeters of each other, but, unlike FeliCa, it is based on international standards. The technology is also appealing to transportation and cellphone companies because its more advanced functionality gives it the potential to support a broader range of revenue-generating value-added services such as loyalty schemes, mobile coupons and personalised discounting based on travel times (which helps to manage congestion).

Another attraction for transportation operators is the system’s ability to cut costs. Sarah Clark, editor of online publication Near Field Communications World, explains: “On average, the cost of issuing traditional tickets accounts for about 25% of the ticket price, and you need a huge infrastructure in place to manage it.”

Many major cities already have a contactless smart card based infrastructure in place that can support NFC-based cellphone use without any modification and, in any case, the two technologies are considered to be complementary. Both are useful in reducing congestion in stations and cutting the number of expensive ticket machines required, which take up valuable floor space.

NFC mobile ticketing has also proved popular with customers. According to a survey undertaken by Gemalto, which has been involved in about 25 pilot projects worldwide, 90% of users love its ease of use and convenience.
 

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Gemalto introduces NFC solutions

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