With the expanding integration of near field communication (NFC) technology into mobile devices, it shouldn’t come as a surprise that recent research estimates half a billion people will be using mobile devices as travel tickets by 2015. It is only recently that banks and cell phone providers have begun to open up to NFC for making mobile payments and other uses.

Mobile phones that are NFC-enabled contain a chip that securely holds a payment application as well as the owner’s bank account information.  Then, when the consumer goes to pay, the phone communicates the payment account information to the point-of-sale terminal using the same radio frequency that contactless debit and credit cards use.  Of course, these types of payment can only be made where contactless debit and credit cards are accepted.

For suppliers like transit operating companies, mobile ticketing reduces the production and distribution costs that are associated with using traditional paper tickets.  Another potential benefit for transit operators is that mobile ticketing can potentially increase revenue due to increased ticket availability as well as reduced infrastructure costs that are associated with paper tickets.

Mobile ticketing also makes it possible for transit operators to offer on-demand information to inform passengers of real-time delays as a part of the mobile ticket purchasing application.  The mobile ticketing application can also deliver targeted advertisements based upon the user’s location, giving transit operators another way to generate revenue. 

There are also many benefits of mobile ticketing for passengers as well.  The system is extremely simple for passengers to use, making it possible for them to just tap their phone at the payment reader, deducting the appropriate fare payment securely and quickly from their account; saving them time they would normally spend waiting in line to get a ticket, especially during peak travel times.  As well as saving the passengers time, the back office technology for new mobile payment systems will automatically calculate the lowest and best fare for the trips they are taking.

As more and more transit operators adopt these ticketing systems, the easier it will be to ride on public transit while traveling in other cities, easing the difficulty many people have figuring out how to purchase  tickets on unfamiliar transit systems.  Instead, their mobile phone will become their fare card for the world.