Why native mobile ticket integrations could be transformational

Digitalization has made mobile phones an increasingly popular option for transport ticketing. In simple terms, it comes in two forms: stored value cards or native integration.

A stored value card is exactly that: a user stores a certain value onto the card, which is debited for subsequent journeys. When the ticket is used, the ‘counter value’ is decremented and the journey is paid for by tapping the device to an NFC reader. The open Calypso Standard enables users to top-up such cards via their mobile phone, but it’s not the only way to pay with your mobile. 

Earlier this year it was announced that travellers in the Paris Île-de-France region would be able to purchase and validate tickets with their Navigo pass natively within their digital wallets. Announced both for Samsung Wallet and as both a world and European first within the Apple Wallet, this marked a landmark breakthrough for transit ticketing. But what is so significant about native integration compared to stored value cards? And how will users and operators benefit? 

Intuitive and inclusive integration 

Native integration builds on the foundations laid by current mobile ticketing offers. In addition to the dedicated travel app that many local users will already be familiar with, native integration adds the option to purchase tickets within a mobile wallet and use them instantly. There is no need to repeatedly repurchase and reauthenticate yourself in an online portal each time you wish to travel.  

The seamless user experience this provides rivals that of tap and go open loop offers. It can provide an intuitive journey that allows for better throughputs at ticketing gates and higher customer satisfaction. It also means that tourists or less frequent users do not need to be familiar with the dedicated apps of local operators; thanks to the digital wallet offer, the search for the right ticket is simplified, and can even be displayed in the user’s chosen language. 

Additionally, unlike with stored value cards, these native travel cards are able to harness the underlying Near Field Communication (NFC) capabilities of the smartphone, meaning that the ticket can still work even when the device is in power reserve mode. No more worrying about battery life on the long trip home! 

Buying tickets via a digital wallet can avoid the need to visit a ticketing kiosk or machine. But kiosks do not become redundant! They serve two key functions that enable inclusion: first, they can be used by those unwilling or unable to use a digital wallet; and second, they can serve as gateway to digital inclusivity. In other words, people with disabilities, or tourists, or the ‘unbanked’ can use kiosks to recharge their digital wallet by paying with cash. This can unlock the entire digital economy like never before and could lay the groundwork for economic growth in emerging nations without the restrictions and costs associated with fixed line infrastructure. 

Take back the power 

EMV®-based open loop ticketing claims to be a more convenient option for users, but this convenience comes at a cost. Both the user and the transport provider sacrifice control. The user has no option to choose what type of ticket they want, nor can they typically select any discounts and concessions for which they are eligible. Meanwhile, transport providers lose their jurisdiction over payment infrastructures and operational data. They also need to share revenue with external payment networks by way of processing or interchange fees.  

That’s why natively integrated mobile tickets based on open standards could be transformational. They can allow both user and operator to retake ownership over their ticketing. The user has access to the full suite of ticketing products and concessions, with their smartphone effectively providing their own pocket-sized ticket kiosk. This allows them to plan their route, paying for and accessing tickets for their entire journey, on their own device, in their chosen language, wherever they are. Unit-value fares such as zonal rates, fixed-date subscriptions, variable-date subscriptions, Pay-as-you-Go fares, and more are all available quite literally in the palm of their hand. 

Networks also benefit as they retain dominion over their ticketing. They gain full fare customization, can access demographic and travel pattern behaviour, manage infrastructure and control security standards all while avoiding the high interchange fees associated with using the card schemes. 

Why mobiles are shaping the future of mobility 

Digital wallets are expected to dominate the future. Not just in payments and transport, but across almost every facet of our lives. EU member states are already piloting EU Digital Identity (EUDI) Wallet apps, offering a faster, more secure way to verify identity in the digital world. Combining this with sustainability efforts promoting dematerialization – and emerging use cases in fields including access control, healthcare and automotive – mean that digital-first initiatives that utilize the user’s own smartphone are becoming more prevalent. 

Solutions that can interoperate seamlessly within this digital infrastructure will prove vital, especially those that allow users to consolidate their needs into one familiar, intuitive platform. Natively embedding a travel card within the digital wallet delivers this in a way that provides convenience, speed, and trusted security. The success of the recent Apple and Samsung deployment in Paris is testament to the power of collaboration and open standards, with all stakeholders sharing an unwavering commitment to putting the user experience first.