Deploying NFC Technology for Mobile Ticketing Services – Identification of Critical Business Model Issues

Abstract

Near Field Communication (NFC) is a promising new communication technology that, among other things, allows mobile phones to emulate smart cards such as the travel cards used in public transportation. Bringing the travel card into mobile phone creates numerous benefits for both end users and service providers, which is why mobile ticketing with NFC technology has been considered a promising service. However, despite optimistic predictions, NFC technology and mobile ticketing services based on it, has yet to take off. While technical problems have played a part in this delay early on, the most significant reasons can be found in the challenging business models needed to realize NFC services. In this study, we aim to analyze the NFC mobile ticketing business model holistically and to identify critical issues that affect the commercial success of such a service. To do so, the NFC mobile ticketing business model is evaluated using a theoretical framework called the STOF model. The research material is comprised of a literature review of both academic and nonacademic literature as well as several expert interviews.