Market traction for mobile ticketing will be determined by the availability of NFC phones

Mobile ticketing still facing barriers

Near Field Communications vital to driving adoption, claims Juniper Research

vnunet.com, 21 Oct 2008

Over 400 million subscribers will use mobile ticketing systems by 2013, contributing to gross transactions of $92bn (£53.8bn), according to recent research by mobile analyst firm Juniper Research.

While the report recognises this as significant growth in the market, Juniper believes that the lack of trial and pilot programmes being rolled out to the mass market is making uptake slower than it could be.

The report highlights bar code reading issues, lack of reader infrastructure and a paucity of Near Field Communications (NFC) handsets as three of the biggest barriers to the adoption of mobile ticketing on a broader scale.

"Mobile ticketing offers exciting new opportunities for ticket issuers to achieve increased sales, including targeted last-minute sales campaigns," said Howard Wilcox, author of the report.

"For example, tickets for the sporting event or movie happening 'tomorrow' or 'tonight' could be marketed directly to known fans."

However, Wilcox warned that, while NFC mobile user trials at The O2 in London and BART in San Francisco have been encouraging, market traction will be determined by the availability of NFC phones and the installation of NFC readers.

NFC is a crucial development because one of the most attractive draws for mobile ticketing is convenience, according to the report, which predicts that NFC will reach its tipping point between 2011 and 2013.

Transport, entertainment and sporting events are expected to be the leading sectors in mobile ticketing.

Geographically, the Far East and China region is leading the market, driven by adoption in Japan particularly among rail travellers. The Far East and China, together with Western Europe and North America, is expected to account for more than 80 per cent of the global gross transaction value by 2013.

Furthermore, some airlines, cinema chains and football and baseball teams are beginning to offer mobile options for ticket purchase and delivery, the report explained.