The value of mobile ticketing from a public transport perspective

Abstract

Within the field of mobile payments, the market segment for mobile ticketing services is expected to grow, driven by the public transport sector. Although a large number of studies have explored the value of mobile payments to customers (ie service end users), there is a lack of research exploring the value of mobile payment and mobile ticketing for business customers (ie transport companies and retailers). This paper aims to address this gap and to explore the kinds of value that mobile ticketing services create for public transport companies. The research considers mobile ticketing services in six Northern European countries. The research findings suggest that within the business-to-business context, mobile ticketing services create multiple dimensions of value, namely enhanced technical functionality; financial value; better working environment; operational value; and reputational and customer relationship value. For passengers, meanwhile, value takes the form of convenience and service enhancement. These benefits are factors driving adoption of mobile ticketing and mobile payment services by public transport companies.