This page contains a Flash digital edition of a book.
NFC in the Parking Industry BY LARRY BERMAN W

HENSHOWNANOKIA6212 near field communication (NFC) phone and some MiFare tags, which performed simple tasks such as playing a song on

my phone or takingme to awebsite, I got interested in creating an application that would reduce the com- plexities of parking at a meter with coins, credit cards and cell phones.

The problem with coins is having as many as you need to

park in the ever-demanding rate increases in parking costs. Cred- it cards are not taken at allmeters, and in a lot of cases, themeter does not read the card due tomalfunctioning equipment. The need for this new technology in using a cell phone to

pay for parking will create unique and sim- plified parking applications. A short-range, high-frequency, wireless

communication technology, NFC is similar to Bluetooth and has a range of about 10 cen- timeters (about 4 inches). It can be used pri- marily in three instances: • Card emulation: The NFC device acts

like an existing contact-less card. • Reader mode: The NFC device is

active and reads a passive RFID tag, for example, for interactive advertising. • P2Pmode:TwoNFCdevices can com-

municate and hence exchange information. Letme give you an example of howthis

technologyworks. On a typical day, you race out of the house and head to your transit sta- tion, wave your phone at the turnstile’s elec- tronic reader, dash down to the platformand just make your train. The train pulls into your stop, and as you step off, you notice a sign for a fast-food restaurant advertising great coffee. The sign has a logo signifying it’s a smart ad – an advertise-

ment that transfers information to your phone when you tap it on the logo.You tap the smart ad and your phone displays the loca- tion:There’s one on 6thAvenue, right by your station. You step around the corner and order that coffee.You pay for

it by tapping your phone at the checkout stand.You remember that, because of your enrollment in a loyalty program, you also downloaded a 10% discount coupon when you tapped the smart ad. That amount was automatically deducted from the price of the coffee. Thanks to NFC technology, the parking industry is undergo-

ing amajor shift in the way it will be doing business. Smart cards were introduced in the 1990s. The public was

slow to accept this payment method. Today, NYC sells about 14 million cards a year. In 2000, the credit card began to show up at multi-space meters; today, 20% to 40% of the transactions are credit cards. In the past five years, a new technology has been introduced that enables a person to pay with a cell phone at a parking space


by dialing a number, and entering a space IDand a length of time the person wishes to park. This technology has opened up very powerful resolutions to parking applications and permitting in authorized parking areas. Of all payment methods, this is the most innovative and flexible. It offers a convenient alternative paymentmethod. All that is

needed for implementation are instructional stickers prominently placed on single-spacemeters or posts. It also can be used to han- dle payments in a pay-and-display environment when needed. The versatile and robust technology allows the flexibility to

accommodate an unlimited number of parking zones, durations, rate policies and permits, and can be tailored to accommodate the needs of any city. Radio frequency (RF) tags, or transponders, when placed on

parking meters or signage, can be programmed and when touched, will produce a parking transaction or take you to a web- site to register for any kind of parking pro- gramthat requires it. Using this technology, my new parking

application will be called Touch ‘N Park. Just touch an NFC-enabled cell phone to the target area and an SMSmessage will be gen- erated and sent to its central servers. When the parker returns, he can touch the RFID tag again to stop the parking transaction, if the city permits that. At the present time, the only NFC-

enabled phones are from Nokia. The next version of the iPhone is expected to have this technology built in. Other companies will release either mini-SD cards or attachments for smart phones to enable them to read the new NFC chips. NFCmobile payments, for low transac-

tions anyway, were expected to exceed $75 billion globally from 2009 to 2013 accord- ing to a 2008 study from UK-based Juniper Research. In the second report in its Mobile Payment Markets series, the firm found

there was a “significant opportunity” for NFC mobile payment services, chips, phones and supporting services, especially as the market reaches its tipping point over the 2011 to 2013 period. But, as the report’s author cautioned, “The Industry still

needs to convince both consumers andmerchants of themedia of yet another payment mechanism on top of cash, checks, credit and debit cards, and to allay understandable (even if unfounded) fears and skepticism about the security of themobile wallet.” The report’s author, Howard Wilcox, said; “NFC will

achieve traction initially in developed countries and regions, with Japan already leading the way with FeliCa-enabled phones. North America,Western Europe and countries such as Korea, Singapore and Australia are likely to see service take-up.” With NFC technology, a new horizon for the parking indus-

try is just ahead.

Larry Berman, President of Metered Concepts, can be reached at


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52