Machine-readable applet

An applet is a small program (application), which performs a small number of specific tasks. Applets are often designed to work in conjunction with, or as an extension (plug-in) for a more extensive program. The applet may sit on a host operating system, using the features and utilities of the host. Applets are usually written in Java.

Applets are of particular interest for mobile phones and other personal portable devices (e.g. PDAs), where memory and processing power must be optimized. Among the vast array of applets for mobile devices, some applets are designed to allow devices to interact with each other.

A rapidly emerging area of very high interest is the use of mobile phones and PDAs for micropayments and other authorizations. This is due to a combination of the very high penetration of mobile phones among the population, the rapid advance in capabilities of smart phones, a culture of downloading applications, and the fact that mobile phone customers already have some means of paying for the mobile services.

“Near-Field Communication” (NFC) allows the user device and the transit reader to identify each other and hold two-way communication. As the name suggests, this type of communication requires the devices to be close to each other (within a few centimeters). This is direct device-to-device communication. It does not use the GSM / GPRS facility of the user’s mobile device, and hence is secure, immediate, free, and is not vulnerable to coverage quality.

This is a highly innovative domain, whose potential is still being explored. Many applet developers are testing what might interest customers and transit agencies, and where the expectations and constraints might be. To date, applets are observed in three main types:

General payment applications, which are developed and supported by non-transit entities. Transit accepts this form of payment in lieu of cash or card-based stored value.
Journey tickets, where the applet facilitates the purchase of an electronic ticket, which is downloaded to the applet on the mobile device, and then presented to the transit reader or ticket inspector.
Travel-pass style applications, where a more general permission to travel is enabled by the applet, which presents the authorization to the transit reader.
Post-payment, where the fare is charged to the user’s account. This may be used in conjunction with daily or monthly fare-capping.

Benefits of machine readable applets on mobile phones and PDAs are:

Customers can acquire their tickets online, without having to visit booking offices or vendor/agent points.
For the transit agency, it exploits the users’ technology platform (internet, mobile phones, PDAs) at very low cost.
Savings in distribution costs and vendor / agent commission.
The applets are mostly developed by third parties, which relieves transit agencies of the cost and management burden of developing them.
There is full transaction data and audit record.
Many smartphones already contain an embedded NFC chip, which supports communication of encrypted data.
Can present a modern, innovative image of the public transport, especially to younger and tech-savvy people who might not usually consider using the bus.
With increasing penetration of smart phones, many users are familiar with applets and willing to try new things, and not afraid of a certain degree of complexity and having to learn commands or short cuts.
Can form part of a broader Customer Relationship Management program.
Reduces the amount of cash transactions on-board, and can offer a viable alternative for infrequent travelers if wishing to eliminate on-board cash.
Can link the ticket purchase with other purchases associated with the travel (e.g. concerts, cinema).

Cautions with regard to machine readable applets on mobile phones and PDAs are:

This remains an innovative and developmental area.
System cannot provide revenue integrity for on-board validation of pre-purchased tickets if the ticket can be purchased and shown during a ticket inspection action.
Accidental deletion of the applet by the customer.
Applets might not be accessible if the battery runs out on the customer’s mobile phone or PDA, although some models can support card emulation mode from the residual charge in the battery.