Will the bank card replace the ov-chipcard?

After the disappearance of the paper train ticket the OV chip card may be next. Customers of the ABN AMRO bank will be the first people in the near future to check in at the public transport with their bank card. The bank plans to equip three million cards with the new technology. The NS is currently performing the first test with this new system. If the current tests run without problems a test group will be selected and further plans will be made.

To check in people will need to have a NFC chip and a minimum balance of 10 euro’s. The NFC (near field communication) chip is already implemented by ING and ABN AMRO cards and allows people to conduct transactions wireless (the system can be used at the Spar on the campus for example). It enables a two way communication between a bank card and another payment system. The current maximum transaction is 25 euro’s.

The new form of payment may become a financial hit for the NS. The current transactions are performed by Trans Link Systems, in which they are currently the largest shareholder (68 percent). The entire system and firm may become redundant this way.

This new system may come in handy for tourists who don’t own a OV chip card. They won’t have to buy a card anymore which will lower the huge amount of complaints the NS receives per day. The way our wallets look like today will change completely within the next years.

The big question is how long this new payment system will exist. They currently also equip smart phones with this NFC chips. Rabobank doesn’t participate in this new IT project and expects payment through telephones will be the next big thing.

Do you think the OV chipcard will disappear within the next three years?







3 responses to “Will the bank card replace the ov-chipcard?”

  1. 349212jp says :

    I think the OV chipcard will disappear in a few years. But I think there will not be one method of paying left. Maybe in the future both technologies will be possible, paying with your mobile phone and your bank card. To be honest I don’t understand why Rabobank is not implementing the technology with their bank card, since this might be negative for themselves in the future.

  2. 349615sg says :

    No, I do not think the OV chipcard will disappear in the next three years. Of course, it shall disappear in the future, but this needs more time. Currently, the OV chipcard receives a lot of criticism. For example, it is customer-unfriendly, there are too many failures, tourist do not own a chipcard, people forget to checkout, etc. Also, people still have to put money on their card so they still make the same operation as with buying a paper ticket. This operation should disappear.

    The solution is mobile (NFC) payment. But, at the moment there are too many risks for NS to implement this method. Most important risk is the consumer acceptance. Are people ready to make payments with their mobile phone? Before implementing mobile payment NS should convince its customers that it is a safe method and that the customers privacy is protected. That is why NS needs a transition period to implement this payment method. I think this period has to be longer than three years.

  3. 331597eb says :

    Since the introduction of the OV-Chipkaart the representer of traveller’s interests has been complaining about this new platform. They stated it was too complex for most people to understand. Although the only action a traveller has to undertake is put the OV-chipkaart on the reader when entering public transport and put it on the reader when they exit public transport. I guess that most complaints are from people who do not embrace new technologies and that is not something you can fix with another new technology.

    I agree it is much more easy to use your debit card to check in and check out, but the biggest complaints of the travellers is not fixed by that. The most complaints that the NS gets are from elderly people and they are not the one who will accept another new method to pay with a debit card or a telephone.

    You state that the new system will also come in handy for tourists but I doubt that. What is the solution for tourists who do not have a NFC chip in their debit/credit card or in their mobile telephone? You will still need a second backup system then. And what about multiple-days discount cards you can buy in most cities for public transport. Are these options possible on a NFC chip?

    I do believe that the OV-chipkaart will disappear in the future but I believe that the technology is not yet ready for the mass-use of NFC.

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