NEC develop a new digital ticketing system

Hiroshima, Tokyo & Gifu, March 4, 2022 – Three companies, Hiroshima Electric Railway Co., Ltd. (Hiroshima Electric Railway; TSE: 9033), NEC Corporation (NEC; TSE: 6701) and LECIP CORPORATION (LECIP; TSE: 7213) will begin to develop a new Account Based Ticketing (ABT) system for commuters in the Hiroshima region. This is the first announcement in Japan of the commercialization of an ABT-based ticketing system that is compatible with commuter passes and provides support for a complex fare policy for commuters. The new ticketing system will be developed with the aim of starting service in October 2024.

The ABT system will be a cloud hosted service and user accounts will be linked to QR codes or Smart cards. Information such as balances, commuter pass detail, travel history and concessions/discounts can be kept, referenced and updated on the cloud server, which frees the device side from performing high-speed calculation processing, making it possible to reduce the overall system cost. In addition to QR codes and Smart cards, the new ticketing system is slated to support a variety of authentication media in the future. As a result, collaboration can be expected with other means of transportation and a wide range of services among city and travel destinations.

1. Overview of the New Passenger Ticketing System

• Users register for the service from their own smartphone or PC. Credit card or bank account registration is required when registering as a member.
• Users can top up or purchase commuter passes from their own smartphone or PC without visiting a service counter. Users may also view their usage history.
• When riding a street train or bus, users hold the QR code displayed on their smartphones over an on-board device when getting on and off. Rather than a smartphone, users may also touch an in-vehicle device with a new dedicated transportation Smart card when getting on and off.
• Various discount services (fixed-rate discounts, transfer discounts, common commuter pass systems, etc.) that are currently available with the transportation Smart card PASPY are also planned to be implemented in the new ticketing system.

2. System development and the roles of each company

• Hiroshima Electric Railway: Provision of know-how on fare collection and system management
• NEC: Development of a new account based ticketing system
• LECIP: Development of in-vehicle equipment

3. Service launch

Scheduled for October 2024

• Details of the service content and launch will be announced at a later date.
• QR code is a registered trademark of Denso Wave Inc.

Paid promotion supported by NEC.