#Carrier Billing

SMS parking payment arrives in France

3 min

Since Thursday, March 15, 2012, Bouygues Telecom, Orange, and SFR have been experimenting in Mulhouse with a new solution: outdoor parking payment by SMS. This pilot project, accessible to customers of the three operators, will be progressively deployed in other French cities by the end of 2012, including two located in Île-de-France, before a commercial launch planned for early 2013.

How does this service work?

To pay for a parking space, the motorist simply sends their license plate number by SMS. In return, they receive a payment confirmation and a reminder, also by SMS, 10 minutes before the end of the parking period. It is then possible to extend the duration directly from their phone.

Control agents, equipped with smartphones or PDAs, verify payment by entering the license plate number into a dedicated application.

The amount is debited via the mobile bill or phone credit if the motorist is a Prepaid or blocked plan customer. This service is available for all consumer mobile lines.

A new revenue lever for operators

Without additional fees for the motorist, this SMS payment system represents an economic opportunity for telecom operators. Municipalities remit a portion of the revenue generated by parking to them.

For cities, the interest is twofold: offering a practical service to their residents while reducing the rate of unpaid parking. Currently, only 30% of French people pay for their parking, but 76% say they are interested in this SMS solution*, according to a 2011 Médiamétrie-AFMM study.

This system, particularly simple to use, eliminates the constraints associated with searching for change or purchasing prepaid cards. Moreover, it does not require sharing bank or personal data, unlike other mobile payment solutions.

A promising market

With approximately 500,000 parking spaces spread across 700 municipalities in France, this market offers considerable potential. Managed by Bouygues Telecom’s Kiosques service, this project could eventually generate several million euros in annual revenue for the company.

It will be added to other existing Kiosques services, content, and micro-payments, which currently generate 50 million euros per year. These services cover various areas, ranging from mobile and PC content to practical daily solutions.

Source: Médiamétrie-AFMM 2011 study