OTI’s EasyPark parking payment system, deployed in cities across Israel, enables prepaid auto parking on city streets. OTI sells the contactless parking tokens and shares in collected revenues via transaction fees. In 2004, these transaction fees generated $325,000 for the company.
OTI’S EasyPark System Shows 78% Increase In Transaction Fees System Grows to 166,000 Subscribers
FORT LEE, N.J., Feb. 22 /PRNewswire-FirstCall/ – On Track Innovations Ltd, (OTI) (Nasdaq: OTIV; Prime Standard [Frankfurt]: OT5), a global leader in contactless microprocessor-based smartcard solutions for homeland security, micropayments, petroleum payments, and other applications reported today that its EasyPark parking payment system has reached more than 166,000 subscribers in 25 cities in Israel with transaction fees of $325,000 (out of 22 million New Israeli Shekels in revenues).
With more than 2 million vehicles in Israel, EasyPark has just begun to realize its potential:
– About 5,000 new EasyPark devices are being sold monthly, with 60,000 new EasyPark devices sold in 2004, an increase of 82% over the 33,000 devices sold in 2003 – Transaction fees from EasyPark in 2004 were $325,000, up 78% from $183,000 collected in 2003. – The EasyPark program offers a constant stream of revenues from additional product sales as well as licensing and transaction fees. – OTI has begun marketing this system internationally.
With EasyPark OTI implements its business model of generating revenues from product sales as well as transaction fees and customer support. In the first stage of deployment, most revenues are generated from setting up the infrastructure. Once a critical mass of infrastructure is in place, early adopters begin using the product routinely. Currently, EasyPark has reached a level where there is a sufficient user base to provide a constant stream of revenues. This business model of generating on- going licensing and transaction fees also has been successfully implemented by OTI in its petroleum payment product and some SmartID programs.
With EasyPark, when drivers park their car, they turn on the contactless in-vehicle parking device and display it in their window; when they return to the car, they simply turn off the device. This eliminates the need for parking meters in the street, and creates a uniquely convenient user experience. The EasyPark system currently is used for on-street parking payments and for parking lots, where the device is simply presented at the gate when entering or exiting the lot.
Oded Bashan, Chairman, President and CEO of OTI said, “The increase in revenues from the EasyPark program is a good example of the growing impact of OTI’s strategic shift to higher margin recurring revenue-based programs. More than just selling products, OTI ensures the continuous development of the project by also receiving transaction fees.”
Established in 1990, OTI designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for petroleum payment systems, homeland security solutions, electronic passports and IDs, micropayments, mass transit ticketing, parking, loyalty programs and secure campuses. OTI has a global network of regional offices to market and support its products. The company was awarded the prestigious ESCAT Award for smart card innovation in both 1998 and 2000. For more information on OTI, visit http://www.otiglobal.com/ .