Germany's huge mass transit system is getting an RFID-enabled ticketing system, according to a report in Wireless IT World:

"T-Systems International GmbH, the IT services and infrastructure arm of German telco Deutsche Telekom AG, has developed an e-ticketing system in collaboration with the German Mass Transit Authority (VDV), which represents hundreds of regional bus and train companies in the country, said Frankfurt-based T-Systems in a statement on Thursday.

The system consists of several components: the so-called "VDV core application," a semiconductor-based smart card equipped with a miniature antenna, RFID technology for retrieving data from the cards over the airwaves and sensor-based card readers.

The technology allows passengers to pass by a card reader without having to swipe or insert their cards into the device.

Customer data, such as identification number and pricing, are contained on a Chip embedded in the smart card. "This is not an RFID chip, which essentially is dumb, but a chip that contains an operating and software application," said T-Systems spokesman Albert Hold. "All data is encrypted for secure transmission."

RFID is used in the process because the radio technology doesn't require the embedded chips to be powered in order to retrieve information, according to Hold. Also, the cards can be read remotely."