Cognizant and the North Carolina Turnpike Authority Collaborate to Modernize Toll Operations

Rhea-AI Summary

Cognizant (Nasdaq: CTSH) has announced a strategic partnership with the North Carolina Turnpike Authority (NCTA) to develop a next-generation tolling back-office system. The collaboration aims to revolutionize toll operations by implementing an infrastructure-less tolling system that enables direct toll payments through Volvo's infotainment system, eliminating the need for traditional transponders.

The multi-stage project leverages Cognizant's IoT and API development capabilities to create a scalable, API-driven architecture integrating with partners like Mastercard and Volvo Car USA. The initiative targets a $1.6 billion total addressable market in the U.S. and focuses on immediate revenue recognition for NCTA while modernizing traditional tolling operations.

Positive

• Partnership targets a significant $1.6 billion total addressable market in the U.S.
• Innovation eliminates need for traditional toll transponders, reducing infrastructure costs
• Integration with major partners like Mastercard and Volvo enhances market reach
• System enables immediate revenue recognition for NCTA

Negative

• None.

Insights

Technology & Infrastructure Analyst

Cognizant's NCTA partnership targets $1.6B market opportunity with infrastructure-less tolling tech, positioning them in transportation's digital transformation.

Cognizant's strategic partnership with the North Carolina Turnpike Authority (NCTA) represents a significant innovation play in the transportation infrastructure space. The collaboration aims to develop a next-generation tolling back-office system that will revolutionize how tolls are collected and processed.

The most compelling aspect of this initiative is its focus on infrastructure-less tolling - effectively eliminating the need for traditional toll transponders by enabling direct payment through vehicle infotainment systems. This approach dramatically reduces capital expenditure requirements for tolling authorities while increasing revenue recognition speed.

The partnership leverages Cognizant's technical expertise in IoT integration and API development to create a scalable, API-driven architecture that connects seamlessly with partners like Mastercard and Volvo Car USA. This represents a significant shift from labor-intensive, capital-heavy systems toward agile, digital-first models.

From a market perspective, Cognizant is strategically positioning itself within a $1.6 billion total addressable market in the U.S. alone. This first-stage engagement could potentially lead to multiple implementation opportunities across other states if successful, creating a substantial growth vector for Cognizant's transportation and logistics business segment.

The multi-stage nature of this engagement suggests a long-term revenue stream rather than a one-time project. By orchestrating technology across all systems in this proof of concept, Cognizant is establishing itself as a leader in transportation infrastructure modernization - an area experiencing increasing investment as legacy systems reach end-of-life and agencies seek more efficient, customer-friendly solutions.

Strategic collaboration aims to revolutionize infrastructure-less tolling and enhance operational efficiency across North Carolina

TEANECK, N.J and RALEIGH, N.C., Sept. 15, 2025 /PRNewswire/ -- Cognizant (Nasdaq: CTSH) today announced a strategic partnership with the North Carolina Turnpike Authority (NCTA) to develop and implement a next-generation tolling back-office system. With the first stage under way, this multi-stage engagement aims to deliver a scalable, API-driven architecture that integrates seamlessly with partners including Mastercard and Volvo Car USA.

With Cognizant leading the technology orchestration across all systems, this initiative marks a significant step in NCTA's journey to modernize tolling operations and reduce infrastructure dependency. It aims to eliminate the need for traditional toll transponders, allowing drivers to pay tolls directly through Volvo's infotainment system. Cognizant's IoT and API development capabilities are expected to be central to enabling a successful proof of concept (POC), laying the foundation for infrastructure-less tolling and immediate revenue recognition for NCTA.

"We are excited to collaborate with Cognizant and our other pilot partners to bring our vision of modern, infrastructure-free tolling to life," said James J. Eden, Executive Director of the N.C. Turnpike Authority. "This partnership is a critical milestone in our mission to deliver innovative, customer-centered transportation solutions for North Carolina."

The tolling industry has long been reliant on labor-intensive and capital-heavy systems. NCTA is pioneering a shift toward agile, digital-first tolling models, and Cognizant is proud to support this transformation with its deep expertise in building back-office systems for tolling agencies across the U.S.

"This engagement with NCTA represents a major opportunity to reshape tolling operations in the U.S.," said Vishal Attal, Vice President and Head of Transportation and Logistics business at Cognizant. "With a total addressable market of $1.6 billion in the U.S. alone, we're thrilled to help NCTA lead the way in tolling innovation and deliver measurable outcomes through technology."

About North Carolina Turnpike Authority
To help keep pace with the transportation needs of the state, NCTA plays a critical role by studying, planning, developing and building toll facilities on behalf of communities that request them. With innovation and customer-centered service at its core, the Triangle Expressway was the first toll road in the country to utilize all-electronic tolling technology from inception. To learn more about the NCTA, visit ncdot.gov/divisions/turnpike.

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes, and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

For more information, contact:

Maribel Lopez
Cognizant
Maribel.Lopez@cognizant.com
(551) 293-1279

Logen Hodges
NCTA
Llhodges4@ncdot.gov
(919) 695-6611 

 

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SOURCE Cognizant Technology Solutions Corporation

FAQ

What is the partnership between Cognizant (CTSH) and North Carolina Turnpike Authority?

Cognizant is partnering with NCTA to develop a next-generation tolling back-office system that enables infrastructure-less tolling through Volvo's infotainment system.

How large is the market opportunity for Cognizant's (CTSH) tolling system in the US?

The total addressable market for the tolling system is $1.6 billion in the United States.

What companies are partnering with Cognizant (CTSH) in the NCTA tolling project?

The project includes partnerships with Mastercard and Volvo Car USA, integrating with their systems through API-driven architecture.

How will Cognizant's (CTSH) new tolling system benefit drivers?

The system will eliminate the need for traditional toll transponders, allowing drivers to pay tolls directly through their Volvo vehicle's infotainment system.

What technology is Cognizant (CTSH) using for the NCTA tolling system?

Cognizant is utilizing IoT and API development capabilities to create a scalable, API-driven architecture that integrates with various partners.