nfc: accelerating momentum, expanding opportunities

NFC: ACCELERATING MOMENTUM, EXPANDING OPPORTUNITIES

Paula Hunter

NFC Forum Executive Director

NFC Solutions Summit

October 7, 2015 Advancing Near Field Communication Technology

NFC AS DEFINED BY THE NFC FORUM

Advancing Near Field Communication Technology2

3

NFC IS BASED ON STANDARDS

NFC DEVICES OPERATE IN 3 MODES

Card Emulation

4

Tag/Card Reader/Writer

Connect the world of

apps with the physical

world

Connect devices through

physical proximity

Connect to a common

infrastructure …3

2

1Peer to Peer

NFC INDUSTRY UPDATE


NFC MARKET OPPORTUNITY


.

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NFC PHONES AVAILABLE NOW

• 330+ models

worldwide

• 1 billion in market

now

• Over 2 billion by end

of 2016

MOBILE NFC PAYMENT IS EXPANDING GLOBALLY


• Supports open development

• Carriers on board

• HCE-based payment projects

all over the world

• Ongoing Infrastructure Investment

EMV adoption/Liability Shift enlarges acceptance point deployment

Full scale deployment of Mobile Payment in US

Apple Pay

• 1M users within 72 hours

• 2500 banks, 1M locations

• Expanded to UK in June

Android PaySamsung Pay

• Just launched in S. Korea, US

• $30M/mo. In S. Korea

• NFC + MST

HOST CARD EMULATION BREAKTHROUGH


Open

Global, Software basis, and scalable

Flexible security3

2

1

Over a billion units available in

the global market

Opens up use of card emulation

to everyone from developers to

large entities

Security can be tuned to

what the service will require

HCE IN ACTION


VISA EUROPE/WORLDLINE


● First implementation of Visa cloud-based

payments

● Developed for Android 4.4+

● Pilot launched last May in Germany

AMERICAN EXPRESS


● 1st Amex HCE implementation

● PBZ: 2nd largest bank in Croatia

● Subsidiary of Intesa Sanpaolo (#2

bank in Italy)

● Opportunity to expand to 12 other

Intesa groups in 11 countries

BANKINTER


● Top 6 Spanish bank

● Launched Sept. 2014

● Developed in partnership with Seglan

● Seeking licensing to other banks

ING


● World‘s largest financial

services conglomerate

● NFC HCE trial launched in

Netherlands in September

● Android KitKat 4.4+

● 5,000 customers initially

BARCLAYCARD


● Europe‘s leading issuer of

credit cards

● Adding HCE to mobile app

● Launching in November

● Simple opt-in process

● 300K retail locations and

London Transport

ROYAL BANK OF CANADA


● Largest financial institution in

Canada

● First HCE deployment in

North America

● Launched in September

● Patented platform

WHAT’S NEXT FOR NFC?


THE INTERNET OF THINGS ...


... AND THE CONNECTED CONSUMER

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DELIVERING ONE-TAP SIMPLICITY TO TASKS OF ALL KINDS

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BRINGING INTELLIGENCE AND EXTENDING THE REACH OF NETWORKS TO UNCONNECTED OBJECTS

NFC ENABLES IOT AND THE CONNECTED CONSUMER


IOT/CONNECTED CONSUMER REQUIREMENTS


Easy

Network

Access and

Data Sharing

User Control

with

Expressed

Intent

Data

Security at

Multiple

Levels

Ability to

Connect the

Unconnected

Only NFC Provides:

EASY NETWORK ACCESS AND DATA SHARING BETWEENDEVICES


● No lengthy handshaking

● No user data entry required

● No additional user interface required

● Fast, error-free data sharing

USER CONTROL WITH EXPRESSED INTENT


● Simple, intuitive means of user intent to

initiate action

● Sure and consistent

● User options to set and enforce preferred

degree of control

DATA SECURITY AT MULTIPLE LEVELS


● Built-in features that limit

opportunities for eavesdropping,

man-in-the-middle attacks

● Easy-to-deploy options for additional

protections to match each use case

● Tools to set and enforce security

preferences Secure Element

App-Level Security

User Settings

Digital Certificates

Range Limit

THE ABILITY TO CONNECT THE UNCONNECTED


● It‘s The Internet of Things, not The Internet

of Electronic Things

● Need a way to embed intelligence in

unpowered, unconnected objects and things

● Need a way to gather data from unpowered,

unconnected objects and things

BENEFITS OF THE CONNECTED WORLD

● Increased productivity

● Fewer steps

● Less data re-entry

● Greater, easier control

● Better coordination

● Data analytics

● Cost savings

Juniper Research: 38.5 billion connected devices by 2020

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NFC TRACKS VINTAGE WINES

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● Temperature/humidity sensors in fine wine cases

● Provides data en route with a tap of an NFC-enabled device

● Tracks cold chain for quality

● Ensures provenance

NFC SUPPORTS THE CONNECTED HOME

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● Smart Lighting

● Link energy-harvesting wireless light switches to a home network with a touch an NFC-enabled phone

● Simplifies setup and control

NFC AUTHENTICATES COLLECTIBLES

●Luxury Goods and Collectibles

Embedded NFC tags in luxury goods

enable consumers to verify their

authenticity

NFC tags in collectible footballs used in

college games provide proof of

authenticity and the ball’s history


NFC BRINGS ONLINE OFFERS TO PRODUCTS

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● NFC adds fun and excitement

to everyday consumables

NFC tag in cereal box insert

Delivers fully customizable offers

HOW THE NFC FORUM IS LEADING THE WORK


NFC FORUM MISSION


● Develop standards-based NFC specifications

● Encourage the development of products based on NFC Forum specifications

● Work to ensure that products claiming NFC capabilities comply with NFC Forum specifications

● Educate consumers and enterprises globally about NFC

Specifications &

Application Documents

Compliance Branding

THE NFC FORUM REPRESENTS


• All of the world’s major mobile

operating system providers

• All of the leading NFC payment service

providers

• All of the major NFC chip vendors

• Billions of smartphone users

SPONSOR MEMBERS

Advancing Near Field Communication Technology

PRINCIPAL MEMBERS

ASSOCIATE MEMBERS


IMPLEMENTER MEMBERS


NON-PROFIT MEMBERS

THE UNIVERSAL SYMBOL FOR NFC

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More than 3,300 licenses

LIAISON PARTNERS

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HOW THE NFC FORUM IS DRIVING ADOPTION

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Harmonize existing contactless standards

Enable new applications and services

22 Specifications published

Over 50,000 downloads

Technical Specifications

Advance NFC initiatives

Influence new technical specifications

Create new business alliances and opportunities

Contribute to the growth of NFC

Collaborate with over 165 companies worldwide

Special Interest Groups (SIGs)

Collaborate with industry stakeholders to determine

most pressing needs and promising directions

Ensure that new NFC solutions are future-safe

Work across Consumer Electronics, Health Care,

Payment, Retail and Transport business sectors

Membership

Establishes strong foundation for NFC

implementations

Fosters gold standard of confidence and credibility

25 authorized labs; 7 validated test tools, over 100

certified devices

Plugfests for testing interoperability and compliance

Compliance Program

http://nfc-forum.org/

THANK YOU!

Please join us at the NFC Forum:

http://nfc-forum.org/about-us/join-the-forum/


IMAGE CREDITS


Slide 4: MarketingPilgrim.com

Slide 11: Visa Europe

Slide 14: ING

Slide 15: Barclaycard

Slide 18: Samsung

Slide 19: LG; RapidNFC; Coca-Cola Co.; Sony

Slide 20: Opus One Winery; Egeetouch.com; Kraft Foods

Slide 26: Signbox; Shenzhen Chuanxinjia RFID Tag Co., Ltd.; Samsung; Atuch.com

Slide 28: eProvenance

Slide 29: EnOcean

Slide 30: Big Game USA/PROVA Group

Slide 31: NXP