nfc basic concepts
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NFC Basic ConceptsTRANSCRIPT
The Basic Concepts of NFC
and it’s future within Mobile Commerce
Author: Ade Okuboyejo
NFC Technology
Near Field Communication (NFC) is a standards-based short-range wireless connectivity technology for electronic devices
A set of standards Range typically up to 10cm Frequency 13.56 MHz Data rates 106,212,424 kbits No battery required
NFC Uses
NFC Tag Types/modes of operation Active mode of communication: In the
active NFC mode of communication, both devices generate an RF signal on which the data is carried
Passive mode of communication: In this mode of communication, only one NFC device generates an RF field. The second passive device which is the target uses a technique called load modulation to transfer data back to the primary device or initiator
Tag Types:There are several tags specified by NFC forum (Type 1,2,3,4) and each type of cards are suitable for specific task depending on the use case. Type A and B are both based on 13.56MHz but the difference concerns modulation methods
Attach an NFC module to the device peer-to-peer mode : Use the NFC device to
interact with another NFC device e.g. Phone to phone transactions
reader / writer mode : Use the NFC device to read / write external tags
e.g.Mobile as a POS terminal
card emulation mode : Use the NFC device as a tag for external readers
e.g. Mobile as a payment card
NFC Communication modes
Mobile as a payment card, why?
Plastic card Secure element + NFC link
NFC enabled module Secure Element (SIM/UICC card) Co-operating application processor and a
(G)UI OTA (Over The Air) channel
Mobile NFC payment actors
Basically a marriage between banks, MNOs & SPs Several banks and MNOs exist in a given market
A facilitator will simplify the relationships TSM (trusted service manager)
TSMActs as a bridge between SP’s, MNO’s and the final customer, providing trusted services securely over the mobile network. A TSM can also be applicable to non-NFC provisioning
Secure Elements
Host Card Emulation (HCE), which enables NFC payments and other secure services to be delivered without the use of a physical secure element is also an option
TSM TypesSEI TSM manages Secure Element(SE) lifecycles and Secure Domain(SD) for Service Providers(SP) e.g. Partitioning securely SE memory into separate domains for SP’s
SP TSM manages the service provider application provisioning to the SE and its application lifecycle
Secure key storage Secure physical premises High quality processes Security built in deployed solutions
Payment schemes such as Visa and MasterCard require stringent certification criteria
To manage end-2-end security, a key ceremony takes place between:
1. Banks & TSM2. MNO’s & TSM
The TSM is then able to unlock the SE and establish an encrypted link between the SE and the TSM server
TSM Certification
Mobile NFC payments architecture
NFC Standards
ISO 14443 (Contactless Integrated circuit cards, proximity cards) Standardises physical characteristics, radio interface, initialization/anti-collision
& transmission protocols Type A & B depending on radio interface
ISO/IEC 15693 (Contactless Integrated circuit cards, vicinity cards ) RFID item tracking
ISO/IEC 18092 or ECMA 340 (Near Field Communication interface and protocol, NFCIP-1)
Standardises RF field/signal interface, initialization/anti-collision & transmission protocols
Active and passive RF modes, peer-to-peer mode Several data rates
ECMA 352 or ISO 21481 (NFCIP-2) Specifies operating mode selection (ISO 14443, 15693, NFCIP-1)
NFC Module
NFC Reader
UICC-NFC module interface
ETSI TS 102 613 : Single Wire Protocol (SWP) Implementations (mobile handset & UICC) are beginning to
emerge SWP specifies only hardware layer & an overlay software standard
is necessary ETSI TS 102 622 : UICC-Contactless Front-end interface, Host
Controller Interface (HCI) Provides a software (API) standard on top of SWP Implementations (mobile handset & UICC) are yet to emerge
UICC
NFC module
Application processor – UICC interface Hardware/low level standards 3GPP TS 11.11 SIM-ME interface/ETSI TS 102.221 UICC-Terminal
Interface ISO 7816 based communication Serial,low speed (9600 bps) Physical (hardware) & Logical (API) Implementation widespread
ETSI TS 102 600 Smart Cards : UICC-Terminal interface, Characteristic of the USB interface
Fresh specification Also known as high spec interface Speeds up to 12 Mbps Implementations yet to emerge
Appl. processor
UICC
Application processor – UICC interface Software/ high level standards 3GPP TS 11.14 SIM application toolkit /ETSI TS 122.038 USIM
application toolkit/ETSI TS 102.223 (Card Application Toolkit) Enables UICC to take initiative (proactive) Implementations widespread but full implementation on the terminal side is
rare Boring text based MMI
JSR 177 Security and Trust services API for J2ME Initiative from application processor (Midlets) Implementations reasonably widespread
OMA SmartCard Web Server (SCWS) Initiative from a browser on the phone Implementation is not widespread Rich graphical MMI is possible
Appl. processor
UICC
Application processor – NFC Module interface No widely agreed hardware standard (12C, USB etc)
Probably not so important for service providers since the terminal manufacturer integrates NFC module in the mobile
NFC Forum’s work on NCI (NFC Controller Interface) Standardisation of APIs for this interface Ongoing work
JSR 257 Contactless communication API for J2ME Specifies high level APIs for this interface Nokia has already implemented it on 6131_NFC
Appl. processor
NFC module
OTA Standards/Technologies
GlobalPlatform Initiative from the financial industry Security domain creation and manipulation on the UICC Secure channel protocols (SCP) Commands for Secure application download/install/delete/lock etc
3GPP TS 03.48/ETSI TS 102.225/226 Remote APDU structure for UICC based applications (push data
directly to the UICC from a remote server) Aligned with GlobalPlatform commands
Midlet proxy method Use a midlet in the mobile to proxy communication between the server
and the UICC
OTA Server
UICC
NFC Forum
Committees
Working Group
Task ForceArchitecture, Test tool, RF testing. Air transport, Tags & Formats, Wireless charging
Marketing, Compliance, Technical
Testing, security, NFC devices, Interfaces, Digital, Compliance program, Payment, Retail, Transport
NFC Forum standards NFC Data Exchange Format (NDEF)
The basic format (bit level) in which data are stored in NFC tags (or devices).
Record Type Definition (RTD) specification High level definition of different types of NDEF records (ie
information and action) Text, URI, Smart Poster
Tag type technical specification Tags are categorized into four main groups.
mCommercemCommerce is essentially electronic commerce over wireless devices. It helps to connect merchants and consumers via smartphone using technologies such as NFC and QR codes
3 types of mCommerce transaction are:• Carrier based transaction• Use of credit card over a wireless network• Financial services
Benefits of mCommerce are:1. Increase sales and customer loyalty2. Reach target market in real-time via ad
Partnership/Alliances• Common Mobile Marketing Platform (includes Weve, Isis, WyWallet)• Global Ticketing Interoperability
mCommerce Automated Work FlowKey actors• Consumers• Companies (manufacturers, retailers etc)• MNO’s and SP’s• Enablers and Regulators
Inventory updateAccount updateShipping detailsshipping label
Payment gateway transfers the fund to the merchant’s bank account
The online store transmits the formatted order from the web host to the payment gateway
Online buyer purchases a product at merchant site
Consumer’s information is encrypted while being transferred over the internet
The payment gatewaycontinues processing the transaction, it then transmits a request for the card to be changed to MEPS for validation
Transaction confirmation.Shipping and tracking information
PRODUCT RECEIVED
mWalletIs the graphic user interface used to control the card applications stored on a handset. A kind of electronic purse
Issuers of mWallet can benefit from:• Increased revenue through new value added
services• Multiple branding possibilities• Enhanced brand stickiness• Market reach to new segments• Harness NFC opportunities
End-users of mWallet can benefit from:• Ease of use and convenience• Flexibility• Specialised offers• Ubiquity• Security and Confidence• Person 2 Person money transfer• International remittances
Google Wallet
• Enable secure payments to be made using NFC
• The new Android 4.4 introduces HCE• Possibility exists to sidestep SE and
TSM• Softens the influence of telco-run NFC
schemes such as Isis in dictating the direction NFC takes
Google Wallet is a mobile payment system developed by Google that allows its users to store debit cards, credit cards, loyalty cards, and gift cards among other things
NFC, hype or reality NFC handsets
Few models already in market Motorola, LG, RIM etc have
announced commitment to NFC 500 million units by 2015 Cost coming down as the volume
grows
NFC tags List price of NFC tags is as low as
$0.16
Revenue Stream
Future of NFC
Mobile NFC opens up new opportunities in payment, banking, airline ticketing, online shopping and transport
Most of the crucial standards are already in place, but implementation are not sufficiently widespread
The rollout of SCWS would provide a new environment in which to develop, execute and distribute content rich applications from the SIM thereby complementing NFC
Mobile NFC is now finding it’s uses in phone to phone data exchange, ticketing and payment. This will continue to grow as more NFC handsets are available and interoperability issues are addressed
Difficulties
Lack/cost of NFC mobile phones Compatibility with existing contactless infrastructure Cost of high memory, multi-application UICC cards Existing proprietary implementations (Mifare, FeliCa) does not
fully comply with existing contactless standards
Thank you!
Glossary
OMA Open Mobile Alliance
USIM Universal SIM
USAT USIM Application Toolkit
BIP Bearer Independent Protocol
3GPP 3rd Generation Partnership Project
ETSI European Telecommunication Standards Institute
TSM Trusted Service Manager
HCE Host Card Emulation