Jan Němec

UpTeq R&DGemalto

Co je a bude NFC?

Co je a bude NFC?2

Co je a bude NFC?

• NFC architektura a ekosystém

• Payez Mobile pilot• Očekávání a trendy

• Role a odpovědnosti• Standardizace

Co je a bude NFC?3

Reader ModeReader ModeCard emulation modeCard emulation mode

Peer to Peer modePeer to Peer mode

TransportPass, Access, Payement …..

SmartPoster or TAG Reading..

P2P data exchange

Working Mobile Off or Battery Off

NFC komunikace

Reference : date Gemalto 4Co je a bude NFC?

4

Mobile NFC architektura

SIM � Application (java)� User credentials� Open Platform enabled

NFC chipset = CLF� RF layer, CLT mode (mifare)� Multi-protocol(type A, B, felica, 15693. Emulation / Reader)� Inside contactless, ST, NXP

Standardized (ETSI 102.622)

Recommended by

RF antenna

SWP - Single Wire Protocol� 1.5 Mbit/s� Battery off mode� Open solution (free IP)

HCI - Host Controller Interface � Communication interface between

e-NFC chipset & SIM

Standardized (ETSI 102.613)

OTA

Reference : date Gemalto 5Co je a bude NFC?

5

Multi-aplikační platforma

…TransportInfoTransport

Crypto

Transportapplications

GSM(U)SIM

MNOServices

Events Ticketing

SmartPoster

CreditCard

E-purse

LoyaltyMNO

applications

Bank applications

MNO applications

GSM(U)SIM

MNOServices

Events Ticketing

SmartPoster

Oddělení aplikací je nutností nejen pro bankovní sektor

Co je a bude NFC?6

HardwareJava Card

Global Platform

RAM

RFM SIM

Platform UICC

SIM USIM API

SIMUSIM

RFM USIM

File System

USIM

NFCTransport

Applet

NFCBank

Applet

SIM

Applet SIM toolkit

ISDCard

manager

ISD

SD SD

RAM: Remote Applet ManagerRFM: Remote File Manager

File System

SIM

Global platform - architektura

Co je a bude NFC?7

MNO• Subsidies handset• Provides communication channel

to service provider• Provides generally Secure

Element

Payment scheme• Issues security requirements and

validates financial transactions

Bank• Operates the financial application

and guarantees the transaction security level

Transport• Operates the transport

application

NFC - hlavní účastníci

Co je a bude NFC?8

Handset manufacturer• May provide NFC connectivity• Provides handset with its User

Interface (screen/keyboard)

Secure Element manufacturer• SIM provider• SD card manufacturer

Terminal / reader provider

Software providers• Handset/SE application provider• OTA solution provider

Personalization Bureau• Data preparation

Trusted Service Manager• Key management• Data / application management

NFC - přidružení partneři

Co je a bude NFC?9

Customer

Merchant

NFC - koncoví uživatelé

Co je a bude NFC?10

Experience some delay but yet positive trend of commercial SWP NFC enabled handsets with latest standard to be available latest by Q1 2010

Significant works done in NFC standardizations to ensure the large scale deployment – see standard dashboard

Market are getting organized to kick off NFC services� Bilateral agreements � Collaborative approach – e.g. France, Singapore

More requests coming from service providers like banks, retailers – showing the positive momentum from the success of various NFC pilots

Vývoj za poslední rok

Co je a bude NFC?11

• 7 banks, 4 mobile operators, Visa Europe and Mastercard Worldwide

• 1000 consumers in 2 cities: Caen and Strasbourg

� Payment > 20€ -> PIN mandatory

� Payment < 20€ -> PIN optional

• Project live since November 2007

• First NFC project in the world with

� Several payment applications from different bank can be present at the same time in one SIM card. The end user then selects the card he wants to use.

� Payment app are pre-loaded but perso, post-issuance use cases done OTA

Payez Mobile pilot

Co je a bude NFC?12

Výstupy z Payez Mobile

The objective is to build the basis of commercial NFC deployment� Testing consumer experience

� Validating the target architecture (i.e UICC as secure element, payment personalization OTA)

A great consumer feedback >90% satisfaction� Merchants have found the waiting time reduction as the most important

advantage.

� Users showed a great interest in a new payment solution due to its intuitiveness, processing speed and practicality.

Project continues to prepare the commercial roll out� Working groups on business model, certification and interoperability

Co je a bude NFC?13

Convenient, fast, and easy to use Convenient, fast, and easy to use –– Above 90% Above 90% overall satisfactionoverall satisfaction

Users showed a great interest in a new payment solution due to its intuitiveness , processing speedand practicality

•• A new A new meanmean of of paymentpayment for for dailydaily transactionstransactions« It is very natural to pay with your handset »« It could become a very common way to pay »« I don’t imagine any reason not to use it »

•• ImmediatelyImmediately acceptedaccepted� Most trial participants are willing to use the service once

becomes available� Most convinced that service is secured

•• SomeSome raiseraise concernsconcerns ; ; � What if I lose my phone?� Need more selection of handset� Should be able to use the service with many merchants

Ohlasy uživatelů

Co je a bude NFC?14

A quicker, more efficient and A quicker, more efficient and convenient way to serve convenient way to serve customercustomer“In all cases it is very simple”“It is obviously faster than with a card“

Very easy to install and to useVery easy to install and to useVery easy to connect the contactless

reader to the existing PoS

Should be rapidly adoptedShould be rapidly adopted� Ideal for smaller transaction“Rather than fumbling for change”� Reduce payment processing time at

the point of sale

� 80% of retailers surveyed are aware of Mobile Proximity Payments today compared to 63% in 2007

� 52% of retailers are “exploring the use of mobile payment solutions within 24 months”

Source: Aberdeen Group – mobile contactless:A Merchant Perspective – Nov. 2008

Ohlasy obchodníků

Co je a bude NFC?15

• Different languages • Different time scales • Different security requirements• Different business model• Common customers

� Success in pilots came from open mind and willingness to co-operate between players

� A facilitator helps to match the different requirements

Mobile = global Payment = national Transport = local

NFC spojuje dohromady ...

Co je a bude NFC?16

Love convenient & Intuitive

Want to use it everywhere

Want value added services Want more use cases

Co uživatelé od NFC očekávají?

Co je a bude NFC?17

• Bank driven by new revenues and CRM� Replace cash in low value transaction� Fast activation and distribution of new payment card � Brand image, One-to-one CRM channel� Increase mobile banking users, minimize traditional retail interface

• Transport driven by cost saving� Eliminate physical ticket distribution cost and operation of reload m/c� Improved Security/Less fraud� Cross Marketing opportunities / bundles e.g. timetable, map, advertising

• Merchant driven by customer retention� Speed, throughput, customer satisfaction� One-to-one marketing e.g. targeted advertising, loyalty program� Personalize customer relationship/ interactive

• MNO by new revenue and churn reduction� Improve customer loyalty through SP-customer link e.g. bank� Revenue from multiple SPs� Positioning: offer innovative and convenient solution for customer e.g. transport app

and auto-topup, corporate access� Brand image� Data mining (combining with LBS): opportunities to draw advertising revenue

Co očekává trh?

Co je a bude NFC?18

All stakeholders require profitable business cases to grow

Jak tato očekávání naplnit?

Co je a bude NFC?19

• There is no one universal business model

• Specific per country� Local configurations – MNO, SP, etc.� Different economic, technological, social and cultural factors

• Specific per application� Different revenue generation e.g. Per transaction, Per application download,

Per click, Per subscription

• Many markets are going commercial with bilateral agreement, first MNO, first SP (bank or transport), often with exclusivity

• Some markets are going toward collaborative approach where multiple MNOs, multiple SP agree on common requirements

• In Europe, no payment transaction fee for MNO

• Are your consumers willing to pay subscription fee for the NFC service?

NFC obchodní model

Co je a bude NFC?20

Provision and personalize NFC service on any mobile networks in real time with full security

Provision and personalize NFC service on any mobile networks in real time with full security

Securely manage end user data and application use cases

Securely manage end user data and application use cases

Service provider Mobile operator

Support end user eligibility check before granting the access to NFC service

Support end user eligibility check before granting the access to NFC service

Ensure the secure Over-the-Air access to Secure Element and overall security of SE

Ensure the secure Over-the-Air access to Secure Element and overall security of SE

Support service recovery in case of lost or change handset

Support service recovery in case of lost or change handset

Support service portability in case of changing mobile network subscription

Support service portability in case of changing mobile network subscription

Visibility over subscribers & services deployed in all MNO to support customer care, billing, stat

Visibility over subscribers & services deployed in all MNO to support customer care, billing, stat

Support device certification when requires i.e. payment

Support device certification when requires i.e. payment

Complete view NFC service deployed on subscriber base in real time to support customer care, billing, stat

Complete view NFC service deployed on subscriber base in real time to support customer care, billing, stat

Notify SP when end user environment change e.g. new UICC, terminate subscription

Notify SP when end user environment change e.g. new UICC, terminate subscription

Role a odpovědnosti

Co je a bude NFC?21

Service provider Mobile operator

• New and open environment, process is more complex, mobile is new form factor

• Facing different combination of end user environment i.e. MNO, SE, handset, wallet

• Require uniform interface to multiple MNOs

• Ensure end-to-end security, confidentiality and integrity of service application and associated data

• Minimize impact on SP legacy

• Seamless integration with SP i.e. easy to connect new SP and fast TTM

• Transparent to applicative use cases, ensure to support various service provider requirements

• Avoid generating unpaid and unnecessary customer care call.

• Able to support NFC subscriber growth

Common challenges:

• Comply with existing standard and future evolution especially when NFC technology is evolving

• Ability to grow value added services, CRM services

Co zbývá vyřešit?

Co je a bude NFC?22

• Secure provision and manage SP application on mobile NFC

• We handle SP challenges by� Provide single interface and cope with multiple MNO� Avoid unnecessary and duplicate investment

� Minimize impact on SP existing infrastructure and process

� Reduce commercial risk of service adoption � Ensure interoperability with different end user/MNO environment

� Manage security standards, certifications and technology evolutions

Možná úloha pro TSM

Co je a bude NFC?23

Přehled standardů

� SWP TS 102 613 v 7.4.0 � 7.6.0� HCI TS 102 622 v7.3.0 � 7.5.0� NFC Connectivity API

Available

� Amendment A - CCCM: GP 2.2; UICC Configuration� Amendment B - RAM over HTTP

� Amendment C - Application selection,NFC Registry,Size Quotas

� Embedded SE OTA Management� TSM APIs specifications (to SP and MNOs)� UICC platform Certification

Available

Available

Available

Ongoing

Ongoing

Ongoing

� TSM implementation guidelines

� Handset Requirement specification

� UICC Platform Certification process / Protection profile Requirements

� SIM/OTA Interoperability guidelines TBC

Ongoing

Available

Available

� NFC Handset digital certification label Ongoing

� Mifare4Mobile Specification published in Dec 2008Available

� CNA Specifications � ULYSSE specifications � DOFOCO from GART

Available

Available

Ongoing

� VISA/MC Mobile Payment Specifications� AEPM V2.1 specifications

Ongoing

Ongoing

Ongoing

Finalizing

�MNOs/Service Providers Interface Specification; cardlets; midlet dev guidelines

� The NFC Forum's N-mark is a trademark to be promoted to consumers where they can use their NFC device

Available

Reference : date Gemalto 24Co je a bude NFC?

24

Reference : date Gemalto 25Co je a bude NFC?

25

Děkuji a pěkný zbytek večera !