NFC Mobile Payments 2016 What’s Next?

Terunao Tsuchiya, NFC Forum Board of Directors, Dai Nippon Printing

Asia Pacific Smart Card Association

March 11, 2016, Tokyo

NFC Mobile Payments 2016 What’s Next?

Advancing Near Field Communication Technology2

The NFC Forum brings the

convenience of NFC

technology to life. We

empower organizations to

deliver secure, tap-based

interactions with an

intuitive, reliable experience

to users around the globe.

NFC FORUM MISSION

STRATEGIC FOCUS FOR 2016

3

Transportation

Internet of Things

Payment Pervasive use of

contactless

payment via mobile

devices

NFC technology an

accepted element and

the tool of choice for

non connected

devices

Growing access and

increased usage rates

of NFC technology in

PTOs worldwide

LATEST MARKET DEVELOPMENTS


NFC MARKET GROWTH (CAGR)

5

43.7%50.6%

2014 - 2019Source: Technavio

2013 - 2019Source: Transparency Market

Research

Advancing Near Field Communication Technology

GLOBAL MOBILE PAYMENT GROWTH


0

2000

4000

6000

8000

10000

12000

2015 2016 2017 2018 2019

Revenue (US $100M)

Revenue (US

$100M)

Source: TrendForce, Feb. 2016

NFC PAYMENT, TRANSPORTATION AND IOT IN ACTION


MOBILE NFC PAYMENT IS EXPANDING GLOBALLY


• Supports open development

• Carriers on board

• HCE-based payment projects

all over the world

• Accelerating contactless infrastructure investment

Full scale deployment of Mobile Payment in US

Apple Pay

• Thousands of banks

• Millions of locations

• US, China, Canada, UK, Australia

Android PaySamsung Pay

• Launched in S. Korea, US

• 5M Users in S. Korea, US

• NFC + MST

NFC IN PAYMENT GROWTH

9

● Two of the four largest Australian

banks rolled out mobile pay for all

customers

● Barclaycard completed deployment of

HCE to mobile app and sees 164%

increase in contactless transactions

● Largest multi-bank payment solution

with 200 Scandinavian banks

announced

Within the past month:

Source: NFCWorld+

Mobile payment methods will see a five-

year compound annual growth rate of

more than 43% to $4 trillion in 2020. Source: IDC

https://www.idc.com/getdoc.jsp?containerId=FI256909

NFC IN PUBLIC TRANSPORT GROWTH

10

● Netherlands launched Android-based

NFC public transport payment trial

● Moscow launched NFC public

transport ticketing

● UK Cards Association announces

framework for nationwide NFC public

transport payment

Within the past month:

Source: NFCWorld+

An estimated 1.5 billion boarding passes will

be issued via smartphone by 2019 Source: Juniper Research

http://www.juniperresearch.com/press/press-releases/1-in-3-airline-boarding-passes-issued-via-mobile

THE INTERNET OF THINGS ...


... AND THE CONNECTED CONSUMER

NFC IN INTERNET OF THINGS GROWTH

12

● Energy harvesting for the connected

home

● Luxury goods and collectable

authentication

● Tracking and monitoring sensor data

IoT solutions in use right now:

According to IDC, IoT spending will top $1.4

billion by 2019 Source: IDC

http://www.businesswire.com/news/home/20151210005089/en/Internet-Spending-Forecast-Reach-1.3-Trillion-2019

PARADIGM SHIFT: WHAT NFC BRINGS

13 Advancing Near Field Communication Technology

FROM COMPANY DRIVEN TO INDUSTRY DRIVEN

14

1 model, Global MarketMarket Structure Shift

Regional base to Global base

NFC Popularity in B2C productIndustry Structure Shift

Vertical to Horizontal Integration

Standard Feature on Mobile OSApp Development Process Shift

MNO centric to Mobile OS centric

Product Enhancement

Card/RW to Mobile/Embedded device

Next StageSecurity: Chip base to total optimization

New feature: Wireless Charging

Economies of Scale

Industry Driven


2 BILLION CLASS PLATFORM

15

● Impact on B2C market

Billions of deployed NFC devices now available to support your service offering

New use cases can be introduced on Day 1 over the platform

● Impact on B2B market

Enables easy development of contactless applications without dedicated equipment

Commoditization of acceptance terminal

Market figure of FY2014: POS terminal 30M unit vs. NFC device 500M unit


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

Small Form Factor

• Advantage of 13.56MHz, small antenna

• Possible adoption with limited space

Single Antenna

• Enable charging over NFC without any other

antenna implementation

Foreign Object Detection

• Fracture prevention of NFC Tag

• Auto suspension in case of object detection

Transmission Power Configuration

• Power optimization depends on target device

INTEGRATION OF COMMUNICATION AND CHARGING

17

Field PowerControl

Receiver

TransmitterTransmitter

6W1W

＋ α ？


ROLE OF THE NFC FORUM

NFC Forum


THE NFC FORUM REPRESENTS


All of the world’s major:

● chip vendors

● payment service providers

● smart phone manufacturers

● mobile operating system providers

SPONSOR MEMBERS


PRINCIPAL MEMBERS

20

ASSOCIATE MEMBERS


IMPLEMENTER MEMBERS


NON-PROFIT MEMBERS

NFC FORUM SPECIAL INTEREST GROUPS

23

Special Interest

Groups (SIG)

Technical

Committee

Japan

Task Force

Six Working Groups lead

technical discussions, and

create and maintain all

aspects of the NFC Forum

technical specifications.

Activities are open to all

members except Implementer

members, with voting rights

for Sponsor and Principal

Members.

SIG Working Group and Task

Force activities build value

across key market sectors.

Efforts are open to all

members.

Three Working Groups

manage the framework for the

NFC Forum Certification

Program and Plugfest Events.

Activities are open to all

members except Implementer

members, with voting rights

for Sponsor and Principal

Members.

This group was established to

promote NFC to this regional

market and overcome the

challenges of migration from

its legacy infrastructure. Key

players in the region have

been sharing NFC use cases

and best practices, as well as

identifying opportunities to

expand activities with the SIG

Working Groups.

Compliance

Committee


LIAISON PARTNERS


WE WANT YOU:

BECOME A LEADER RAPIDLY GROWING NFC INDUSTRY

JOIN THE NFC FORUM!

For more information on how to get

involved: http://nfc-forum.org/


THANK YOU!

Questions?


NFC Mobile Payments 2016 What’s Next?

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