Setting Standards, Unleashing Innovation

Ian Maddocks, NFC Forum Board of DirectorsNFCP Global SummitJune 4-5 | London

NFC Industry Update

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Global Market Situation

Recent Developments Wearables market takes off Nationwide NFC payment device

rollouts in US New HCE feature in Android 4.4 Global payment networks launch

HCE solutions Major North American coffee

shop launches NFC pay First NFC-enabled household

appliances launched New NFC/Bluetooth LE solutions

– Smart thermostats, hybrid beacons

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Analysts Agree

ABI Research– 125M NFC handsets shipped in 2012; 285M shipped in 2013; 500+M in

2014 – NFC-enabled smartphone shipments are anticipated to increase by 481%

from 2012 to 2015

Berg Insight– 1 in 3 mobile phones will come with NFC by 2017– From 2012 to 2017, installed base of NFC handsets will increase at a CAGR of

65% to reach 2.1bn units– By 2017, the penetration rate for NFC in handsets will reach approximately

32%

Gartner – 50% of smartphones will have NFC capability by 2015

IHS Technology– Two in three phones will come with NFC by 2018– Annual shipments increasing from 275M units in 2013 to 1.2B units in 2018

Juniper Research– 1.5B+ mobile wallets in use around the world by 2018– By 2017, 1 in 4 US consumers will use NFC-enabled devices to pay for goods in-store

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NFC Phones Available Now(Representative)

Flagship models with NFC Samsung Galaxy S4 &

S3 LG G2, select Optimus

series HTC One series Motorola Moto X Blackberry Z10 & Q10 Nokia select Lumia

series Sony select Xperia

series Google Nexus 4/7/10,

Galaxy Nexus Android, BlackBerry,

Windows Phone 8all support NFC at operating system level

100% of Top 25 Amazon US contract phones 5

DLI 9000

NFC Tablets(Representative)

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NFC-enabled tablets on the market or coming soon

Google Nexus 7 Kuoziro FT701W

Asus Vivo Tab/Tab RT

HP Elitebook Revolve

Google Nexus 10

Asus Padfone Infinity Asus Vivo Tab

Smart

Asus Padfone 2

BWC ToughSlate Fujitsu Arrows Tab

HP Elitepad 900

Asmaitha Sruta 7” Tablet

7″Cetrix CT973G Cetrix CD661

Samsung NFC-enabled laser printer

More NFC Devices

Additional types of NFC devices available now or on the way

Moneto: NFC microSD for the

iPhone & Android

Revosys V5 taxi terminal/tablet

ViVOtech NFC payment terminals

Sony RC-S380 reader/writer

Glidepoint NFC trackpad

Smart Meters for utility companies

Nintendo Wii U controllers

BarclayCardPayment wristbands

RhythmTrak Heart Monitor

I-O Data WiFi Router

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What Device Availability Means

NFC more widespread and accessible

Growing familiarity

New business opportunities

Growing consumer demand

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The NFC Forum

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Mission and Goals

The mission of the NFC Forum is to advance the use of NFC technology by:

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Developing standards-based specifications that ensure interoperability among devices and services

Encouraging the development of products using NFC Forum specifications

Educating the market globally about NFC technology

Ensuring that products claiming NFC capabilities comply with NFC Forum specifications

Promoting the NFC Forum N-Mark

NFC is Based on Standards

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NFC Communication Modes

Connect the world of apps with the physical world …Apps jump into the world and touch people, objects and other apps.

Connect devices through physical proximity … magical connection of devices by simply touching them. A true device “hand shake”.

Connect to a common infrastructure …Incorporates the use of a secure elementto allow your phone to act like an “interactive card” for payment, transportation, ID and physical access

Tag/Card Reader/Writer (Terminal)Multi-standard (ISO/IEC14443, JIS X 6319-4/Felica, ISO/IEC15693)

Card Emulation (Secure Element, HCE)EMVCo/ISO/IEC14443, JIS X 6319-4/Felica

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Peer to Peer (Device to Device)NFCIP-1, NFCIP-2 (ISO/IEC18092,

ISO/IEC21481)

NFC Forum Architecture

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Specification Development

21 NFC Forum specifications approved spanning: Data exchange formats Tag types Record type definition Device interface controller Protocols Reference applications Personal Health Device

Communications

www.nfc-forum.org/specs/spec_dashboard/

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New Set of Integrated Specifications

NFC Activity 1.1 Connection Handover

1.3 NCI 1.1 Digital Protocol 1.1 LLCP 1.2 Type 1/2/3/4 Tags

… designed for use together to streamline and accelerate NFC product development

Mediated Handover: A new featureof Connection Handover 1.3

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Compliance Program

Compliance Committee

Comprises 2 programs driving interoperability: Certification:

conformance to specifications

Plugfests: successful interaction of NFC-enabled devices

More N-Marks in the World

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2,708 downloads since 2009

2009 2010 2011 2012 2013

198 217

517

722

843

N-Mark Licenses per Year

Unleashing Innovation

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SIGs: Special Interest Groups

2-way industry communication makes this work Obtain business requirements for possible specifications

and certification implications Work on education and guidelines for each industry,

deliveringwhite papers, demos, best practices, how-to guides, etc.

Look at NFC from consumer and vertical perspectives, making sure the value proposition is there

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Delivering first-generation NFC

Preparing for the next

CE PaymentRetail HealthTransport New

Created and published by NFC Forum and IATA

Document downloadable from the NFC Forum webpage

Goal: Help the air travel industry to better understand and evaluate potential benefits and costs, use cases, and implementation options associated with NFC technology

Numerous practical applications of NFC associated with the air traveler's journey are described in detail (focus on provisioning and redemption of boarding passes)

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Air Transport Task Force

Updated Bluetooth Secure Simple Pairing with NFC Application Document

guides developers in building solutions that seamlessly combine Bluetooth and NFC

Updated to include Bluetooth® Smart devices and Bluetooth LE

Product of formal liaison with Bluetooth SIG signed last November

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Wi-Fi Alliance Pushes the NFC Button

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Wi-Fi CERTIFIED Wi-Fi Protected Setup™ now includes NFC “tap-to-connect” for simple setup of security-protected Wi-Fi devices and networks

Extends the reach of Wi-Fi Protected Setup to smart home devices (refrigerators, thermostats, security systems) with a single tap

Key enabler for the Internet of Things

Liaison Partners

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NFC Is Here!Still Some Challenges to Overcome

1 NFC adoption varies by region.

2Payment is complex due to multiple players and business models. Solutions and simpler models like HCE are underway.

3 Customer awareness limited outside Asia, fewer opportunities to experience NFC.

4 The NFC Forum is the place to foster adoption and help overcome challenges.

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Thank You… and Join Us!

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