1. 2 nfc (near field communication) was hot keyword at mwc 2011 nfc based mobile credit payment nfc...
TRANSCRIPT
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2011. 5
Korea Communications Commission
Jin-Bae, Hong
NFC(Near Field Communication) BasedSmart Mobile Life Service
Action Plan of Korea
2
NFC (Near Field Communication)
was Hot Keyword at MWC 2011
1. Introdcution
NFC Based Mobile Credit Payment
NFC Based Mobile Payment for Public Transport
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1. Introduction(Cont)
Established action plan Standard of NFC based mobile application service Common infrastructure for NFC based mobile payments Development of NFC based application services
Evolving from the voice and data oriented service to the life service
Widely available smartphones, bi directional communication (NFC) based payment technologiesGlobal IT companies entering the service markets
Requests for development of basis for NFC based ‘Smart Mo-bile Service’
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Allows you to conveniently exchange the information/transaction by putting your mobile phone close to a detectorThe NFC based Mobile Smart Life Service: classified into mobile payment ser-vice and application services
NFC Based Mobile Smart Life
Mobile Payment Application Services
※ Mobile credit card, e-Money, P2P credit transfer, Mobile coupon, Membership, etc
2. Trends of NFC (Cont)
Door Lock
P2P Payment
Ticketing
Healthcare
Parking lot
SMS
Voice
Data
Entertainment
화Smart Coupon
Menu Order
Smart Guide
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2. Trends of NFC (Cont)
The NFC service includes the existing RFID and QR code services provide the NFC service become the center of attention.
Comparison of NFC and other services
RFID QR Code NFC
A type of two dimensional bar code. It reads the data with a digital camera or special scanner
Used to read object informa-tion in one direction the limited services such as distribution and history track-ing.
This technology enables bi di-rectional communication be-tween two terminals which are within 10cm away. wide range of applications
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2. Trends of NFC (cont)
Forecast of Global Market
(Unit : hundred million dollar)
NFC MarketNFC Market
Mobile payment
11,300
3,700
NFC market(2014)
< Ref : IR Market Research, 2010 >
2010
316
1,100%
2014
(Unit : million)
3,572
Usage of Mobile PaymentUsage of Mobile Payment
< Ref : Gartner, 2010 >
NFC Based DevicesNFC Based Devices
< Ref : H.I. Business Partners, 2011 >
2011 2015
152.4(8.3%)
2,763.3(85.9%)
(Unit : million)
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2. Trends of NFC (cont)
Status of NFC based mobile service in Korea and abroad
Technological TrendsService & Infrastructure
Abroad
Abroad
Domestic
Domestic
Infrastructure is in the early stage
Major companies such as Apple and Google
aggressively make efforts to pre-empt the global
market.
- (Apple) NFC based e-ticket patent application and next
generation terminal to introduce NFC payment services.
- (Google) Launching NFC supported terminals and acquiring
key technologies to secure the basis for advancement.
insufficient implementation of the NFC based
infrastructure
- (Payment machine) A small number of terminals can be
updated for smart mobile payment service. Most of them
require replacements.
- (Terminal) smart mobile payment terminal
(SHW-A170K, Galaxy S2 )will continue to expand.
A small number of companies such as NXP occupy
more than 80% of the market in NFC chip/controller.
- (NXP) with more than 80% of the NFC chip market.
Recently, it signed a strategic partnership with Google for
smooth NFC supplies.
- (STMicroeletronics) occupies 80% of the domestic
transportation card market.
5-6 NFC chip and solution companies are emerging.
- (Samsung) Declared its attempt to enter the NFC chip
market. Will start mass production in 1Q of 2011.
- (USIM) The domestic USIM makers will develop the NFC
based USIM and deliver them to the domestic mobile
communication service providers.
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2. Trends of NFC (cont)
Significant Implications
Requests for wide spread infrastructures
Need to discover NFC application services
Getting ready to lead the next generation NFC market
The domestic common infrastructure needs to be implemented to prevent du-plicate investments on smart mobile payment service and promote early wide-spread availability.To expand user base for smart mobile payment service, the spreading and pub-licity for availiabilty of domestic terminals with smart mobile payment function are required.
Using the NFC mounted terminal as a payment machine, we need to make var-ious application services for small retailers and highly mobile street sellers who can’t afford a card payment machine.
Need for advancement and discovery of various application services such as business card exchanges, tourism information and customized advertise-ments.
Strengthen the security of smart devices, so that they can manage and use var-ious payment and authentication information safely.
Establish a test environment for NFC based technology development and new business model verification in order to expand opportunities for small compa-nies to enter the global market.
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3. Vision
Vision
Goal(2015)
Project
Leading the NFC based smart mobile life services
Construction of the infrastructure
for new Mobile Smart Life services
Discovery andPropagation
of Mobile Smart Lifeapplication services
NFC Mobile
Payment
Machine : 70%
NFC Equipped
Terminals : 60%
Usage of Mobile
Payment : 60%
Leadership inthe next-generationMobile Payment and
services market
① Common Infrastructure
② NFC-Equipped Teminals
③ Standardization of
Service
① Common Infrastructure
② NFC-Equipped Teminals
③ Standardization of
Service
① P2P Payment
② Personal Authentication
③ Smart Information/Ad
① P2P Payment
② Personal Authentication
③ Smart Information/Ad
① Security Technology
② Smart Wallet
Technology
③ Testbed
① Security Technology
② Smart Wallet
Technology
③ Testbed
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4. Action Plan
Common Infrastructure and Standard
Early wide spreading of the mobile payment infrastructure and preventing duplicate investment by implementing a common infrastructure.
- In the past, as the service providers and the credit card companies fought against one another to lead the mobile payment market the market promotion was failed.
Set up standard for various application services in addition to mobile payment.
- Spread the NFC related international standards and prepare the standards for various application services and support distribution.
NFC based mobile application service standard development
① (Wide spreading of the international standard) Create various smart mobile application ser-
vices.
② (Application standard development) Need to develop standard for highly competitive NFC ser-
vices
ITU has to play more active role
Common infrastructure for NFC based mobile payments
KCC, Telco, Credit Card Companies, VAN,
KISA, ETRI, and MOIBA, etc. will partici-
pate in it.
Operation committee
Infra PilotTech
development Standard`
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4. Action Plan (Cont)
Terminal
At present, availability of NFC terminal is very low Develop distinguished strategies for new and existing terminals
Implementation of the basis for terminal distribution
Examples of alternative technology
< NFC Sticker > < RF Case >
NFC
< NFC & RF Incluide SIM >
…
Terminal to be launched
- Formulating and recommending the guideline
for NFC equipped phone
Terminal launched
- combine alternative technology
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Direct communication between NFC mobile phones to support credit payment/wiring/file ex-changes
Detects the tag information to provide customized ads/information.
Use with a built-in credit card or ID to support use for payments, tickets
Support NFC based application services
Mobile Payment Mobile Ticket Access Control
Card emulation
Reader
Peer to peer
Information Service (Smart Album/Smart Poster/Smart Station)
Business Card Exchange/File Transfer
…
One Touch Calling Service
Credit Payment/Credit Transfer
Receipt
P2P Payment Mobile Coupon
4. Action Plan (Cont)
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Leading the next generation mobile payment and application service markets
Security technology development Smart Wallet
TestBed implementation
Developing terminal security platform technology
to prevent information leakages caused by loss or
theft, access of unauthorized users to illegal data.
Developing technologies to protect smart phone users
and mobile service from malignant traffic & to prevent
arbitrary manipulations by other users
Security platform S/W development
Developing smart wallet technologies for NFC
based payment and authentication in a smart-
phone
※ Credit card, Public certificate, ID, Personal Information management
Developing domestic smart payment and
integrated authentication technologies for the
growing NFC based business.
Build pre testing environment for the compatibility and service performance of NFC service and terminals before entering
the commercial market.
4. Action Plan (Cont)
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5. Expected Benefits
The NFC industry will generate$950 million in productions, $320 million in addedvalues, and 5,707 jobs for the next 5 years
Convenience of users
Advance of NFC related technology and service Provide global competitiveness
Economic Effects
Various application services will bring convenienceby integrating on-line and off-line services into mobile phones
Technical Effects
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Thank You