nfc mobile payments · pdf file · 2014-11-07• mobile payments ... • nfc...
TRANSCRIPT
NFC Mobile Payments Trial
May 7, 2009
• Mobile Payments – Ability to use your mobile phone to purchase goods and
services, primarily done via contactless transactions at enabledPoint-of-Sale (POS) terminals
• Partners – Bell Mobility, Citi Cards Canada, MasterCard Canada
• Mobile Payments Trial– We tested the usability and functionality of the mobile payment
application in the mobile phone• Usability: Is it easy to use?• Functionality: How well does it work?
Introduction
The Mobile Payment Concept
Provision payment application into the secure element of
NFC-enabled mobile device
“Tap & Go” at any contactless
POS terminal
Signature for purchases >$X.00
Goods purchased!
• Place credit/debit/prepaid payment application in the secure element of the mobile device that is Near Field Communications (NFC)-enabled.
• We’ve effectively put your credit/debit/prepaid cards in your phone for simple and easy payment.
Near Field Communications (NFC)
What is NFC?• A simple technology that transfers small amounts of data via Radio Frequency
Identification (RFID) transponders - similar to technology being used in Canada today by Esso Speedpass, Shell EasyPay, MasterCard PayPass, etc.
• NFC-enabled wireless devices should be widely available in Canada by the end of 2010
NFC is different from other RFID schemes because. . . • NFC follows industry-wide standards to allow universal access vs. proprietary RFID payment
schemes that are accessible only at specific stores or gas stations
• NFC protocol is based on ISO 14443, and supported by Visa, MasterCard, and Amex contactless standards. NFC-enabled wireless devices can act like a plastic contactless payment card
• Can use existing contactless Point-of-Sale (POS) terminals that accept MasterCard PayPass, Visa PayWave, or Amex Express Pay
• NFC allows two-way communication. NFC-enabled devices can not only transmit but also receive information from another NFC tag or device
Multiple Uses of NFC
Source: NFC Forum
NFC Architecture
Secure Element
(U)SIM
GSM
Embedded Chip
CDMA
Secure Element Issuers (Trusted Third Party) Secure Element
(U)SIM
GSM
Embedded Chip
CDMA
Secure Element Issuers (Trusted Third Party)
Our Mobile Payment Phone
Samsung A920 mobile phone
Participating MerchantsRetailers that were PayPass enabled during the trial:
– Petro-Canada – Pioneer gas stations – Loblaws– Zehrs– Real Canadian Superstore – No-Frills – Tim Hortons– Cineplex Odeon theatres – Rabba Fine Foods – Valu-Mart – Fortinos– Independent Grocers – Coke vending machines located at Bell offices
Early Trial Learnings1. Store employees were not expecting
customers to pay “by telephone”.2. Card download process is easy enough for
customers to complete on their own.3. Trial participants liked the convenience of a
combined communication/payment device.4. The supply and personalization of handsets
requires precise coordination of all parties involved in the value chain.
5. Customers need to be educated/reassured about the security of contactless payments and NFC handsets.
Trial Usage SummaryAvg Trxn Amount – All PayPass Cards : Trial Cards Only 1 : 0.63
Avg Swiped Trxn Amount – All PayPass Cards: 1 (68% of all trxns)Avg Swiped Trxn Amount – Trial Cards Only: 0.74 (47% of all trxns)
Avg Tapped Trxn Amount – All PayPass Cards: 1 (16% of trxns)Avg Tapped Trxn Amount – Trial Cards + Handsets: 0.39 (30% of all trxns)
Avg CNP Trxn Amount – All PayPass Cards: 1 (16% of all trxns)Avg CNP Trxn Amount – Trial Cards Only: 0.64 (23% of all trxns)0.639
Avg #Trxns/Account – All PayPass Cards: 1Avg #Trxns/Account – Trial Cards Only: 2.87
On average, trial participants spent less on every kind of transaction……but they used their cards 3 times as often.
Average total spend ratio - All PayPass cards : Trial Cards Only = 1 : 1.78
Give your cardholders the option to pay for items with their mobile handsets and they will spend significantly more on your card.
Other Factors1. The NFC trial handsets were not the personal/primary mobile
handsets of the trial participants; if their primary mobile device had been NFC-enabled, would the participants have been more likely to carry the NFC device and use it for payments? Most participants had to carry 2 mobile devices during the trial.
2. The trial handsets were also loaded with $100 of value on a second, prepaid MasterCard account; would the participants have used their Citi MasterCard accounts more often if the “free”credit card was not available to them?
3. The trial handsets were prototypes that did not hold their battery charge as long as most mobile devices; would the participants have used their handsets more often if the devices were less likely to have dead batteries?
The NFC trial results may have been even more positive had these barriers to usage not existed.
Smart Posters• Trial participants were given the opportunity
to try two types of smart poster:– Weather: Tapping the NFC handset on these
posters gave the user updates on their local weather.
– Traffic: Tapping the NFC handset on these posters gave users the latest traffic conditions for highways in the area.
• Smart poster applications were very basic and needed improvements to the user interface before they would viable alternatives to existing weather and traffic update services available via television, radio or Internet.
Is NFC Here To Stay?All signs point to “yes”:• Contactless public transit fare systems: Canada (Montreal & 407ETR),
France, Portugal, Belgium, Colombia, South Korea, Turkey, Russia, U.S.A, Japan, Italy, India, Israel, Mexico, Malaysia, Singapore, Taiwan, Norway, U.K., Australia…
• Passports: Malaysia (early 2000), New Zealand (2005), Belgium, The Netherlands (2005), Norway (2005), Ireland and Japan (2006), Pakistan, Germany, Portugal, Poland (2006), U.K., Australia and the United States (2007).
• French Alps: Hands-free access to ski lifts• Barcelona: “Bicing” bike sharing system• London: School campus access and monitoring• San Francisco: Exploratorium Museum gives RFID tag holders exhibit info• Worldwide:
– Library book tracking– Racing lap scoring– Animal identification– Inventory management
• Human implants (!)– Barcelona and Rotterdam Nightclubs: Identify VIP guests and drink vouchers– Mexico: Some Attorney General staff implanted for secure data room access
