nfc: shaping the future of the connected customer experience

Koichi Tagawa, Chairman, NFC Forum, SonyEnhancing CX with Digital Commerce - RETAILTECH JAPAN March 8, 2017, Tokyo

NFC: Shaping the Future of the Connected Customer Experience

WHAT IS NFC?

Advancing Near Field Communication Technology2


Contactless, Connected and Customer Initiated

Access

Connected

Car Connected Home

Smart Manu-facturin

g

SmartMobilit

y

Payment

Marketing

AN NFC-ENABLED WORLDWIDE-RANGING USER EXPERIENCES - NFC EVERYWHERE

NFC AS A UNIQUE RF INTERFACE


NFC Forum Specifications • Provide tap-based transactions that are:

• Intended• Intuitive• Globally interoperable• Enabling two-way data communication • Delivering power simultaneously

What is NFC? Click here for video: https://youtu.be/8q9iISSRx7k

https://youtu.be/8q9iISSRx7k

https://youtu.be/8q9iISSRx7k

NFC AS DEFINED BY THE NFC FORUMModes and Compatibility


NFC Operates in Three Modes NFC is Compatible with Global Communications Standards

Global Interoperability

Form Factor Free

Card(ID-1)

NFC-AISO/IEC

1443/18092

NFC-BISO/IEC 1443

NFC-FISO/IEC 18092

NFC Tag(Type 1-5)

DeviceMobile, Terminals

NFC-VISO/IEC 15693

NFC FORUM



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

THE NFC FORUM REPRESENTS


All of the world’s major:● Chip vendors ● Payment service providers ● Smart phone manufacturers● Mobile operating system providers● 150 member companies

Collaborations with industry consortia:

NFC FORUM: DRIVING NFC FORWARD ON ALL FRONTS

9

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

Advancing Near Field Communication Technology

SPONSOR MEMBERS


PRINCIPAL MEMBERS

10


ASSOCIATE MEMBERS


IMPLEMENTER MEMBERS

NON-PROFIT MEMBERS

LATEST MARKET DEVELOPMENTS


GLOBAL NFC MARKET GROWTH


Source 1: IHSSource 2: Markets and Markets Source 3: Strategy AnalyticsSource 4: Juniper

2.2 billion NFC-enabled handset shipments by 20201

• NFC adopted across all handset OEMs, covering all OSs

• 72% by 20203, up from 52% in 20163 and 18%1

in 2013• Apple Pay, Samsung Pay, Android Pay, etc.

• Global NFC market to exceed reach 21.84 Billion by 20202

Contactless POS payments to hit $500B in 20174

• Contactless POS terminals to increase by 2021• Standard in Europe by January 2020• Upgraded in Sweden, Estonia, Latvia in 2017 Source: IHS

Robert Olson

Thereof?

JAPANESE E-MONEY GROWTH


Source: Payment and Settlement Statistics by Bank of Japan (Central Bank)

Jan-08Ap

r-08Jul

-08Oct-

08Jan

-09Ap

r-09Jul

-09Oct-

09Jan

-10Ap

r-10Jul

-10Oct-

10Jan

-11Ap

r-11Jul

-11Oct-

11Jan

-12Ap

r-12Jul

-12Oct-

12Jan

-13Ap

r-13Jul

-13Oct-

13Jan

-14Ap

r-14Jul

-14Oct-

14Jan

-15Ap

r-15Jul

-15Oct-

15Jan

-16Ap

r-16Jul

-16Oct-

160

50

100

150

200

250

300

350

400

450

500

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000Transaction(million)

Value(100M yen)


Technology trends creating opportunity for NXPMOBILE NFC PAYMENT BRANDS ARE EXPANDING GLOBALLYAND IN JAPAN

• Cloud-based, Supports Open Development

• NFC• HCE-based payment projects

worldwide

• Growing contactless infrastructure investment• In Japan, broader collaboration with FeliCa eco-system

Deployment of Mobile Payment Accelerating Worldwide

Apple Pay

• SE-based• NFC • Worldwide deployment

Android PaySamsung Pay

• Both-SE and TEE-based• NFC + MST• Growing deployment

NFC ECO-SYSTEM IN JAPAN

17

NFC-FNFC-A/B

Seamless usage of EMVCo payment and FeliCa services

EMVCo platform FeliCa platform


NFC-ENABLED MOMENTUM


● Apple Pay, Samsung Pay, Android Pay embedded in wearables

● Fit Pay, PayPass and PayWave are NFC-enabled● PayPal NFC-enabled payments now in Spain and

expected across Europe● Fit Pay and Mastercard bringing contactless

payments to wearables and IoT manufacturers ● Visa enabling manufacturers and developers to

use its Token Service payment platform on any IoT device

More than 2.5 million devices are expected to be enabled for payments in 2017, with the number rising to more than 9 million in 2018. Source NFC World Source: Digital Trends

Source: Huffington PostSource: Mashable

http://www.nfcworld.com/2016/10/25/348014/partnership-deal-contactless-payment-wearables/

Ruth Cassidy

Are these NFC payments or mobile payments in general

NFC-ENABLED TRANSPORT

19.

JR East NFC-enabled Mobile Suica

● Japan’s transport company, JR East, expanded its NFC- and Android-based mobile payment system, Suica, to include Apple Pay

● 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● The NFC Forum’s harmonization efforts have greatly advanced

public transport interoperability as detailed in this white paper: NFC-enabled

e-Ticketing in Public Transport: Clearing the Route to Interoperability

Japan’s National Tourism Board aims to double the number of foreign visitors to 40 million by the 2020 Summer Olympics. JR East uses NFC technology to make public transport more open, versatile, and interoperable for all its riders. Source NFC ForumAdvancing Near Field Communication Technology19

http://nfc-forum.org/transport-stakeholders/



http://nfc-forum.org/resources/jr-east-passengers-travel-freely-with-mobile-suica-and-nfc/

NFC-ENABLED AUTOMOTIVE

20.

Mercedes-Benz and Samsung created NFC smartphone car keyTap-and-access user convenience● NFC-enabled Samsung smartphone with secure SIM card● Mercedes-Benz companion application● NFC chipEmbedded solution● Tamper-proof embedded Secure Element ● NFC technology designed for sensitive uses, such as payment systems,

transport, ticketing, corporate access, and cloud computing authentication● NFC chip will be installed into the door handles of compatible models1

Mercedes-Benz & Samsung NFC Car Key

Source 1: Android Headlines, “Mercedes-Benz And Samsung Unveil Smartphone Car Key, Sept. 3, 2016


http://www.androidheadlines.com/2016/09/mercedes-benz-samsung-unveil-smartphone-car-key.html

NFC: CONNECTING THE UNCONNECTED


●User-initiated NFC-enabled connections, commissions and control of Internet of Things

●NFC embeds intelligence in unpowered, unconnected objects

●Access to data from unpowered, unconnected objects

●NFC technology is designed for sensitive uses, such as IoT applications in payment systems, transport, ticketing, corporate access, and cloud computing authentication Source: Forrester


NFC: USER-INITIATED TRANSACTIONSUSER INTIATED CONNECTIONS:

Common InfrastructuresCard Emulation – Payment for:● Multimedia streaming● System upgrades● Tolls, tickets, vending ● Goods, services, gas

Physical World To Online WorldEnhanced User Experience● BT/WiFi pair: NFC Connection Handover● Tags: information, access● Personalize settings● Wireless power charging● Service notifications

Through Physical ProximitySmart Authorization (Peer to Peer)● Access to transport, buildings● Rental or sharing● Fleet management● VIP retail experiences

Internet of Things

NFC MARKET DEVELOPMENTS: EXPANDING THE RETAIL OPPORTUNITY


NFC RETAIL ANYWHERECONTACTLESS, CONNECTED, USER-INITIATED

24

NFC Tags

Device-to-Device

Payment


NFC RETAIL ANYWHERE – IN STORESCONTACTLESS, CONNECTED, USER-INITIATED

25 Advancing Near Field Communication Technology

Supermarket NFC-enabled shopping service enables customers to add products to a digital shopping basket and receive personalized discount vouchers with a tap of their NFC phone.

Source NFC World

NFC provides smart access for store workers or enables retailers to provide VIP access to special retail experiences.

Source GIT Security

Diverse array of industries are looking at NFC and NFC Tags as a way to fight the booming fake-goods market, which accounts for 2.5 percent, or $461 billion, of world trade.

Source OZY

https://www.nfcworld.com/2015/03/12/334579/nfc-shopping-service-goes-live-in-paris-supermarket/

http://www.git-security.com/topstories/security/access-control-ready-nfc-smartphone-future

http://www.ozy.com/fast-forward/your-phone-a-weapon-against-counterfeit-merch/75129

NFC RETAIL ANYWHERE – IN PRODUCTSCONTACTLESS, CONNECTED, USER-INITIATED


Kuvée NFC-enabled, connected wine dispensing system allows users to view tasting notes, rate wines and make purchases which are shipped right to your door.

Source: NFC Forum Innovation Awards Semi-Finalist

Tostitos used NFC to allow fans to tap the bag with their phone to call a ride, offering partygoers $10 off their Uber ride during and after the Feb. 5th Super bowl game.

Source NFC World

Avery Dennison's DirectLink NFC-enabled labels allow access to more product information with just a swipe of a smartphone

Source Smart Packaging

https://nfcforum.secure-platform.com/a/page/home/Judges

https://nfcforum.secure-platform.com/a/page/home/Judges

https://www.nfcworld.com/2017/02/01/349785/tostitos-tortilla-chip-bags-use-nfc-order-uber-consumers-drunk-drive/

http://www.flexpackmag.com/articles/87805-smart-labels-the-next-big-thing-in-packaging

NFC FORUM MEMBER MEETING – LAS VEGAS


Robert Olson

Green Valley Ranch,

For more information on how to get involved: http://nfc-forum.org/


Become a Leader in the Rapidly Growing NFC Industry

Join the NFC Forum!

http://nfc-forum.org/



THANK YOU!

Questions?
