Explore the evolution of payments and trends happening today in the payment industry.

1. COVER PAGE SUBTITLE
PLACEHOLDER
COMPANY CONFIDENTIAL
Beyond cards, phones and terminals:
New payment form factors
Olivier Aretz, Senior Director,
Head of NFC Infrastructure & Consumer Marketing

2. March 29, 20162
The evolution of payments
Source: the RWC Group
100,000
Years 3,000 B.C. 650 B.C. 960 A.D. Dark Ages 1950‘s Past 20 Years
Now  Future
Pay anywhere,
anytime
using mobile
magic

3. Trends happening today in the Payment Industry
March 29, 20163.
› Anywhere and anytime
› E-commerce
› Simplicity and speed
› Loyalty and multi-
application
› (online) Fraud!
› From payment pipe to full
services (SaaS)
› Shift to electronic (… but
cash still king for small
transactions)
› EMV migration
Source: Money 2020,
BMO Capital, web
› Mobile devices
› Encryption technologies,
Tokens, HCE,
signatures,...
› NFC, BTLE, Biometrics,…

4. March 29, 20164
Form factors have followed the customer needs
and available technology
Source: the RWC Group
* More than 80 % of all NFC-enabled POS terminals use NXP technology
phones
ACCEPTANCE
DEVICE
wearablecardschecksnotescoins
purse registrar POS* PC
mPOS, PC/Tablet,
Embedded
INSTRUMENT

5. Mobile POS (mPOS)
Simplifying the access to the EMVco and the contactless world
March 29, 2016 COMPANY PUBLIC5.
Tablet serves as:
• user interface between the
customer and the merchant,
• modem to connect to
payment server.
Send the amount to pay
over via encrypted
Bluetooth to the mPOS
device. Amount appears
on the display.
Put the bank card on the
antenna of the mPOS
and complete the
transaction within
seconds.
The receipt will be
displayed and can be
send to the customer’s
phone via email or
SMS.
› Secure accessory to a phone or tablet
› Cost-efficient, portable and fast to install
› Small merchants, taxis, POS-multiplication
› 50M installed devices by 2018
Exemplary use case
5
7
9
11
13
15
17
2014 2015 2016 2017 2018 2019
Growth in sales for mPOS devices (in Million)

6. March 29, 20166.
In-app payment
› Credentials stored in secure
area (e.g. eSE)
› “Card almost present”
Computers and tablet
Driving e-commerce and –ebanking
Source: company websites
Tap-to-pay
› Secure reader module inside the laptop
› Convenience and new recharge
services
› E-banking
 Key challenge: scalability
Pay now
Total: $ 8,99
Pay with ***3342

7. March 29, 20167.
› Pay without getting
anything out of your pocket
› Smartcard or embedded
secure element
› Multi-applications possible
(transit, access,…)
› 250M wearables expected
in 2018
› Challenge: scalability
Wearables
Ultimate portability
Source: IHS, company websites
Smartcard
Closed-loop
Smartwatch
…and much more
Dedicated band

8. March 29, 20168.
› Separate secure module to
be integrated in larger
system
› Cost efficient and pre-
packaged solution
› Large range of application
areas, from IoT home to
car
› Challenge: certification
Embedded modules
Adding payment functionality to
almost every device
Source: ABI Research, Sep’14
CE NFC-enabled devices
Embedded Modules for:
- OTT, t-commerce, content/ gaming delivery
- Pre-paid metering
- Vending machines
- Cars: upgrades, trolling, e-commerce

9. March 29, 20169.
› Use NFC phone as payment
card reader
› Ultimate integration of mPOS
› For merchants and private
transactions
› Challenge to overcome:
device security
Smartphone integration: the holy grail?

10. NXP: your partner for any payment solution
For more information, visit www.nxp.com
March 29, 201610.
mPOS reference demo
› EMVco L1 & L2* pre-
certified
› Contact, Contactless, BLE
› Available HW schematics,
antenna design, Android
app, PCI report
Secure Services
Development Platform
(SSDP)
› Android Loader Service
for easy mobile
onboarding
› Payment, transit,
access…
Portfolio of chips and
development boards
› NFC front-ends CLRC663,
PN518
› Contact reader TDA family
Wearable platform
POS ref design and SDK
› Contact+contactless reader
› EMVco 4.3 CT and 2.3.1RF
› Full software package
› Extensions for MIFARE
› Source code, Gerber
available
* Via 3rd party
Track record in
security applications
#1 in various areas reaching
from NFC in mobile to bank
cards and electronic identity
documents