Co je a bude NFC?
Jan Němec
UpTeq R&D
Gemalto

Co je a bude NFC?
• NFC architektura a ekosystém
• Payez Mobile pilot
• Očekávání a trendy
• Role a odpovědnosti
• Standardizace
Co je a bude NFC?
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NFC komunikace
Transport
Pass, Access,
Payement …..
SmartPoster
or TAG
Reading..
Working Mobile Off or
Reader Mode
Card emulation mode Battery Off
P2P data
exchange
Peer to Peer mode
Co je a bude NFC?
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Mobile NFC architektura
SIM
Application (java)
OTA
User credentials
Open Platform enabled
NFC chipset = CLF
RF layer, CLT mode (mifare)
Multi-protocol
(type A, B, felica, 15693.
Emulation / Reader)
Inside contactless, ST, NXP
Standardized (ETSI 102.622)
HCI - Host Controller Interface
Communication interface between
e-NFC chipset & SIM
Standardized (ETSI 102.613)
Recommended by
SWP - Single Wire Protocol
1.5 Mbit/s
Battery off mode
Open solution (free IP) RF antenna
Reference : date Gemalto 4
Co je a bude NFC?
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Multi-aplikační platforma
Oddělení aplikací je nutností nejen pro bankovní sektor
Transport
applications
MNO Events
Services Ticketing
Transport …
GSM Smart Transport Info
(U)SIM Poster Crypto
MNO Events
MNO Credit
Services Ticketing
applications Card
GSM E-purse
Smart
(U)SIM Poster
Loyalty
MNO Bank
applications applications
Reference : date Gemalto 5
Co je a bude NFC?
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Global platform - architektura
ISD
Applet SIM
toolkit
SD SD
RFM SIM RFM USIM
SIM NFC NFC
SIM USIM
Bank Transport
RAM File File Applet Applet
System System
SIM USIM SIM
USIM
API
ISD
Card Platform UICC
manager
Global Platform
Java Card
Hardware
RAM: Remote Applet Manager
RFM: Remote File Manager
Co je a bude NFC?
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NFC - hlavní účastníci
MNO
• Subsidies handset
• Provides communication channel
to service provider
• Provides generally Secure
Element
Bank
• Operates the financial application
and guarantees the transaction
security level
Transport
• Operates the transport
application
Payment scheme
• Issues security requirements and
validates financial transactions
Co je a bude NFC?
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NFC - přidružení partneři
Trusted Service Manager
• Key management
• Data / application management
Handset manufacturer
• May provide NFC connectivity
• Provides handset with its User
Interface (screen/keyboard)
Secure Element manufacturer
• SIM provider Personalization Bureau
• SD card manufacturer • Data preparation
Software providers
• Handset/SE application provider
• OTA solution provider
Terminal / reader provider
Co je a bude NFC?
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NFC - koncoví uživatelé
Merchant
Customer
Co je a bude NFC?
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Vývoj za poslední rok
Experience some delay but yet positive trend of
commercial SWP NFC enabled handsets with latest
standard to be available latest by Q1 2010
Significant works done in NFC standardizations to ensure
the large scale deployment – see standard dashboard
Market are getting organized to kick off NFC services
Bilateral agreements
Collaborative approach – e.g. France, Singapore
More requests coming from service providers like
banks, retailers – showing the positive momentum from
the success of various NFC pilots
Co je a bude NFC?
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Payez Mobile pilot
• 7 banks, 4 mobile operators, Visa Europe and
Mastercard Worldwide
• 1000 consumers in 2 cities: Caen and
Strasbourg
Payment > 20€ -> PIN mandatory
Payment < 20€ -> PIN optional
• Project live since November 2007
• First NFC project in the world with
Several payment applications from
different bank can be present at the same
time in one SIM card. The end user then
selects the card he wants to use.
Payment app are pre-loaded but perso,
post-issuance use cases done OTA
Co je a bude NFC?
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Výstupy z Payez Mobile
The objective is to build the basis of commercial NFC deployment
Testing consumer experience
Validating the target architecture (i.e UICC as secure element, payment
personalization OTA)
A great consumer feedback >90% satisfaction
Merchants have found the waiting time reduction as the most important
advantage.
Users showed a great interest in a new payment solution due to its
intuitiveness, processing speed and practicality.
Project continues to prepare the commercial roll out
Working groups on business model, certification and interoperability
Co je a bude NFC?
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Ohlasy uživatelů
Convenient, fast, and easy to use – Above 90%
overall satisfaction
Users showed a great interest in a new payment
solution due to its intuitiveness, processing speed
and practicality
• A new mean of payment for daily transactions
« It is very natural to pay with your handset »
« It could become a very common way to pay »
« I don’t imagine any reason not to use it »
• Immediately accepted
Most trial participants are willing to use the service once
becomes available
Most convinced that service is secured
• Some raise concerns;
What if I lose my phone?
Need more selection of handset
Should be able to use the service with many merchants
Co je a bude NFC?
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Ohlasy obchodníků
80% of retailers surveyed are aware
of Mobile Proximity Payments today
compared to 63% in 2007
A quicker, more efficient and
convenient way to serve
52% of retailers are “exploring the
customer
use of mobile payment solutions within
“In all cases it is very simple”
24 months”
“It is obviously faster than with a card“
Source: Aberdeen Group – mobile contactless:
A Merchant Perspective – Nov. 2008
Very easy to install and to use
Very easy to connect the contactless
reader to the existing PoS
Should be rapidly adopted
Ideal for smaller transaction
“Rather than fumbling for change”
Reduce payment processing time at
the point of sale
Co je a bude NFC?
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NFC spojuje dohromady ...
Mobile = global Payment = national Transport = local
• Different languages
• Different time scales
• Different security requirements
• Different business model
• Common customers
Success in pilots came from open mind and willingness to co-operate
between players
A facilitator helps to match the different requirements
Co je a bude NFC?
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Co uživatelé od NFC očekávají?
Love convenient & Intuitive
Want to use it everywhere
Want value added services Want more use cases
Co je a bude NFC?
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Co očekává trh?
• Bank driven by new revenues and CRM
Replace cash in low value transaction
Fast activation and distribution of new payment card
Brand image, One-to-one CRM channel
Increase mobile banking users, minimize traditional retail interface
• Transport driven by cost saving
Eliminate physical ticket distribution cost and operation of reload m/c
Improved Security/Less fraud
Cross Marketing opportunities / bundles e.g. timetable, map, advertising
• Merchant driven by customer retention
Speed, throughput, customer satisfaction
One-to-one marketing e.g. targeted advertising, loyalty program
Personalize customer relationship/ interactive
• MNO by new revenue and churn reduction
Improve customer loyalty through SP-customer link e.g. bank
Revenue from multiple SPs
Positioning: offer innovative and convenient solution for customer e.g. transport app
and auto-topup, corporate access
Brand image
Data mining (combining with LBS): opportunities to draw advertising revenue
Co je a bude NFC?
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Jak tato očekávání naplnit?
All stakeholders require profitable business cases to grow
Co je a bude NFC?
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NFC obchodní model
• There is no one universal business model
• Specific per country
Local configurations – MNO, SP, etc.
Different economic, technological, social and cultural factors
• Specific per application
Different revenue generation e.g. Per transaction, Per application download,
Per click, Per subscription
• Many markets are going commercial with bilateral agreement, first MNO,
first SP (bank or transport), often with exclusivity
• Some markets are going toward collaborative approach where multiple
MNOs, multiple SP agree on common requirements
• In Europe, no payment transaction fee for MNO
• Are your consumers willing to pay subscription fee for the NFC service?
Co je a bude NFC?
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Role a odpovědnosti
Service provider Mobile operator
Provision and personalize NFC
Provision and personalize NFC Ensure the secure Over-the-Air
Ensure the secure Over-the-Air
service on any mobile networks in
service on any mobile networks in access to Secure Element and
access to Secure Element and
real time with full security
real time with full security overall security of SE
overall security of SE
Securely manage end user data
Securely manage end user data Support end user eligibility check
Support end user eligibility check
and application use cases before granting the access to NFC
before granting the access to NFC
and application use cases
service
service
Visibility over subscribers &
Visibility over subscribers & Support device certification when
Support device certification when
services deployed in all MNO to
services deployed in all MNO to requires i.e. payment
requires i.e. payment
support customer care, billing, stat
support customer care, billing, stat
Complete view NFC service
Complete view NFC service
Support service recovery in case of
Support service recovery in case of deployed on subscriber base in
deployed on subscriber base in
lost or change handset
lost or change handset real time to support customer care,
real time to support customer care,
billing, stat
billing, stat
Support service portability in case
Support service portability in case
of changing mobile network
of changing mobile network Notify SP when end user
Notify SP when end user
subscription
subscription environment change e.g. new
environment change e.g. new
UICC, terminate subscription
UICC, terminate subscription
Co je a bude NFC?
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Co zbývá vyřešit?
Service provider Mobile operator
• New and open environment, process is • Seamless integration with SP i.e. easy
more complex, mobile is new form factor to connect new SP and fast TTM
• Facing different combination of end user • Transparent to applicative use cases,
environment i.e. MNO, SE, handset, ensure to support various service provider
wallet requirements
• Require uniform interface to multiple • Avoid generating unpaid and
MNOs unnecessary customer care call.
• Ensure end-to-end security, • Able to support NFC subscriber growth
confidentiality and integrity of service
application and associated data
• Minimize impact on SP legacy
Common challenges:
• Comply with existing standard and future evolution especially when NFC technology is
evolving
• Ability to grow value added services, CRM services
Co je a bude NFC?
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Možná úloha pro TSM
• Secure provision and manage SP application on mobile NFC
• We handle SP challenges by
Provide single interface and cope with multiple MNO
Avoid unnecessary and duplicate investment
Minimize impact on SP existing infrastructure and process
Reduce commercial risk of service adoption
Ensure interoperability with different end user/MNO environment
Manage security standards, certifications and technology evolutions
Co je a bude NFC?
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Přehled standardů
Available
Available
SWP TS 102 613 v 7.4.0 7.6.0 Available TSM implementation guidelines
HCI TS 102 622 v7.3.0 7.5.0 Available
NFC Connectivity API Ongoing Handset Requirement specification
UICC Platform Certification process / Protection profile Ongoing
Requirements
Available
Amendment A - CCCM: GP 2.2; UICC Configuration
Available
Amendment B - RAM over HTTP
Amendment C - Application selection,NFC Registry, TBC
Ongoing
Size Quotas SIM/OTA Interoperability guidelines
Ongoing
Embedded SE OTA Management Ongoing
TSM APIs specifications (to SP and MNOs) Ongoing
UICC platform Certification
NFC Handset digital certification label Ongoing
The NFC Forum's N-mark is a trademark to be promoted to consumers
where they can use their NFC device
Available
Mifare4Mobile Specification published in Dec 2008
Ongoing
VISA/MC Mobile Payment Specifications
Finalizing
Available AEPM V2.1 specifications
CNA Specifications Available
ULYSSE specifications Ongoing
DOFOCO from GART
MNOs/Service Providers Available
Interface Specification; cardlets;
midlet dev guidelines
Co je a bude NFC?
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Reference : date Gemalto 24
Co je a bude NFC?
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Reference : date Gemalto 25
Co je a bude NFC?
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