Near Field Communication - Update 2012 - On markets and devices


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This presentation was held at the MobileTech Conference 2012 in Munich.

I had help from my colleague Simon Kegler ( to put this all together.

It shows that the market is changing, but we are still at the prototype and project phase. There is few real business cases around NFC in markets yet (other

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  • Internet Companies:GooglePayment Networks:Isis, Mastercard, Visa,AmEx, all majorbanks (Citigroup, Bank ofAmerica, JP Morgan Chase are all pushingfor NFC solutions)Mobile Operators:USA:AT&T, T-Mobile, Verizon Wireless (alle Isis), Sprint (ggfs. mit Google)Europa:Orange, Vodafone und Telefonica größte Treiber (v.a. in Frankreich und Spanien)
  • Payment und mCommerce definitiv die großen Treiber für NFCUSA:Isis mitlerweile größer als Google Wallet obwohl noch nicht gelaunchedKooperation mit AT&T, T-Mobile, VerizonGoogle Wallet in USA evtl mit Sprint  nicht die erhoffteReichweiteVisa PayWaveMastercardpaypassTarget/Wallmart: wolleneigene Wallet implementierenfür NFC payment StarkesZeichen an Google!Hauptgründe:Google zugroß und stark mit payment-AnbindungSicherheitsbedenkenEUROPALänderspezifische JV’s von OperatorsEngland: Everything Everywhere, O2, Vodafone UKDeutschland: Telekom Deutschland, O2, Vodafone  mpassals deutsche NFC-payment LösungfürMitte 2012 geplantNiederlande: Banken und Operators JV planenfürMitte/Ende 2012 mobile payment mit NFCING, Rabobank, ABN AmroT-Mobile, KPN, VodafoneFrankreich: Orange, think&go (leading provider für NFC Shopping) und Morpho (smartcard solution provider)Großes NFC Projekt in Nizza (payment, ticketing, information in Museum)ASIENTechnologie starker driverProvider statten devices mit NFC Sims aus (KT 3Mio. in SüdKorea, LG+U weitere 2 Mio.)Sony FeliCa:GrößteskontaktlosesPoS- und Transit-system weltweit!
  • No more cash/changeNomorestanding in linewaitingtopayforfareNo moremissingridesbecauseoflinesatmachineLondonsystemextremelyefficientRewardusersforusingnewtechnology fares with London oyster card 40% cheaper than regular fares  very smart way to incorporate loyalty program and find out about your customers
  • Zu viele loyaltycards in der GeldtascheOverload für KonsumentenSmartesysteme dank NFC-Technik verbinden alle Loyalty Möglichkeiten (Punktesysteme, Rabatte, Zahlungsmöglichkeiten)
  • Bsp: End-to-End Tracking:Warner Brothers und X-Men Movies (1. grpße NFC-ampagne in UK in 2009)User tappedposteretc mit NFC phoneUnique IdentifizierungZahlungim Kino mitgleichem DeviceProxama sitzt in England und arbeitet hautpsächlich mit Banken und Retailern zusammen
  • Online-Umfrage derFederealReserves Bank (zu lesen bei NFC Times) im März 2012Embedded Secure Element im Chip:Weltweite Gültigkeit!Sicherheit beim Bezahlvorgang (eindeutige Zuordnung, kompatibel mit Zahlungsabwicklung)Schnelle Übertragung N-Mark vom NFC-Forum:Schaffung von Normen und globalen Standards beimEinsatz von NFC
  • NFC-Stationen:Die Gegenstücke zu den Telefonen sind (vor allem in Deutschland) limitierender Faktor bei der VerbreitungUK, Frankreich und Spanien in Europa führend aber noch nicht weit genug verbreitet um von Massenfähiger Lösung zu sprechenDeutschland: JV zwischen großen Mobilfunkanbietern steht, Verbreitung sehr geringSehr zuückhaltender Markt wie immer
  • Samsung Card –Samsung Electronics hält Mehrheit an Kreditkartenfirma in Asien und könnte komplett eigene Abwicklung pushenGoogle hatte auf Google-Wallet Implementierung in weiteren Android-Geräten gehofftRemotepayment und weitere mobile commerce Apps denkbar
  • OCAN (L‘Office du Commerce et de l‘Artisanat de Nice):Gesellschaft für unabhängige Händler in NizzaLoyaltyProgram in Zusammenarbeit mit Cantactless Spezialist ADELYAMarkt in Frankreichsehraktiv und miteinigenplayern in demBereichausgestattet
  • Google vs IsisOperators vsOperatosPaymentproviders vs...
  • Near Field Communication - Update 2012 - On markets and devices

    1. 1. NFC – Quo Vadis? Dr. Florian Resatsch CEO, servtag GmbH. Berlin
    2. 2. Android® Beam™ @ MWC 2012
    3. 3. Near Field Communication (NFC): TechnologyNFC: It is Radio Frequency Identification (RFID) in consumerdevices. It has been introduced in 2002.… and it comes in many shapes….
    4. 4. ... and why most of you have no NFC phone vs.
    5. 5. The future of mobile NFC – use cases Ticketing and ??? Payment Pilots Card-based NFC Mobile Phone based NFC
    6. 6. The future of mobile NFC – use cases Ticketing and 1. Enabling Payment applications 2. B2B ? Pilots applications 3. Social Networking
    7. 7. 2. Current Players in the NFC Ecosystem
    8. 8. Current Players in the NFC-Ecosystem• Internet Companies• Payment Networks• Mobile Operators• Handset Manufacturers• Software Developers• Technical Developers (chips)• What is missing? – STARTUPS!!!!!!
    9. 9. 3. Market Situation 3.1 Handset Devices
    10. 10. NFC Handset Manufacturers• Over 40 devices total• 20 different manufacturers• Samsung leading the way (8 current devices)• Other big players – Nokia – HTC – Motorola – LG Samsung Galaxy Nexus – Huawei Source: – BlackBerry devices/google-galaxy-nexus/ BlackBerry Curve 9350 Source: devices/blackberry-curve-
    11. 11. NFC Handset Manufacturers – Coming• At least 30 more devices in 2012 – Samsung once again leading the pack (own payment solution on the way) – Nokia/ Windows Phone 7s to be NFC-compatible – Samsung rolling out on all Bada-devices – ZTE (4th largest manufacturer ww) for all Android devices + Tablet devices (at least 10 in 2012)Where does that leave us? 40 Mil. NFC-enabled devices shipped in 2011 120 Mil. in 2012… NFC becoming standard feature on smartphones Winows Phone 7 on Lumia Series Source:
    12. 12. And what about...the big apple?• YES or NO? – No sign of NFC chip in any of Apple‘s mobile devices (iPhone, iPad, iPod) – Unlike other players, no cooperation with payment providers or mobile operators for NFC... Source: content/uploads/apple_logo.jpg
    13. 13. 3. Market Situation 3.2 Scope
    14. 14. Mobile Payment – the key driver• USA – Internet Companies – Payment Networks (Wallet Technology) – Retailers• Europe – Mobile Operators – Large JV‘s to face Google and other large players• Asia – Market well established – Technology hub – Mobile Operators
    15. 15. Ticketing and Entry Systems – more convenience• Established, but yet not widely spread• March 2012 survey ( 50% of US- commuters ready to use NFC phone for transit payments Source:Tests around the Globe /2011/01/27/article- – HID Global /Arizona State 1350709- 0CEC88CE000005DC- 491_634x408.jpg University (2011): physical access control for 13.000 university students Source:
    16. 16. Loyalty and Couponing – creating measurablevalue• Replacing loyalty cards with applications on NFC phone• Securely collect and redeem loyalty points touch- and seemlessly• Electronic coupon redemption – Easy to use, intuitive – 100% measurable for increased performance analysis – Use of NFC-sticker on phone can replace need for NFC device – Strong focus on large retailers Source: m/technology/zapa-tag.html
    17. 17. Marketing and Advertising – innovativeperformance• Proximity marketing and hyper-local promotional campaigns• Rich-media interaction with consumers• In-depth analytics and campaign- management• Allows for end-to-end tracking in combination with NFC-payment  100% performance marketing Source: http://2d- marketing-campaign/
    18. 18. Others• Sharing: – Business card, MM-formats, documents, calendars • BlackBerry Tag • Android Beam Source: - content/uploads/2011/10/CNW• Fun: Tag-A-Bag INTECH_Google_Luncurkan_An droid_4_Ice_Cream_Sandwich_ Android_Beam.jpg – User interaction with objects of personal life and creation of virtual paths Source: http://assets.vr- – Innovative marketing approach with strong opportunities for relevant advertisement
    19. 19. Other: Mobile health Satisfying special needs
    20. 20. Other: B2B applications – Security
    21. 21. HYPER LOCALIZATION Utility and Design Patent servtag™
    22. 22. Exemplary pictures of bars in Berlin with stickers
    23. 23. 3. Market Situation 3.3 Limiting Factors
    24. 24. Security Concerns• Fed consumer survey (2012): 25% interested in using mobile wallet system, 12% feel safe doing so – Mobile operators leading role in Europe as drivers of technology – Secure Element in NFC Chip/SimCard• Standardisation and norms (What happens if.... I put my phone to a malware tag with NFC logo?) Source: 11/03/nfc_n-mark.gif
    25. 25. Stationary NFC-ports in Europe• Up to 120 Mil. NFC-phones worldwide by end of 2012, but where will they be used? – UK: 60.000 payment ports installed – France: Nice, Caen, Strasbourg to roll out contact points -> still trials – Spain: Telefonica to announce NFC plans – No mass-rollout in Germany due to reluctance on retailer and customer side to trust technology Source: content/uploads/2011/03/nfc-handys
    26. 26. Costs• NFC-enabled SIM-card: 3-4x cost of regular cards• Extreme investments for installment of readers and ports Source: content/uploads/2010/05/93365914-
    27. 27. 4. NFC CasesWhat‘s been done, what‘s to come
    28. 28. Samsung to build wallet platform• “Samsung Wallet” to pose major challenge for mobile operators and existing payment providers• Massive challenge for Google• Embedded secure chip for all NFC phones• Coops with Visa payWave and MasterCard PayPass possible Source: plans-offer-nfc-mobile-payment-service
    29. 29. Carte Magique and OCAN in Nice• Loyalty program – increase traffic to local retailers – Promote businesses to shoppers• 200 retailers equipped with NFC readers• Interaction through loyalty platform „Loyalty Operator“• Access with NFC card or mobile phone and „Loyalty Avenue“ app Source: ues_dynamisation/302_cartes_fidelite_collectives/NI CE_CARTE_FIDELITE.png
    30. 30. San Francisco TransportationAgency/PaybyPhone• One of the largest NFC projects globally• 30.800 NFC-enabled parking spaces for easy identification of location, input of parking times, and payment transaction• To be rolled out throughout US and CAN in 2012 Source:
    31. 31. Museum of London/Nokia• 90 NFC Tags next to artwork• Guided tours for visitors• Weblinks to artwork, purchase of tickets for new exhibitions, social network integration, share with friends Source: ide_museum_london.jpg
    32. 32. think&go wins Best NFC Application Gold Awardat WIMA NFC (2011)• Shopping application for visually disabled (285Mil. worldwide)• Application builds personal profile(likes&dislikes, allergies, budget)• supports helpful features such as Text- to-speech, Tap-to-basket, Mobile Payment) Source: http://www.thinkandgo- unveils-nfc-retail-solution-as-the-last-meter- influencer-at-wima-2011.html
    33. 33. 5. Outlook
    34. 34. This year, expect......the big players to battle it out in the USA for market position...Google to face difficulties attracting partners...Isis to delay nationwide launch...Target, Wal-Mart, and co. to gain significance...many handset manufacturers to ship with pre-installed wallets… Apple to set a sign!
    35. 35. Also look for...…mobile operators in Europe to seek ownership of NFC pertinent mass-consumption of NFC applications...UK and France to become NFC-leaders in Europe...Germany to be very slow to adapt…it all to lead up to a massive NFC-explosion in 2013?
    36. 36. Dr. Florian Resatsch servtag