NFC Mobile Payments 2016 What’s Next?

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Presentation by Terunao Tsuchiya, NFC Forum Board representative for Dai Nippon Printing, from March 11, 2016 at Asia Pacific Smart Card Association

Presentation includes the NFC Forum mission and strategic focus for 2016, a review of the latest market developments, use-cases of NFC Payment, Transportation and IoT In Action, and a overview of the Role of the NFC Forum.

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NFC Mobile Payments 2016 What’s Next?

  1. 1. Terunao Tsuchiya, NFC Forum Board of Directors, Dai Nippon Printing Asia Pacific Smart Card Association March 11, 2016, Tokyo NFC Mobile Payments 2016 What’s Next?
  2. 2. Advancing Near Field Communication Technology2 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
  3. 3. STRATEGIC FOCUS FOR 2016 3 Transportation Internet of Things Payment Pervasive use of contactless payment via mobile devices NFC technology an accepted element and the tool of choice for non connected devices Growing access and increased usage rates of NFC technology in PTOs worldwide
  4. 4. LATEST MARKET DEVELOPMENTS Advancing Near Field Communication Technology4
  5. 5. NFC MARKET GROWTH (CAGR) 5 43.7% 50.6% 2014 - 2019 Source: Technavio 2013 - 2019 Source: Transparency Market Research Advancing Near Field Communication Technology
  6. 6. GLOBAL MOBILE PAYMENT GROWTH Advancing Near Field Communication Technology6 0 2000 4000 6000 8000 10000 12000 2015 2016 2017 2018 2019 Revenue (US $100M) Revenue (US $100M) Source: TrendForce, Feb. 2016
  7. 7. NFC PAYMENT, TRANSPORTATION AND IOT IN ACTION Advancing Near Field Communication Technology7
  8. 8. MOBILE NFC PAYMENT IS EXPANDING GLOBALLY Advancing Near Field Communication Technology8 • Supports open development • Carriers on board • HCE-based payment projects all over the world • Accelerating contactless infrastructure investment Full scale deployment of Mobile Payment in US Apple Pay • Thousands of banks • Millions of locations • US, China, Canada, UK, Australia Android PaySamsung Pay • Launched in S. Korea, US • 5M Users in S. Korea, US • NFC + MST
  9. 9. NFC IN PAYMENT GROWTH 9 ● Two of the four largest Australian banks rolled out mobile pay for all customers ● Barclaycard completed deployment of HCE to mobile app and sees 164% increase in contactless transactions ● Largest multi-bank payment solution with 200 Scandinavian banks announced Within the past month: Source: NFCWorld+ Mobile payment methods will see a five- year compound annual growth rate of more than 43% to $4 trillion in 2020. Source: IDC
  10. 10. NFC IN PUBLIC TRANSPORT GROWTH 10 ● 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 Within the past month: Source: NFCWorld+ An estimated 1.5 billion boarding passes will be issued via smartphone by 2019 Source: Juniper Research
  11. 11. THE INTERNET OF THINGS ... Advancing Near Field Communication Technology11 ... AND THE CONNECTED CONSUMER
  12. 12. NFC IN INTERNET OF THINGS GROWTH 12 ● Energy harvesting for the connected home ● Luxury goods and collectable authentication ● Tracking and monitoring sensor data IoT solutions in use right now: According to IDC, IoT spending will top $1.4 billion by 2019 Source: IDC
  13. 13. PARADIGM SHIFT: WHAT NFC BRINGS 13 Advancing Near Field Communication Technology
  14. 14. FROM COMPANY DRIVEN TO INDUSTRY DRIVEN 14 1 model, Global Market Market Structure Shift Regional base to Global base NFC Popularity in B2C product Industry Structure Shift Vertical to Horizontal Integration Standard Feature on Mobile OS App Development Process Shift MNO centric to Mobile OS centric Product Enhancement Card/RW to Mobile/Embedded device Next Stage Security: Chip base to total optimization New feature: Wireless Charging Economies of Scale Industry Driven Advancing Near Field Communication Technology
  15. 15. 2 BILLION CLASS PLATFORM 15 ● Impact on B2C market  Billions of deployed NFC devices now available to support your service offering  New use cases can be introduced on Day 1 over the platform ● Impact on B2B market  Enables easy development of contactless applications without dedicated equipment  Commoditization of acceptance terminal  Market figure of FY2014: POS terminal 30M unit vs. NFC device 500M unit Advancing Near Field Communication Technology
  16. 16. THE ABILITY TO CONNECT THE UNCONNECTED Advancing Near Field Communication Technology16 ● It‘s The Internet of Things, not The Internet of Electronic Things ● Need a way to embed intelligence in unpowered, unconnected objects and things ● Need a way to gather data from unpowered, unconnected objects and things
  17. 17. Small Form Factor • Advantage of 13.56MHz, small antenna • Possible adoption with limited space Single Antenna • Enable charging over NFC without any other antenna implementation Foreign Object Detection • Fracture prevention of NFC Tag • Auto suspension in case of object detection Transmission Power Configuration • Power optimization depends on target device INTEGRATION OF COMMUNICATION AND CHARGING 17 Field Power Control Receiver Transmitter Transmitter 6W1W + α ? Advancing Near Field Communication Technology
  18. 18. ROLE OF THE NFC FORUM NFC Forum 18 Advancing Near Field Communication Technology
  19. 19. THE NFC FORUM REPRESENTS Advancing Near Field Communication Technology19 All of the world’s major: ● chip vendors ● payment service providers ● smart phone manufacturers ● mobile operating system providers
  20. 20. SPONSOR MEMBERS Advancing Near Field Communication Technology PRINCIPAL MEMBERS 20
  21. 21. ASSOCIATE MEMBERS Advancing Near Field Communication Technology21
  22. 22. IMPLEMENTER MEMBERS Advancing Near Field Communication Technology22 NON-PROFIT MEMBERS
  23. 23. NFC FORUM SPECIAL INTEREST GROUPS 23 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
  24. 24. LIAISON PARTNERS 24 Advancing Near Field Communication Technology
  25. 25. BECOME A LEADER RAPIDLY GROWING NFC INDUSTRY JOIN THE NFC FORUM! For more information on how to get involved: http://nfc-forum.org/ Advancing Near Field Communication Technology25
  26. 26. THANK YOU! Questions? Advancing Near Field Communication Technology26

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