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NFC: Shaping the Future of the Connected Customer Experience

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This presentation was delivered March 8, 2017 at RETAILTECH JAPAN by Koichi Tagawa, Chairman, NFC Forum, Sony.

Technology is reshaping the face and function of the traditional brick-and-mortar store, forever changing shopping as we know it. NFC-enabled mobile payments and tags are the latest must-have accessories. Forward-thinking retailers are pushing the boundaries to further engage shoppers—often with nothing more than a simple touch, tap, or swipe. NFC, the technology link between the physical and digital world, is helping build a stronger, more meaningful—and therefore more profitable—relationships with customers. NFC-enabled industries, including transport, automotive and IoT, are opening new doors for retailers. All with a simple tap, consumers can make NFC-enabled transactions using a wearable, their car dashboard, or in an NFC-enabled train station. This presentation will highlight how the growth of NFC is leading to “retail anywhere” NFC-enabled applications. The presentation will spotlight NFC use cases in the Internet of Things, Transportation, Automotive markets and examine the future of NFC-based product innovation.

For latest developments: www.nfc-forum.org

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NFC: Shaping the Future of the Connected Customer Experience

  1. 1. Koichi Tagawa, Chairman, NFC Forum, Sony Enhancing CX with Digital Commerce - RETAILTECH JAPAN March 8, 2017, Tokyo NFC: Shaping the Future of the Connected Customer Experience
  2. 2. WHAT IS NFC? Advancing Near Field Communication Technology2
  3. 3. Advancing Near Field Communication Technology3 Contactless, Connected and Customer Initiated Access Connected Car Connected Home Smart Manu- facturing Smart Mobility Payment Marketing AN NFC-ENABLED WORLD WIDE-RANGING USER EXPERIENCES - NFC EVERYWHERE
  4. 4. NFC AS A UNIQUE RF INTERFACE Advancing Near Field Communication Technology4 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
  5. 5. NFC AS DEFINED BY THE NFC FORUM Modes and Compatibility Advancing Near Field Communication Technology5 NFC Operates in Three Modes NFC is Compatible with Global Communications Standards Global Interoperability Form Factor Free Card (ID-1) NFC-A ISO/IEC 1443/18092 NFC-B ISO/IEC 1443 NFC-F ISO/IEC 18092 NFC Tag (Type 1-5) Device Mobile, Terminals NFC-V ISO/IEC 15693
  6. 6. NFC FORUM Advancing Near Field Communication Technology6
  7. 7. Advancing Near Field Communication Technology7 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
  8. 8. THE NFC FORUM REPRESENTS Advancing Near Field Communication Technology8 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:
  9. 9. 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
  10. 10. SPONSOR MEMBERS Advancing Near Field Communication Technology PRINCIPAL MEMBERS 10
  11. 11. ASSOCIATE MEMBERS Advancing Near Field Communication Technology11
  12. 12. IMPLEMENTER MEMBERS Advancing Near Field Communication Technology12 NON-PROFIT MEMBERS
  13. 13. LATEST MARKET DEVELOPMENTS Advancing Near Field Communication Technology13
  14. 14. GLOBAL NFC MARKET GROWTH Advancing Near Field Communication Technology14 Source 1: IHS Source 2: Markets and Markets Source 3: Strategy Analytics Source 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
  15. 15. JAPANESE E-MONEY GROWTH Advancing Near Field Communication Technology15 Source: Payment and Settlement Statistics by Bank of Japan (Central Bank) 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 0 50 100 150 200 250 300 350 400 450 500 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Transaction (million) Value (100M yen)
  16. 16. Advancing Near Field Communication Technology16 Technology trends creating opportunity for NXP MOBILE NFC PAYMENT BRANDS ARE EXPANDING GLOBALLY AND 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
  17. 17. NFC ECO-SYSTEM IN JAPAN 17 NFC-FNFC-A/B Seamless usage of EMVCo payment and FeliCa services EMVCo platform FeliCa platform Advancing Near Field Communication Technology
  18. 18. NFC-ENABLED MOMENTUM Advancing Near Field Communication Technology18 ● 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
  19. 19. NFC-ENABLED TRANSPORT 1 9. 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 Forum Advancing Near Field Communication Technology19
  20. 20. NFC-ENABLED AUTOMOTIVE 2 0. Mercedes-Benz and Samsung created NFC smartphone car key Tap-and-access user convenience ● NFC-enabled Samsung smartphone with secure SIM card ● Mercedes-Benz companion application ● NFC chip Embedded 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 Advancing Near Field Communication Technology 20
  21. 21. NFC: CONNECTING THE UNCONNECTED Advancing Near Field Communication Technology21 ● 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
  22. 22. Advancing Near Field Communication Technology22 NFC: USER-INITIATED TRANSACTIONS USER INTIATED CONNECTIONS: Common Infrastructures Card Emulation – Payment for: ● Multimedia streaming ● System upgrades ● Tolls, tickets, vending ● Goods, services, gas Physical World To Online World Enhanced User Experience ● BT/WiFi pair: NFC Connection Handover ● Tags: information, access ● Personalize settings ● Wireless power charging ● Service notifications Through Physical Proximity Smart Authorization (Peer to Peer) ● Access to transport, buildings ● Rental or sharing ● Fleet management ● VIP retail experiences Internet of Things
  23. 23. NFC MARKET DEVELOPMENTS: EXPANDING THE RETAIL OPPORTUNITY Advancing Near Field Communication Technology23
  24. 24. NFC RETAIL ANYWHERE CONTACTLESS, CONNECTED, USER-INITIATED 24 NFC Tags Device-to-Device Payment Advancing Near Field Communication Technology
  25. 25. NFC RETAIL ANYWHERE – IN STORES CONTACTLESS, 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
  26. 26. NFC RETAIL ANYWHERE – IN PRODUCTS CONTACTLESS, CONNECTED, USER-INITIATED 26 Advancing Near Field Communication Technology 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
  27. 27. NFC FORUM MEMBER MEETING – LAS VEGAS Advancing Near Field Communication Technology27
  28. 28. For more information on how to get involved: http://nfc-forum.org/ 28 Advancing Near Field Communication Technology Become a Leader in the Rapidly Growing NFC Industry Join the NFC Forum!
  29. 29. THANK YOU! Questions? Advancing Near Field Communication Technology29

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