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Beyond cards, phones and terminals: New payment form factors

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

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Beyond cards, phones and terminals: New payment form factors

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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