NFC and Mobile Money Summit Accelerator Classes


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Ray de Silva, MArket Development Director at GSMA outlines some of the progress being made in developing the SIM-secured mobile NFC ecosystem at a recent NFC focussed event in Milan

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  • Founded in 1987 by 15 operators committed to the joint development of a cross border digital system for mobile communicationsThe GSMA represents the interests of mobile operators worldwide. Spanning more than 220 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem.Mandate to drive collective action; Innovating, incubating and creating new opportunities for its membership, to drive the growth of the global mobile communications
  • Spectrum for Mobile Broadband: Securing the spectrum required to meet the fast-growing demand for Mobile Broadband.Mobile NFC: Enabling a wide range of innovative applications, such as mobile ticketing, mobile payments, entertainment services and couponing using SIM-secured mobile NFC.Embedded Mobile: Providing the connectivity that will revolutionise industry sectors such as healthcare, automotive, utilities and education.Rich Communications: Delivering advanced multimedia communications on any device, across any network.Mobile Identity: Unlocking the potential that electronic and mobile identity can offer the industry and its consumers.Creation of Identity/remote enrolment, Proof of Identity (ID Storage and Retrieval, Mobile Digital Signature)Global Roaming: The global roaming market is characterised by strong price declines across all services and widespread tariff innovation. Operators in all regions are driving retail tariff prices down across all services, with declines of up to 82% since 2007. 
  • The consumer is the centre of all of these new opportunities – & they are not thin single layer services – they are coupled to one anotherHaving all of them on a single NFC enabled mobile enables many services in many vertical industriesLikeIn banking – payments, transfer & banking servicesTickteting, stadium, gig access, Transportation – bus, train, tramLoyalty - coupled with a retail experience and paymentAccess as we have seen before. There are MANY other verticals and opportunities.
  • For us – that next step of interoperability is critical.In order to interoperate NFC must be global to deliver economies of scale (great if you can use NFC here in China, but NYC, London, Korea, Japan) – so it must interoperate from country to country. One key aspect of this interoperability is global and foundational technical specs as well as security. We see that happening right now in the SIM card. Our view puts the SE, or secure element, on the SIM. In addition, as mentioned previously, SIM-based handsets account for nearly 90% of the mobile world - providing an incredible distribution mechanism for the future of NFC.This allows open access to a variety of ecosystems and adjacent industries including transport, retail, banking, access control, loyalty and vouchering.Finally, the consumers have to be at the heart of the equation with access, ubiquity, interoperability, scale, & security.
  • There is clear momentum in the market today, with new NFC service launches, new devices and new partnerships being announced all the time. This is not an exhaustive list by any means, but I would like to highlight some of the key deployments and trials around the world. Here’s one that I’m very familiar with – in France, the Cityzi service has been in service in Nice since May 2010, and the city of Strasbourg will be the second in France to offer a commercial NFC service from October 17th. The service will be rolled out in 8 more cities across France by the middle of 2012. In the United States, ISIS has formed business relationships with Visa, MasterCard, Discover and American Express, which provides merchants and consumers ubiquity and freedom of choice when it comes to payment network acceptance. ISIS is on course to deploy services in 5 cities in 2012.In Asia, we see collaboration among the Japanese and Korean operators to provide cross-border NFC services. KDDI, Softbank and SK Telecom have been testing cross-border NFC services with the aim of launching commercial services by the end of this year. The first services in trial include mobile payments and smart posters. NTT DOCOMO and KT are also developing NFC services that span Japan and Korea, and plan to deploy commercially in 2012. Services will include mobile payments, mass transit ticketing and promotional couponing services. Clearly, there is significant momentum behind NFC around the world.Frost and Sullivan estimates that by 2015, there will be more than 860 million NFC-enabled handsets worldwide, and the payment value of NFC will reach €110 billion globally.
  • NFC and Mobile Money Summit Accelerator Classes

    1. 1. Mobile NFC Services Programme 2012-2013 Mobile Money Summit – Accelerator Classes 24 October 2012, Milano Ray de Silva Market Development DirectorRestricted - Confidential Information© GSM Association 2012All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
    2. 2. The GSMAThe GSMA represents the interests of mobile operators worldwide.Spanning more than 220 countries, the GSMA unites nearly 800 of theworld’s mobile operators, as well as more than 200 companies in thebroader mobile ecosystem.
    3. 3. GSMA Key Programmes Spectrum Mobile NFC Connected Living Rich Communications SIM Based Identification Global Roaming© GSM Association 2012
    4. 4. Mobile NFC Programme Existing Markets: • Canada • Asia (CJK) • Brazil • Poland • Western Europe • Nordics • Australia New Markets: • Latam • Eastern Europe • Asia© GSM Association 2012
    5. 5. NFC Momentum is growing 2004-5 2006-7 2008-10 2011 2012/13© GSM Association 2012
    6. 6. Mobile NFC brings new services to the consumer Consumer Payments Ticketing Transportation Loyalty/Coupons Access Control© GSM Association 2012
    7. 7. The Secure Element  A secure element is required to safely store a user’s identity information, for services demanding high levels of security  Sticker  MicroSD  Embedded  SIM-based Easy to produce & attach  Easy to attach  Supports multiple  SIM is certified & services standardised No interaction with phone  Existing mobile devices  OTA updates  Global standards (SWP) Supports 1 service provider  Supports 1 service  No service portability  Supports multiple Not standardised provider  Customer care unclear services  Customer care unclear  OTA updates  Not standardised/certified  Not  Portable SIMs standardised/certified  Operator customer care © GSM Association 2012
    8. 8. Why SIM? Allows consumers freedom of portability between both network operators and handset providers, creating an open competitive environment for all globally. NFC Technology Provides global interoperability through certified open standards that can be used by anyone, anywhere in + the word, regardless of operator, or NFC-enabled handset. Very secure. It can meet certified bank grade security SIM Secure Element standards and allows for ‘over the air’ management in = the event of loss. Mobile NFC© GSM Association 2012
    9. 9. Why Mobile Operators?  Substantial distribution channels to provide and promote NFC enabled services, and have sufficient economies of scale to provide mobile contactless to all  Customer care infrastructure providing consumers with a trusted transaction partner issues relating to their mobile services  Technical infrastructure for the provisioning and management of SIM cards and ensuring adequate security  Substantial experience in standards-based and interoperable services, enabling strong ecosystem development based on the mobile platform© GSM Association 2012
    10. 10. ISIS SIM-based NFC teaser video© GSM Association 2012
    11. 11. The Scale of NFCGlobal mobile payment transaction volumeswill increase over the next five years to more than 50% of all smartphonesUS$1.3 trillion will be NFC enabled by 2015 (Gartner - March 2012)(Juniper August 2012)Samsung have sold over Over 600k contactless enabled PoS in China20 Million (NFC Times Julne2012).Galaxy SIII Handsets 100k contactlessin 100 days (Samsung - Aug 2012) in the UK (UK Cards Association - September 2012 In 2013 up toOver 50% of spending put throughVisa in Europe in 2020 300 millionwill be via a mobile device NFC smartphones, tablets(Visa – Jan 2012) and eReaders will be sold (Deloitte - Jan 2012) © GSM Association 2012
    12. 12. Global SIM Based Mobile NFC Initiatives Canada USA France Korea Singapore UK Commercial services also launched in: Poland, Czech Republic, Japan, New Zealand, Turkey© GSM Association 2012
    13. 13. Contactless payment Poland/Germany Summary NFC in Poland • T-Mobile & Orange launching mobile payment solutions in the next 2 months • New technology gives new players the option to enter established markets/processes • Payment will be a carrier for other contactless services • Poland is the leading country for NFC/contactless payment • EURO 2012 contactless payment was in focus of marketing campaigns by payment/bank industry • More and more merchants© GSM Association 2012 accept contactless payments
    14. 14. Singtel NFC mpayment serviceMajor Singapore Operators — SingTel, Starhub, and M1released their NFC mobile wallets. These apps have amassed thousands of downloads A fast way to pay - no longer need to worry about not having cash on hand Convenient and secure - Fast, easy and contactless, grab your purchases within minutes! Instant and easy top-up - skip the queues and top up via your phone. Widely accepted - over 20,000 merchants with the© GSM Association 2012
    15. 15. To Summarise – The Solution  Collaboration is essential  Reduces fragmentation  Improves interoperability  Government backing (e.g. France, Singapore) was extremely important to help ecosystem building and triggering collaboration  Interoperability  Open standards are essential  Increases competition by lowering barriers to entry  Increases diversification and so allows new players to offer services  Increases consumer choice  Security  Consumer Security and Privacy comes first  There is no compromise on the bank grade security offered via SIM- based NFC© GSM Association 2012
    16. 16. Contact informationwww.gsma.comRay de SilvaMarket © GSM Association 2012