Dear all,First if all, on behalf of all the teams that participated, I would like to welcome you all on the final event of the IBBT NFC-Voucher project. During this half day event, we would like to give an overview of the project.
But let us start with the general overview
In this IBBT project, we studied the feasibility of using the NFC technology in the context of a vouchering system. From the title at least the two main words need some explanation.“What is NFC “ is a first topic we will tackle. We will briefly explain the technology, the possibilities and the current status. In the project context, this technology is then applied on the existing system of vouchering. We will go more in detail on this ecosystem, identifying the stakeholders and their interactions.The evolution from a paper voucher system towards an NFC based system has major impact on a lot of aspects of the vouchering system. We will give an overview of how these aspects have been handled and the main objectives that were put down at the start of the project.
But first,What is NFC or Near Field Communication...
NFC is a technology that allows two devices to establish contactless communication over a short range (typically a couple of centimeters, but up to 10 cm). The speed of communication ranges between 106 and 424 kbit/sec. These numbers obviously don’t paint the complete picture. Compared to a contact smart card (operating at 9kbit/sà, NFC is much faster but Bluetooth, also a contactless communication standard, is in it’s turn much faster with speeds up to 2 Mbit/sec . However, NFC communication has some major advantages over Bluetooth.First of all, it operates over a shorter range, which from a security perspective makes it less obvious to evedrop. Moreover the connection set-up is much faster and it’s use is very intiutive. Two NFC devices just need to touch to exchange informationApart from that, NFC is compatible with a range of widely used contactless smartcards standards which makes it very interesting from a use case perspective.
NFC technology can be integrated in a wide variety of devices, ranging from a mobile phone over a smart phone and PDA to PC. This can of course be extended to other customer appliciances. These NFC devices are capable of generating an Radiofrequent field to initiate NFC communication. Next to the device, there a familty of NFC tags that are not capable of generating an RF field and need to field to be activated. These NFC tags can be integrated in paper, plastic cards or other form factors to generate smart posters, stickers, contactless cards or smart objects. TheNFC specifications define three modes of operation for an NFC device:In the Reader/Writer mode the NFC device is capable of reading an NFC tag. In this mode for instance the NFC device is able to read the information from a smart poster.In the Peer-2-Peer mode, two NFC devices exchange data. In the Card Emulation mode, the NFC device appears to an external device as a conventional contactless smart card. A typical example is the use of a mobile phone as a contactless payment card
This short overview of the technology and the modes of operation brings us to the use of this new technology. Integration of NFC in device with additional interfaces like a graphical user interface and wireless internet opens a lot of possible fields of application. This slide only lists a handful examples. .........
Given all this, it’s important to realise where we are for the moment. Already for a couple of years, worldwide pilots are announced. These pilots have show the potentials of the NFC technology in different application areas. The pilots remain isolated and one of the main show-stopper for large scale deployment is the availability of devices implementing the NFC specifications. In addition the new ecosystem needs some time for different actors (handset manufacturers, SIM card manufacturers, mobile operators, payment schemes, trusted security providers, ...) to define their role in the system. 2010 however has been announced to be a keystone year for NFC. Different handset manufacturers have announced new models. Worldwide, projects emerge that go beyond the pilot phase. One example is .... In NiceIn parallel with these evolutions, the NFC Forum is implementing a certification environment to go into operation at the end of the year to assure interoperability between NFC devices.
Having highlighted NFC, we will now give an overview of the vouchering system
Most of you are probably familiar with the concept of meal vouchering. From a payment perspective, meal vouchering is a prepaid payment system. The employer (and partially the employee) pay the voucher issuer to generate meal vouchers, that can later on be used in payment. The system was introduced 45 years ago, as a way to compensate employees that could not eat at a company canteen or that were on the road for business on a regular basis.It has been largely acknowledged as a part of the remuneration package, since about 80% of the employers use the system. This results in about 40% of the employees receiving meal vouchers. A large part of the success of the system is the beneficial regime both at social security and tax level.The government has defined some restrictions for the system. An employee is entitled to one voucher per working day. In Belgium, meal vouchers have a facial value with a maximum of € 7. The vouchers are typically non-splitable, and have an validity period of 3 months. After this time, the vouchers lose their value. Moreover, meal vouchers can only be used to buy a meal in a restaurant or purchase food. On a yearly basis 250 million meal vouchers are issued. This gives an idea of the economic importance of the system.
When extending the scope, over time the family of vouchers has extended. Gift Vouchers, On us vouchers and Eco-cheques can be used by employers for special occasions or to reward employees. Gift vouchers and On Us vouchers can be used for non-food purchases. On Us vouchers are typically limited to a certain merchant. Eco-cheques can be used to buy ecological products or services.Again, when taking into account the legal regulations, these vouchers result in favourable tax and social security regimes. For the moment, all these vouchers exist in a paper form. And are therefore future candidates to be migrated to an electronic form. It’s also interesting to note that together with the vouchers, coupons are distributed. As we saw earlier couponing is also identified as a use case for NFC technology.
If we look at the actors in the voucher system, we can identify four actors: the voucher issuer, the customer (or employer), the beneficiary (or employee) and the affiliate (or merchant).Here, we take over the typical terminology of the voucher system.The Voucher Issuer is the institution responsible for the vouchering scheme, generating and issuing the vouchers
The customer has a contractual relationship with the issuer. On a monthly basis the customer orders vouchers. The number depends on the number of worked days and the number of beneficiaries.
In most cases, the voucher issuer will deliver the vouchers to the client....
Who will in his turn distribute the vouchers to the employees, also called beneficiaries
The beneficiary can uses the vouchers in an affiliate’s shop. It’s important to note that vouchers can be used only in shops that have a contractual agreement with the voucher issuer.
On a regular basis the affiliate will gather the vouchers and send the vouchers to the voucher issuer. At the voucher issuer every voucher is digitalized using OCR software. In case of damaged vouchers, manual processing is needed. Once the vouchers are validated (counterfeit, validity,...), the totals are made per affiliate
In a final step the affiliate is reimbursed for the valid vouchers that have been submitted.From this cycle, you can see that in a paper voucher system, there is no direct relationship between beneficiary and voucher issuer.
In our project approach, we went for a complete digitalisation of the vouchers, but keeping the voucher as an entity. This means that digital vouchers are actually created can physically be stored as a data entity. This is in contrast with an online system where beneficiaries have a voucher account on the issuer host. In a payment, the beneficiary is identified by his/her card or NFC phone.If we look at the impact for the different actors in the scheme, we can identify the following changes The issuer needs a host system for generating and distributing the voucher issuer’s host system. The issuer also needs an host system capable of validating the vouchers when they are returned in a payment process. The benificiary needs an NFC enabled handset running a dedicated NFC voucher payment application, and containing a secure element to store the NFC vouchers. The affiliate in his turn needs an NFC enabled terminal to accept the NFC vouchers, and an online connection to the NFC voucher authorisation host
When we now look at the vouchering cylce, in a first step, after receiving an order and payment from the customer,NFC vouchers are generated in a secure way on the issuer host. The voucher issuer, having the information on the beneficiary will upload the NFC Vouchers towards the beneficiary’s NFC payment application on the handset. The technology used in this context is MMS.The host will keep a reference of the NFC Voucher that is used in the validation process during payment. We already see a difference with the existing paper voucher scheme, where we now have is a direct and clear relationship between voucher issuer and beneficiary.
In a payment process the beneficiary will use his NFC handset to touch the terminal. In this process, the NFC vouchers are removed from the handset.From an NFC perspective the phone will be used in Card Emulation mode.
The terminal will send the NFC Vouchers to the host for validation. The signature over the voucher and the validity will be checked. The host will inform the terminal on the outcome of the validation and in this way authorise the payment.
By using the offline approach a second use case can be foreseen, where NFC vouchers are transferred from one handset to another, by bringing handsets in close contact. From an NFC point of view, the Peer-2-Peer mode is used. One handset is the sender, whereas the other is a receiver.
The implementation of a new technology as a replacement of an existing scheme has great impact on aspects beyond the pure technological. Therefore for this project, academic research groups and industrial partners of different backgrounds and expertise teamed up to investigate these difference aspects. We can identify 4 major areas of expertise...
... And map the different teams in this diagramIntegri and Clear2Pay were responsible for writing the concept paper and the interface specifications based on the input of the different partners, and were also involved in the validation of the transaction logic and the building of the host simulation Keyware focussed on the definition of the terminal requirements and the actual implentation of the terminal application, WICA was responsible for the NFC application code on the handset, the so called midlet CUO defined the user scenarios and usability requirements. COSIC defined the high-level security architecture. For every use case, COSIC also analysed and specified the security requirements. ICRI developed the legal framework on protection of personal data SMIT was responsible for the business model analysis - Accor Services worked closely together with SMIT on the validation of the new business model
Electronic meal vouchers for NFC phones . An overview of the IBBT/NFC-Voucher project - Gerd Thys (Clear2Pay / Integri)
Electronic meal vouchers for NFC phones<br />Gerd Thys<br />Head of Technology Test Tools<br />Clear2Pay / Integri <br />05/03/2010 Leuven<br />An overview of the IBBT/NFC-Voucher project<br />
Near Field Communication <br />What is NFC (Near Field Communication)?<br />Short range (max. 10 cm) contactless communication (up to 424 kbit/s) <br />Easy communication set-up<br />Intuitive in use - Data transfer by ‘touching’<br />Integrates most existing contactless card protocols - NFC works with existing contactless cards and terminals<br />5<br />
Near Field Communication<br />2 categories<br />NFC enabled devices (Mobile Phone, PDA, PC,Consumer appliances)<br />NFC Tags (Contactless smart cards , Smart Posters (tags included in posters) or smart objects)<br />3 modes of operation<br />Reader / Writer Mode – Interact with Tag <br />Peer-2-Peer Mode – Interact with Device<br />Card Emulation Mode – Act as Tag<br />6<br />
Near Field Communication<br />NFC Use Cases / Possible areas of application<br />Transport (electronic ticketing)<br />Retail (loyalty, coupons, product tagging, advertisement via smart posters,...)<br />Healthcare (social security card,..)<br />eGovernment (eID, driver’s license,...) <br />Access control and attendance tracking<br />Payment<br />NFC Forum is driving force. Industry association with 140 members (handset manufacturers, chip manufacturers, mobile operators, application developers, system integrators...)<br />7<br />
Near Field Communication<br />Current Status of NFC - Early phase<br />Pilots all over the world <br />Up to now limited number of devices available. <br />2010 expected to be keystone year<br />Manufacturers announced multiple models (e.g. Nokia in Q3 / Q4)<br />Deployment beyond pilot (Nice, ...)<br />Take off of the NFC Forum certification regime (‘FNC Forum Certified Device’)<br />8<br />
Paper voucher system<br />Paper meal voucher scheme in Belgium<br />Prepaid payment system for food<br />Attractive as part of salary<br />Free from social security contribution<br />Tax benefits for employer and employee<br />Characteristics<br />Face value (typically € 5 to € 10) <br />Periodicity (number of vouchers according to worked days)<br />Expiration date (3 months)<br />250.000.000 meal vouchers issued/year <br />10<br />
Paper voucher system<br />Apart from meal vouchers<br />Gift vouchers<br />On us vouchers<br />Eco-cheque<br />Couponing<br />11<br />
Paper voucher system<br />Disadvantages<br />Handling (logistics)<br />Delivery of vouchers, collection at Merchant<br />A lot of manual processing (damaged, deteriorated vouchers,..)<br />Storage: archiving period of 4 years<br />In shop – speed of processing (large distribution!)<br />Lost vouchers: not reimbursed<br />19<br />
29<br />Objectives<br />Objectives at start of project in 2008<br />Check how NFC can be used in Belgium <br />Clear Case : meal vouchers<br />Define a business case<br />Study the constraints : Usability, legal, technical <br />Develop an actual NFC application (one of the first in Belgium)<br />Explore new opportunities<br />
30<br />Innovation<br />NFC as new technology<br />First project to investigate offline vouchering in NFC<br />Security requirements<br />Use of electronic vouchering<br />Privacy issues<br />eMoney<br />User experience<br />