Gemalto NFC


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NFC market and challenges in China

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Gemalto NFC

  1. 1. Beijing Mobile Monday #35 | Mobile Commerce, Payment & NFC April 26, 2010 @ Cheung Kong Graduate School of Business Mobile Payment for Smart Phones The REAL Killer Application! Karl J. Weaver 魏卡爾 OEM/ODM Handset Business Development Manager 手機事業發展部經理 Gemalto Beijing 金雅拓北京
  2. 2. Who is Gemalto? The worldwide leader in SIM card solutions 1+ billion SIM cards delivered in 2007. Gemalto is the undisputed market leader 400+ 150+ Mobile Telecom OTA platforms Operators Gemalto has the largest installed based of OTA platforms for GSM Gemalto is delivering SIM cards to networks on the field all the largest operators in the world
  3. 3. Gemalto Telecom innovation business line MULTIMEDIA MOBILE CONVERGENCE SIM MOBILE TV Smart Smart SIM CONTACTLESS NFC For Smart Dongles, SIM/Micro SD card solutions Smart SIM Modems, 3G Netbooks solutions solutions solutions 1 Operator Property 2 Secured End-users Authentication 3 Personalizable 4 Secured & Portable Environment 5 Remotely manageable through Over-the-Air Server
  4. 4. Smart Phones and the (short) Road Ahead! Quote: “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.” -Bill Gates, Chairman,Microsoft Corp. Reference, date
  5. 5. Smart Phones – Consumers need what? WANTED: communication tools (voice, SMS, email, and lately social networks). WANTED: convenient services and new capabilities to ADD VALUE to their daily life – like ease in commerce, better transportation options and educational tools (lifestyle applications). WHERE IS THE PROBLEM IN THE INDUSTRY? Carriers: focus on low hanging fruit – Infotainment services, whereas the real industry drivers for the next few years should be mobile commerce and payment. Third-parties (banks, transport companies, service providers): Are confused by the fragmentation of development platforms and do not know how to duplicate existing services (payment..) into the mobile World efficiently and with a large reach. Reference, date
  6. 6. The example of contactless payment as a key lifestyle mobile application for China Unicom in Shanghai in 2009
  7. 7. Contactless Payment This presentation focuses on Mobile Payment because of Gemalto’s expertise in the wireless (Telecom operators) Banking and Transportation sectors for proximity payments (mobile contactless). 2009 was the year pre-commercial roll out of NFC handsets occurred in Asia, 2010 is shaping up to be the real commercial launch! NFC in Asia is primed for SWP (Single-Wire-Protocol) SIM deployment! There are untapped opportunities for Smart Phones not just for payment applications but also in consumer relationship applications (loyalty, couponing, direct marketing, LBS services,..) for all parties.
  8. 8. Contactless Mobile NFC applications Transport Pass, Access, Payment ….. Smart Poster & TAG Reading.. Reader Mode Card emulation mode Can Work, even if Mobile’s Battery has been turned Off Transport Ticketing P2P data exchange Payment Smart Poster Peer to Peer mode Health card Loyalty
  9. 9. Payez Mobile: large mobile payment project with 6 banks, 4 MNOs, Visa and MasterCard 1000 consumers, 200 stores in two cities: Caen and Strasbourg cities Objective: prepare the commercial roll out Gemalto offers TSM services and SIM cards. Multiple banks and multiple operators connected to Gemalto. Complete lifecycle of NFC application OTA Personalization Application download Security Domain management
  10. 10. Results from Payez Mobile Objectives: build the basis for a real deployment Test consumer experience Validate the target architecture (SIM as secure element, OTA banking perso) Results: it works! A great consumer feedback >90% satisfaction The project was launched on time (Partners selection: March 2007 launch in November 2007) Next steps: project continues to prepare the commercial roll out A new bank was introduced New merchants (supermarkets) Gemalto TSM contract was renewed New handsets will be proposed Working groups on certification and interoperability
  11. 11. What is required for mass deployment? Progress status End-user acceptance Excellent feedback from pilots End-user to be reassure in case of loss Business Model -> Trust and cost Win-win model for MNOs and Service Providers Clear definition of roles & responsibilities $ Interoperability Standards Compatibility with existing infra Mobile phones Not just one but a complete range is needed!
  12. 12. Road blocks to NFC Handset Development No designed and customization for mobile payment and mobile commerce. Android, Windows mobile, RIM high-powered OS platforms are forgetting what helps operators make money. As a mobile payment tool, still a long way to go to be designed to interact well with other environments. Handset vendors unable to see other universes Problem of acceptance in the Banking world without adoption of SWP. Mobile Commerce needs standardized payment technologies based on the Smart SIM card as the secure element – defuses fragmentation Reference, date
  13. 13. Chicken and Egg experiences (Caused by both partner’s premature expectations) ou C o y NF D ve ts ha ndse ing? G ha test Pu ive Start for W r c me qu hat has a fo an is e O re tit yo r ca y st ur der NO ? , YES Build NFC functionality into mobile handsets sped up adoption of mobile payment Wireless OEM Handset Operators manufacturer Reference, date
  14. 14. Smart Phone Fragmentation in Chinese markets Multi Smart Phone OS platforms– confusing feature sets not targeted to specific users, which to choose? Shan Zhai Ji vendors are also moving up to build 3G handsets using MeditaTek’s 3G SoC chip for domestic use Smart Phone fragmentation will occur because no way to build an App store, ways to trial, validate, test in operator networks -continued fragmentation.
  15. 15. Standards Drive Mobile Payment Ecosystem SWP NFC simplifies security testing for financial institutions & banks. SWP NFC simplifies RF antenna testing for handsets designed to incorporate Contactless NFC RF chips. (Independent of the application). SIM card Trusted Service Management models will be incorporated to navigate banks, operators, transport firms.
  16. 16. Single Wire Protocol & NFC architecture SIM SIM OTA - - Application logic (java) Application logic (java) - - User credentials User credentials - - Open Platform enabled Open Platform enabled NFC chipset ==CLF NFC chipset CLF - -RF layer RF layer - -Multi-Protocol (ISO 14443 or Multi-Protocol (ISO 14443 or proprietary … proprietary … - -CLF providers : :Inside contactless, ST, CLF providers Inside contactless, ST, NXP, Samsung NXP, Samsung Standardized ETSI 102.622 HCI - Host Controller Interface Communication interface between Handset, NFC radio chipset & SIM Standardized ETSI 102.613 Recommended and used by SWP - Single Wire Protocol 1.5 Mbit/s Battery off mode Open solution (free IP) RF antenna RF antenna
  17. 17. Replace your wallet with your mobile phone – Japan did it! It worked out because of a national standard across all operators and all phone makers DCM launched mobile wallet service,Osaifu-Keitai(wallet-mobile phone) in 2004. Wallet application embedded in the FeliCa chip (Sony), supports credit cards, operator billing, prepaid e-money, transport ticketing and postpay services. 60 million with Mobile Felica-enabled handsets. 35 million are customers of NTT Docomo's i-mode service, 10 million are signed up with KDDI and a further 10 million with Softbank Mobile.. It took about 5 year for growth to occur in Japan, Japanese vendors are migrating over to SWP-based Mobile payment now
  18. 18. Who will influence NFC handset development the greatest in 2010? 1) Apple? 2) Google? 3) Microsoft? 4) RIM? 5) Nokia? 6) Samsung? 7) HTC?
  19. 19. Apple iPhone Patents Filed – The secret is out now!!!! Apple’s Imagination for NFC: Using the accelerometer on the handset to change the orientation of what’s on the Macbook screen. Lock and unlock your Macbook using your iPhone. Unlock doors using iPhone as a keycard
  20. 20. NFC enabled iPhone [And iPod Touch, iMac, Apple TV and Apple Remote] Apple’s untethered future
  21. 21. Apple’s untethered future for NFC connectivity
  22. 22. Control of All In-Home Electronics •iPhones will eventually controlling every single electronics device in the home •iPhone will work with MS Xbox 360, an HDTV and Apple TV remote.
  23. 23. Mobile Payments business around iTunes credits? Apple sees iTunes as one of the key types of account that could be used by consumers, with several of the figures clearly showing iTunes as one of the payments options, along with bank transfer, credit and debit card options.
  24. 24. New iTunes "Concert Ticket +" System Apple wants to enter the electronic concert and event ticket business via a new application and system simply called "Concert Ticket +."
  25. 25. iTravel: Travel App for the iPhone "iTravel“ is a new travel check-in application for Airlines in new ticketless system roll outs planned in the coming years Airline check-in and baggage identification, advanced electronic ID, car rentals, hotel and airline reservations
  26. 26. Windows Tiles and NFC Connectivity in sight! Windows OS now supports Mobile NFC. New Widows tile approach UI, built around Zune and xBox functionality. Gemalto is the only Gold Embedded Smart SIM card partner of Microsoft, and expects to work closely when they move forward with NFC.
  27. 27. HTC - Promising Developments with Contactless NFC Developing 3G Google Android (SWP- based) NFC Smart phone with LBS. Tattoo” Smart phone uses NFC Easy card glued to back of handset as first phase, for possible future NFC flower tag services during the 2010 Taipei Int’l Flora Exhibition
  28. 28. 魏卡爾 – 金雅拓北京 Karl J. Weaver – OEM/ODM Handset Biz Dev Mgr. Gemalto Beijing 出生于马萨诸塞州昆西市(Quincy),后随家人移居华盛顿州Woodinville市。 魏卡爾先生是一位用有国际背景的无线通讯领域专家,拥有丰富的亚洲多元文化商务经验并熟知汉语文化。 1982年,他获得了位于罗德岛新港的萨尔菲里贾纳大学(Salve Regina University) 的理学学士文凭。随后他 得到了国立台湾师范大学,台北语言学院的奖学金,并在那里进行了三年的汉语学习。 1985年,在完成三年的语言学习之后,他开始在微型电子计算机领域内从事工作。从1985年开始到1992年7年 的时间里,他以外贸经理的身份供职于Digicom公司。 在台湾近10年的工作和生活之后,卡尔重返美国,并作为职业无线电领域市场和销售专家为华盛顿地区的4家无 线电及电子通信技术公司工作(Zetron, Metawave, Leviton Voice & Data, 以及 Intrinsyc Software International ),帮助将其市场拓展到了亚太地区。 1999年,卡尔被美国国务院和西雅图WTO会议主委会选派为香港代表团官方联络官。在1999年12月举行的第三 轮部长级会议中,领导一个25人的代表团代表香港政府参加了这次会议。 同年,卡尔获得了华盛顿大学的无线通讯证书。 2004年至2005年年中,他就职于摩托罗拉和飞思卡尔半导体公司(Freescale),在亚利桑那州(Arizona)谭 蓓谷(Tempe)地区,负责短距离无线技术解决方案和移动设备融合研发部门的工作。 2005年,卡尔回到华盛顿州,并被英传信国际软件公司(Intrinsyc Software International)聘为大中华区手机市 场开发经理。 该公司旨在向大中华区原始设备制造商(手机贴牌商)和原始设计制造商(OEM/ODM)推广基 于视窗CE(WINDOWS CE)内核的SKU (最小存货单位) 版本的功能手机操作系统。 2007年,卡尔受聘于西雅图大学,担任阿伯斯(Albers)商业与经济学院兼职副教授,在市场管理系教授三四 年级的全球化课程。 从2002年至今,卡尔已经在100多场研讨会,商贸展以及各种会议中就智能手机、融合移动设备、移动微波接入 互操作系统(Mobile WiMax)以及针对中国及印度的“商业艺术”作过演讲,足迹遍布全美、欧洲和亚洲。 从2008年开始,卡尔就任金雅拓公司(Gemalto,世界上最大的手机SIM卡植入技术的智能SIM卡制造商)中国 办公室手机事业发展部经理。卡尔使用Newport Technologies作为私人工具记录和展示他的演讲。 卡尔的演讲视频同样可以在Youtube.com上看到。如需联系,请发电子邮件至: 或登 陆他的网址
  29. 29. Smart Phones need Mobile Payment Now! Thank you! 謝謝你
  30. 30. Data Innovation Study Finds 70% of Smart Phone Owners Use Mobile Financial Services a large number of respondents were interested in the concept of a mobile wallet. Although no commercial mobile wallet solution is available in the United States today, nearly two-thirds of respondents stated they would be interested in this type of technology and service. Only 10% stated they were not interested in a mobile wallet, and 25% said they were not sure, which could indicate that they need more information on the service.