Learn how NFC technology impacts intermodal smart and mobile ticketing from this presentation. On October 24, 2017, Paula Hunter, NFC Forum Executive Director, presented at SmartTransit USA in Baltimore, Maryland.

1. Paula Hunter, NFC Forum Executive Director
SmartTransit
October 25, 2017, Baltimore
Enabling Seamless Intermodal Smart And Mobile Ticketing

2. THE NFC FORUM REPRESENTS
Advancing Near Field Communication Technology2
All of the world’s major:
● Chip vendors
● Payment service providers
● Smart phone manufacturers
● Mobile operating system providers
● 150 member companies
● Sponsor Members:

3. NFC FORUM’S MISSION
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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.
Or in technical terms: The NFC Forum stands for the open and interoperable implementation of NFC
technology.
Specifications & Application
Documents
Compliance &
Interoperability
Branding, SIGs &
Networking

4. NFC FORUM: DRIVING NFC FORWARD ON ALL FRONTS
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Advancing Near Field Communication Technology
• Ensure compliance and
interoperability with the NFC
Forum’s standards
• Develop and maintain product
certification and
interoperability programs
• Encourage broad adoption of
NFC technology in targeted
vertical markets
• Gather business requirements
to drive work within the
Technical and Compliance
Committees
• Engage market critical liaisons
Compliance
Committee
Special
Interest
Groups
Technical
Committee
• Creation and maintenance
of technical requirements
documents and
specifications
• Engage with NFC Forum
liaison partners

5. LATEST MARKET DEVELOPMENTS
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6. NFC MARKET GROWTH AND PHASES
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Source 1: IHS
Source 2: Markets and Markets
Source 3: Strategy Analytics
Source 4: Juniper
Contactless POS payments to hit $500B in 20174
• Contactless POS terminals to increase by 2021
• Enabling NFC-enabled payments to expand:
• Transport, IoT, Connected Car
• Standard in Europe by January 2020
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

7. Advancing Near Field Communication Technology7
Technology trends creating opportunity for NXP
MOBILE NFC PAYMENT BRANDS EXPANDING GLOBALLY
• Cloud-based, Supports Open Development
• NFC
• HCE-based payment projects worldwide
Apple Pay
• SE-based
• NFC
• Worldwide deployment
Android PaySamsung Pay
• Both-SE and TEE-based
• NFC + MST
• Growing deployment

8. NFC AND PUBLIC TRANSPORT
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9. NFC FORUM’S TRANSPORT SPECIAL INTEREST GROUP
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Members are Public Transport Industry Stakeholders:
• Paving the way for NFC-enabled mobile ticketing
• Developing the mobile ticketing roadmap without
changing Public Transport infrastructures
• Working with industry stakeholders to enable NFC
interoperability:
• Industry Organizations
• Standards Bodies
• Public Transport Operators

10. PUBLIC TRANSPORT - A COMPLEX PROBLEM:
BRINGING TOGETHER U.S. TRANSPORT, PAYMENT, AND MOBILE INDUSTRIES
Advancing Near Field Communication Technology10
Transport Agencies
• 6,792 transport agencies
• Requirements vary from city to city
• Services optimized for “local” rules
and frequent users
Card Issuers
• 5,231 Card-Issuing Banks
• 1.1 Billion Issued Cards
• 453 Million Active Accounts
Mobile Network Operators
• 5 Mobile Network Operators
• 417 Million Mobile Subscribers
• 55% Android, 44% iOS, 1% Other

11. MOBILE TICKETING TODAY:
U.S. TRANSPORT AGENCIES ARE AT VASTLY DIFFERENT STAGES OF TECH
DEPLOYMENT
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Legacy Systems:
Cash, Tokens, Paper Tickets
• New York, NY (MTA)
• Philadelphia, PA (SEPTA)
• Most Small- to Mid-Size Agencies
First Generation Systems:
Smart Cards
• Boston, MA (MBTA)
• Washington, DC (WMATA)
• Seattle, WA (ORCA)
• San Francisco, CA (Clipper)
• Los Angeles, CA (LACMTA)
Next-Gen Systems:
Contactless Open Payments /
NFC Mobile Ticketing
• Chicago, IL (CTA)
• Portland, OR (TriMet)

12. EVOLUTION OF MOBILE TICKETING
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13. DEMAND DRIVING MOBILE TICKETING IN TRANSPORT
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Mobile ticketing market to grow 16.71% CAGR, 2017-20211
Drivers:
● Rapid increase in NFC mobile ticketing apps by 2018
 Replacing paper-based tickets and contactless card solutions
● Rise in NFC smartphones and wearables that support mobile ticketing
 NFC is supported across all smartphones and operating systems
 NFC payment on the rise: Apple Pay, Android Pay and Samsung Pay
● Increase in operators (JR East and Leap Card) migrating to NFC
 NFC mobile ticketing services in use instead of contactless card
platforms
 NFC allows passengers to book and validate tickets quickly
 NFC enables other transport-, banking- and retail-related services http://nfc-forum.org/transport-stakeholders/

14. Advancing Near Field Communication Technology14
NFC-ENABLED IN TRANSPORT AND TICKETING
Contactless card emulation
The NFC phone replaces a transport card,
ticket machine or service point.
Value top-up
Tickets can be reloaded via the phone
connection
Reader mode operation
PTOs can use NFC devices in reader
mode (instead of a custom reader) as a
validator or reader of the customer’s
contactless tickets, concessions, and
reservations.
On-phone data storage
Tickets can be stored on the phone in a
secure manner.

15. NFC: EXPANDING THE MARKET OPPORTUNITY
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16. INTEROPERABILITY IS KEY TO INTERMODAL, MOBILE TICKETING
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● Certified interoperability is mandatory for deployment
• Just a few percent of interoperability issues can mean
thousands of disappointed customers every day
● NFC-enabled mobile ticketing offers many benefits
 Intermodal, one fare medium across several transport
schemes (cross-city and cross-border)
 Support for multiple applications
 Convergence with payment schemes
 Reduction of card issuing costs Easy over-the-air download,
activation, and top-up of transport tickets
 Utilization of the NFC mobile device as a terminal for
contactless chip cards
 Integration of applications and services needed during
Public Transport service

17. Advancing Near Field Communication Technology17
FRAMEWORK FOR INTEROPERABILITY
Interoperability requires continuous cooperation between the relevant standardization bodies
as specifications evolve. The NFC Forum has established relationships with the relevant bodies:
Global network for alignment
on PT market business
requirements
Continuous harmonization of the
relevant specifications via liaisons
Base
standar
ds
PT-specific
standards
Continuous harmonization of the
relevant specifications via liaisons
ISO/IEC14443
ISO JTC1 SC17 WG8
EMVCo L1
EMVCo, LLC
Base
standards
CEN TS16794
CEN TC278 WG3 SG5
ISO TC204 WG8
PT-specific
standards IN PROGRESS

18. Advancing Near Field Communication Technology18
NFC FORUM PUBLIC TRANSPORT
RF INTEROPERABILITY – A GLOBAL INITIATIVE
Initiative:
• Closed gaps between user
requirements and mobile/transport
reader interoperability standards
• Defined testing and certification plans
for NFC mobile devices and PT
infrastructures
Results
• Faster deployment of mobile ticketing
by removing technical roadblocks
• Puts a contactless infrastructure in
place so PTOs have the equipment
they need for mobile ticketing
Next steps for PTOs:
• Modernize infrastructure for NFC mobile
ticketing
• Write mobile transport apps for services
• Decide on ticket security schemes

19. Advancing Near Field Communication Technology19
NEXT STEPS: RF INTEROPERABILITY WITH PT INFRASTRUCTURES
• PTOs have an opportunity to
leverage their existing
infrastructure to modernize
the mobile ticketing and
travel experience
• Getting involved and stay up
to date on the latest
initiatives by working with
the NFC Transport Working
Group

20. UPCOMING NFC FORUM MEMBER MEETING - BERLIN
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Advancing Near Field Communication Technology
For more information on how to get involved: http://nfc-forum.org/
Or via email: phunter@nfc-forum.org
WHAT:
The 2017 NFC Forum European
Member Meeting will be held in
Berlin from October 30 to November
3.

21. THANK YOU!
For more information on how to get
involved: http://nfc-forum.org/
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