Terunao Tsuchiya, NFC Forum Board of Directors, Dai Nippon Printing
Asia Pacific Smart Card Association
March 11, 2016, Tokyo
NFC Mobile Payments 2016
What’s Next?
Advancing Near Field Communication Technology2
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.
NFC FORUM MISSION
STRATEGIC FOCUS FOR 2016
3
Transportation
Internet of Things
Payment
Pervasive use of
contactless
payment via mobile
devices
NFC technology an
accepted element and
the tool of choice for
non connected
devices
Growing access and
increased usage rates
of NFC technology in
PTOs worldwide
LATEST MARKET DEVELOPMENTS
Advancing Near Field Communication Technology4
NFC MARKET GROWTH (CAGR)
5
43.7%
50.6%
2014 - 2019
Source: Technavio
2013 - 2019
Source: Transparency Market
Research
Advancing Near Field Communication Technology
GLOBAL MOBILE PAYMENT GROWTH
Advancing Near Field Communication Technology6
0
2000
4000
6000
8000
10000
12000
2015 2016 2017 2018 2019
Revenue (US $100M)
Revenue (US
$100M)
Source: TrendForce, Feb. 2016
NFC PAYMENT, TRANSPORTATION AND
IOT IN ACTION
Advancing Near Field Communication Technology7
MOBILE NFC PAYMENT IS EXPANDING GLOBALLY
Advancing Near Field Communication Technology8
• Supports open development
• Carriers on board
• HCE-based payment projects
all over the world
• Accelerating contactless infrastructure investment
Full scale deployment of Mobile Payment in US
Apple Pay
• Thousands of banks
• Millions of locations
• US, China, Canada, UK, Australia
Android PaySamsung Pay
• Launched in S. Korea, US
• 5M Users in S. Korea, US
• NFC + MST
NFC IN PAYMENT GROWTH
9
● Two of the four largest Australian
banks rolled out mobile pay for all
customers
● Barclaycard completed deployment of
HCE to mobile app and sees 164%
increase in contactless transactions
● Largest multi-bank payment solution
with 200 Scandinavian banks
announced
Within the past month:
Source: NFCWorld+
Mobile payment methods will see a five-
year compound annual growth rate of
more than 43% to $4 trillion in 2020.
Source: IDC
NFC IN PUBLIC TRANSPORT GROWTH
10
● Netherlands launched Android-based
NFC public transport payment trial
● Moscow launched NFC public
transport ticketing
● UK Cards Association announces
framework for nationwide NFC public
transport payment
Within the past month:
Source: NFCWorld+
An estimated 1.5 billion boarding passes will
be issued via smartphone by 2019
Source: Juniper Research
THE INTERNET OF THINGS ...
Advancing Near Field Communication Technology11
... AND THE CONNECTED CONSUMER
NFC IN INTERNET OF THINGS GROWTH
12
● Energy harvesting for the connected
home
● Luxury goods and collectable
authentication
● Tracking and monitoring sensor data
IoT solutions in use right now:
According to IDC, IoT spending will top $1.4
billion by 2019
Source: IDC
PARADIGM SHIFT: WHAT NFC BRINGS
13 Advancing Near Field Communication Technology
FROM COMPANY DRIVEN TO INDUSTRY DRIVEN
14
1 model, Global Market
Market Structure Shift
Regional base to Global base
NFC Popularity in B2C product
Industry Structure Shift
Vertical to Horizontal Integration
Standard Feature on Mobile OS
App Development Process Shift
MNO centric to Mobile OS centric
Product Enhancement
Card/RW to Mobile/Embedded device
Next Stage
Security: Chip base to total optimization
New feature: Wireless Charging
Economies of Scale
Industry Driven
Advancing Near Field Communication Technology
2 BILLION CLASS PLATFORM
15
● Impact on B2C market
 Billions of deployed NFC devices now available to support your service offering
 New use cases can be introduced on Day 1 over the platform
● Impact on B2B market
 Enables easy development of contactless applications without dedicated equipment
 Commoditization of acceptance terminal
 Market figure of FY2014: POS terminal 30M unit vs. NFC device 500M unit
Advancing Near Field Communication Technology
THE ABILITY TO CONNECT THE UNCONNECTED
Advancing Near Field Communication Technology16
● It‘s The Internet of Things, not The Internet of
Electronic Things
● Need a way to embed intelligence in
unpowered, unconnected objects and things
● Need a way to gather data from unpowered,
unconnected objects and things
Small Form Factor
• Advantage of 13.56MHz, small antenna
• Possible adoption with limited space
Single Antenna
• Enable charging over NFC without any other
antenna implementation
Foreign Object Detection
• Fracture prevention of NFC Tag
• Auto suspension in case of object detection
Transmission Power Configuration
• Power optimization depends on target device
INTEGRATION OF COMMUNICATION AND CHARGING
17
Field Power
Control
Receiver
Transmitter
Transmitter
6W1W
+ α ?
Advancing Near Field Communication Technology
ROLE OF THE NFC FORUM
NFC Forum
18 Advancing Near Field Communication Technology
THE NFC FORUM REPRESENTS
Advancing Near Field Communication Technology19
All of the world’s major:
● chip vendors
● payment service providers
● smart phone manufacturers
● mobile operating system providers
SPONSOR MEMBERS
Advancing Near Field Communication Technology
PRINCIPAL MEMBERS
20
ASSOCIATE MEMBERS
Advancing Near Field Communication Technology21
IMPLEMENTER MEMBERS
Advancing Near Field Communication Technology22
NON-PROFIT MEMBERS
NFC FORUM SPECIAL INTEREST GROUPS
23
Special Interest
Groups (SIG)
Technical
Committee
Japan
Task Force
Six Working Groups lead
technical discussions, and
create and maintain all
aspects of the NFC Forum
technical specifications.
Activities are open to all
members except Implementer
members, with voting rights
for Sponsor and Principal
Members.
SIG Working Group and Task
Force activities build value
across key market sectors.
Efforts are open to all
members.
Three Working Groups
manage the framework for the
NFC Forum Certification
Program and Plugfest Events.
Activities are open to all
members except Implementer
members, with voting rights
for Sponsor and Principal
Members.
This group was established to
promote NFC to this regional
market and overcome the
challenges of migration from
its legacy infrastructure. Key
players in the region have
been sharing NFC use cases
and best practices, as well as
identifying opportunities to
expand activities with the SIG
Working Groups.
Compliance
Committee
Advancing Near Field Communication Technology
LIAISON PARTNERS
24 Advancing Near Field Communication Technology
BECOME A LEADER RAPIDLY GROWING NFC INDUSTRY
JOIN THE NFC FORUM!
For more information on how to get
involved: http://nfc-forum.org/
Advancing Near Field Communication Technology25
THANK YOU!
Questions?
Advancing Near Field Communication Technology26

NFC Mobile Payments 2016 What’s Next?

  • 1.
    Terunao Tsuchiya, NFCForum Board of Directors, Dai Nippon Printing Asia Pacific Smart Card Association March 11, 2016, Tokyo NFC Mobile Payments 2016 What’s Next?
  • 2.
    Advancing Near FieldCommunication Technology2 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. NFC FORUM MISSION
  • 3.
    STRATEGIC FOCUS FOR2016 3 Transportation Internet of Things Payment Pervasive use of contactless payment via mobile devices NFC technology an accepted element and the tool of choice for non connected devices Growing access and increased usage rates of NFC technology in PTOs worldwide
  • 4.
    LATEST MARKET DEVELOPMENTS AdvancingNear Field Communication Technology4
  • 5.
    NFC MARKET GROWTH(CAGR) 5 43.7% 50.6% 2014 - 2019 Source: Technavio 2013 - 2019 Source: Transparency Market Research Advancing Near Field Communication Technology
  • 6.
    GLOBAL MOBILE PAYMENTGROWTH Advancing Near Field Communication Technology6 0 2000 4000 6000 8000 10000 12000 2015 2016 2017 2018 2019 Revenue (US $100M) Revenue (US $100M) Source: TrendForce, Feb. 2016
  • 7.
    NFC PAYMENT, TRANSPORTATIONAND IOT IN ACTION Advancing Near Field Communication Technology7
  • 8.
    MOBILE NFC PAYMENTIS EXPANDING GLOBALLY Advancing Near Field Communication Technology8 • Supports open development • Carriers on board • HCE-based payment projects all over the world • Accelerating contactless infrastructure investment Full scale deployment of Mobile Payment in US Apple Pay • Thousands of banks • Millions of locations • US, China, Canada, UK, Australia Android PaySamsung Pay • Launched in S. Korea, US • 5M Users in S. Korea, US • NFC + MST
  • 9.
    NFC IN PAYMENTGROWTH 9 ● Two of the four largest Australian banks rolled out mobile pay for all customers ● Barclaycard completed deployment of HCE to mobile app and sees 164% increase in contactless transactions ● Largest multi-bank payment solution with 200 Scandinavian banks announced Within the past month: Source: NFCWorld+ Mobile payment methods will see a five- year compound annual growth rate of more than 43% to $4 trillion in 2020. Source: IDC
  • 10.
    NFC IN PUBLICTRANSPORT GROWTH 10 ● Netherlands launched Android-based NFC public transport payment trial ● Moscow launched NFC public transport ticketing ● UK Cards Association announces framework for nationwide NFC public transport payment Within the past month: Source: NFCWorld+ An estimated 1.5 billion boarding passes will be issued via smartphone by 2019 Source: Juniper Research
  • 11.
    THE INTERNET OFTHINGS ... Advancing Near Field Communication Technology11 ... AND THE CONNECTED CONSUMER
  • 12.
    NFC IN INTERNETOF THINGS GROWTH 12 ● Energy harvesting for the connected home ● Luxury goods and collectable authentication ● Tracking and monitoring sensor data IoT solutions in use right now: According to IDC, IoT spending will top $1.4 billion by 2019 Source: IDC
  • 13.
    PARADIGM SHIFT: WHATNFC BRINGS 13 Advancing Near Field Communication Technology
  • 14.
    FROM COMPANY DRIVENTO INDUSTRY DRIVEN 14 1 model, Global Market Market Structure Shift Regional base to Global base NFC Popularity in B2C product Industry Structure Shift Vertical to Horizontal Integration Standard Feature on Mobile OS App Development Process Shift MNO centric to Mobile OS centric Product Enhancement Card/RW to Mobile/Embedded device Next Stage Security: Chip base to total optimization New feature: Wireless Charging Economies of Scale Industry Driven Advancing Near Field Communication Technology
  • 15.
    2 BILLION CLASSPLATFORM 15 ● Impact on B2C market  Billions of deployed NFC devices now available to support your service offering  New use cases can be introduced on Day 1 over the platform ● Impact on B2B market  Enables easy development of contactless applications without dedicated equipment  Commoditization of acceptance terminal  Market figure of FY2014: POS terminal 30M unit vs. NFC device 500M unit Advancing Near Field Communication Technology
  • 16.
    THE ABILITY TOCONNECT THE UNCONNECTED Advancing Near Field Communication Technology16 ● It‘s The Internet of Things, not The Internet of Electronic Things ● Need a way to embed intelligence in unpowered, unconnected objects and things ● Need a way to gather data from unpowered, unconnected objects and things
  • 17.
    Small Form Factor •Advantage of 13.56MHz, small antenna • Possible adoption with limited space Single Antenna • Enable charging over NFC without any other antenna implementation Foreign Object Detection • Fracture prevention of NFC Tag • Auto suspension in case of object detection Transmission Power Configuration • Power optimization depends on target device INTEGRATION OF COMMUNICATION AND CHARGING 17 Field Power Control Receiver Transmitter Transmitter 6W1W + α ? Advancing Near Field Communication Technology
  • 18.
    ROLE OF THENFC FORUM NFC Forum 18 Advancing Near Field Communication Technology
  • 19.
    THE NFC FORUMREPRESENTS Advancing Near Field Communication Technology19 All of the world’s major: ● chip vendors ● payment service providers ● smart phone manufacturers ● mobile operating system providers
  • 20.
    SPONSOR MEMBERS Advancing NearField Communication Technology PRINCIPAL MEMBERS 20
  • 21.
    ASSOCIATE MEMBERS Advancing NearField Communication Technology21
  • 22.
    IMPLEMENTER MEMBERS Advancing NearField Communication Technology22 NON-PROFIT MEMBERS
  • 23.
    NFC FORUM SPECIALINTEREST GROUPS 23 Special Interest Groups (SIG) Technical Committee Japan Task Force Six Working Groups lead technical discussions, and create and maintain all aspects of the NFC Forum technical specifications. Activities are open to all members except Implementer members, with voting rights for Sponsor and Principal Members. SIG Working Group and Task Force activities build value across key market sectors. Efforts are open to all members. Three Working Groups manage the framework for the NFC Forum Certification Program and Plugfest Events. Activities are open to all members except Implementer members, with voting rights for Sponsor and Principal Members. This group was established to promote NFC to this regional market and overcome the challenges of migration from its legacy infrastructure. Key players in the region have been sharing NFC use cases and best practices, as well as identifying opportunities to expand activities with the SIG Working Groups. Compliance Committee Advancing Near Field Communication Technology
  • 24.
    LIAISON PARTNERS 24 AdvancingNear Field Communication Technology
  • 25.
    BECOME A LEADERRAPIDLY GROWING NFC INDUSTRY JOIN THE NFC FORUM! For more information on how to get involved: http://nfc-forum.org/ Advancing Near Field Communication Technology25
  • 26.
    THANK YOU! Questions? Advancing NearField Communication Technology26