The document discusses using smart microSD cards as an approach for near field communication (NFC) services. It proposes that smart microSD cards, which have a built-in secure element and optional NFC antenna, allow for contactless services and security tokens while giving end users control over apps and services. This approach offers benefits like the largest reach across devices, business independence for service providers, and a consumer-centric model focused on creating value for all parties involved. Specifications and underlying hardware for smart microSD cards are already available.

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smart microSD
The Best Approach for NFC
May 2013

2. © SD Association. All rights reserved.
SD Today
A global ecosystem of 1,000+ companies setting industry-
leading memory card standards.
Est. 8,000+ consumer electronics models manufactured by
400+ brands worldwide rely on SD standards.
microSD is the #1 memory card form factor
for mobile devices with ~95% of mobile
memory card shipments
78% of all mobile phone shipments have a
memory card slot
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MOBILE PHONE
IS THE MOST CARRIED, CONVENIENT TO ACCESS,
#1 END USER DEVICE
MOBILIZATION OF SERVICES:
A REQUIRED STRATEGIC EVOLUTION

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Mobilization of Security Services
4
CONTACTLESS CARD SERVICES
SECURITY TOKENS
REQUIREMENTS:
• Contactless capabilities
• Adequate secure element
REQUIREMENTS:
• Adequate secure element
• +/- display, etc.

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Mobilization of Security Services
5
SE
SE
CONTACTLESS CARD SERVICES
smart microSD with built in SE and
external SWP connection to host NFC
• Specifications released and available
• Global platform + JavaCard
• SWP additional pin for NFC phones
• Additional ASSD protocol
• Compatible smart microSD compliant phones
• Standardized solutions available from various vendors
SECURITY TOKENS
microSD with built in SE+NFC
• Antenna and SE embedded
• Global platform + JavaCard
• Proprietary solutions from various vendors
(standard solution with ASSD protocol possible)
• Compatible with most phones with microSD
SE
SE
Meet all requirements
 Contactless capabilities
 Adequate secure element
 Display for enhanced user experience

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microSD
KEY BENEFITS
FOR SERVICE PROVIDERS

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Largest Reach and Worry-Free
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Users’ current phone (with microSD)
Any mobile operators
Any mobile plan
Phones with and without* NFC
* Without NFC: Proprietary solutions
User’s
Current
Phone
Applets

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Business Independence
8
 Easier launch. Lower cost.
No need for 3rd party agreement
No upfront TSM integration
 Large choice of business models
No rental fees
User subsidized
You decide
 Differentiation
Full control the App and
the user experience
User’s Current Phone
Applets
YOUR BRAND
YOUR APP

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Fits Existing Business Process
9
Same distribution process
as for existing contactless
cards or tokens
smartSD memory cards can be distributed
PERSONALIZED
& TSM COMPATIBLE
• Postal/mail
• On-site issuance
And also memory card distribution
• Traditional retail peg packaging and more
Mobile App
JavaCard
Applet (TSM
or Local)

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Service Delivery Kept Simple
MNO Handset
Maker
RetailersService
Providers
Payment
Network
AWARENESS
Value propositions
for the end user I want to
get those
benefits
Download
Service
mobile App
Purchase
NFC HW or
use existing
one
Enjoy the
NFC‐
enabled
service
End user
journey
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END USER
KEY BENEFITS

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End User Benefits Summary
12
Instant
gratification
Easy to change
mobile
operators
Control apps
and applets
Extra storage
for PC, phones
tablets, etc.
Creates larger
ecosystem of
vendors
Easy to
upgrade a
mobile device

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CARD ISSUER
KEY BENEFITS

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Benefits for Card Issuers
•Business
Independence
•Larger reach:
•Any user
•Any phone
•Lower up‐front
cost
•Typical retail
model & revenue
•Opportunity for
new revenue
streams from
services
•Lower up‐front
cost for NFC
(Targeted users)
•Reach more
users and
possibly acquire
subscribers from
competition
•New TSM
opportunities
•Business
independence
•Large Reach
•Direct
relationship
Service
Providers
Retailers
Mobile
Operators
TSM
operators
Typical card issuers:
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CONSUMER
CENTRIC MODEL
&
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Consumer Centric Overview
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 End user control of Apps/Services
 Choice of Distribution channels and retailers
 No constraints.
Privacy .
& Data Security .
Digital Signature .
& non‐repudiation .
Online Access & .
Authentication .
Banking and
Payment
Transit & closed
systems
Physical access
control
Service
Providers
MNO
Handset
Maker
Perso
Bureau
Payment
Network
Wallet/OS
Developer
Retailers
And many more NFC servicesPlus many more token Apps

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Consumer Centric Model
A model focused on
creating value
for all parties
Versus controlling the secure
element to milk the service
providers and reduce churn
More
apps &
services
More
interest/
benefits
More
users
More
NFC HW
available
Lower
up‐front
costs
A
VIRTUOUS
SYSTEM
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Hardware Spec Available
Underlying Hardware Available
Smart microSD logo Available
Consumer Centric model Ongoing
App and Services Waiting for you to adopt
THANK
YOU
www.sdcard.org/developers/overview/ASSD/smartsd/
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www.sdcard.org