The document summarizes transport and ticketing trends in Asia, including:
1) Mobile ticketing is growing, with 46 cities currently using NFC and 32 more planning to adopt it, led by Asia Pacific and Europe.
2) The NFC market is projected to grow to $47-50 billion by 2025 from $9.5-10 billion currently.
3) Factors driving adoption of NFC ticketing include big data analytics, growth of mobility as a service (MaaS), and increasing smartphone usage in Asia Pacific and globally.
4) Asia Pacific is expected to contribute significantly to new smartphone users between 2017-2025, led by India, China and other countries, increasing
3. WELCOME TO TODAY’S SPEAKERS
3
Sadiq Mohammed
Vice President
EMV and Digital Devices,
Mastercard
Satoshi Shibata
Assistant Manager,
JR East
Manoj Sugathan
Head of Chip,
Contactless and Urban Mobility,
Visa Asia Pacific
Goh Say Yeow
Vice President
Head of Digital Security Solutions
Asia Pacific, Infineon Technologies
Matt Bright
Retail & Payment SIG
Chair, NFC Forum
Silvester Prakasam
LTA Singapore
Koichi Tagawa
Chairman,
NFC Forum
Bjoern Scharfen
Senior Director,
Head of Product Line
Payment & Ticketing
Solutions
Infineon Technologies
Preeti Ohri Khemani
Mobility, Identity and Transport
SIG Chair,
NFC Forum
Mike McCamon
Executive Director,
NFC Forum
4. AGENDA
MC: PREETI OHRI KHEMANI
4
12:30 Registration
1:00 – 1:05 Welcome | Koichi Tagawa, Chairman, NFC Forum
1:05 – 1:20 Mobility, Identity, Transport and Payment Market Overview | Preeti Ohri Khemani MIT SIG Chair, NFC Forum
1:20 – 1:40 NFC Beyond Mobile | Goh Say Yeow, Vice President, Head of Digital Security Solutions Asia Pacific, Infineon Technologies Asia Pacific Pte Ltd
1:40 – 2:00 Transport and Ticketing Trends and Outlook in Asia | Namrta Bangia, Director, Global Mass Transit
2:00 – 2:20 Evolution of Account-based Ticketing | Silvester Prakasam, Senior Advisor Fare Systems, LTA Singapore
2:20 – 2:40 An Application for Multi-Product of Public Transport in Tokyo | Satoshi Shibata, Assistant Manager, JR East
2:40 – 3:00 Break
3:00 – 3:20 Driving EMV payments in Urban Mobility Solutions | Sadiq Mohammed, Vice President, EMV and Digital Devices, Mastercard
3:20 – 3:40 The Future of Commerce – Transit | Manoj Sugathan, Senior Director, Chip, Contactless and Urban Mobility, Visa Asia Pacific
3:40 – 4:10 Show & Tell: NFC Demos | Moderated by Bjoern Scharfen, Senior Director Payment and Ticketing Product Line. Infineon Technologies
4:10 – 5:00 Panel: NFC in Payment and Transport | Moderated by Matt Bright, Retail & Payment SIG Chair, NFC Forum
5:00 – 5:15 Closing Remarks | Mike McCamon, Executive Director, NFC Forum
5:15 – 7:00 Networking Reception
5. ENGAGE
● Go to
https://pigeonhole.at/NFC2019
● Enter the Q&A to submit
questions
Type in your question
Add up to two tags
Ask!
● Build the NFC Word Cloud
● Share your feedback by taking our
event survey
5
6. PANEL: NFC IN PAYMENT AND TRANSPORT
Submit your question and tag ‘Panel’: https://pigeonhole.at/NFC2019
Sadiq Mohammed
Vice President
EMV and Digital Devices,
Mastercard
Silvester Prakasam
Senior Advisor Fare
Systems, LTA Singapore
Manoj Sugathan
Head of Chip,
Contactless and Urban Mobility,
Visa Asia Pacific
Matt Bright
Retail & Payment SIG
Chair, NFC Forum
MODERATOR PANELISTS
Bjoern Scharfen
Senior Director Payment and
Ticketing Product Line. Infineon
Technologies
7. THE NFC FORUM AT A GLANCE
7
The NFC Forum has 130+ member organizations
and is the world's leading standards and advocacy
association for Near Field Communication (NFC)
technology.
8. NFC FORUM: DRIVING NFC FORWARD ON ALL FRONTS
8
• 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
9. NFC FORUM CELEBRATES 15 YEARS OF SUCCESS
9
Since 2004 the NFC Forum has led the effort to
expand the adoption of Near Field
Communication technology around the world.
In 2019 we celebrate our 15th anniversary and
look forward to more NFC innovation and
growth in the years to come.
Visit the NFC Forum 15th Anniversary web page
10. LET’S GET SOCIAL
● Throughout VISIONFC we encourage
you to share your key takeaways and
photos on social media
● When sharing, use hashtag
#VISIONFC or #NFCFORUM
10
#VISIONFC
or
#NFCFORUM
@nfcforum
11. Preeti Ohri Khemani
NFC Forum Vice Chairman & MIT SIG Chair
11
Mobility, Identity, Transport and Payment
Market Overview
16. Key market trends
NFC deployment is the most prevalent
in transport and payment applications
Increasing trend towards the usage of
a mobile phone for card emulation in
Transport Ticketing
NFC enables smart phones to be used
not only for communication purposes
but also as a transaction tool
NFC as a one-touch
connection for
transport and payment
applications
19
17. NFC ecosystem
across a variety of
applications
Payment Info Sharing eTicketing Peer to Peer
NFC enables new
services and offers
new convenience
factors
Different form
factors
SIM
(UICC/eUICC)
Secure Element
Embedded
Secure
Element
Dual
Interface (DIF) chip with
flexible antenna
μSD Card NFC Tags
17
20
19. Transport Ticketing
expected to grow
driven by migration to
microcontrollers based
solutions Source: ABI Secure Smart Cards and Embedded Secure ICs, Q3 2019
Transport
microcontroller and
memory market
[Million USD]
2019 2024
182
211
CAGR
+3%
19
22
20. NFC in MaaS enables
account & card based
ticketing fully compliant
to Open Standards
The Future
of MIT
Limited Use Tickets For seasonal cards
For multi
application cards
NFC mobile devices/
wearables
Based on Open Standards
20
23
21. Registration
• Grants access to all
individual services
• Only completed once
Journey planning
• Provides list of service
offering
• Combines optimal use
of transport modes
based on
selection
Booking
• User decides on
service to purchase
• MaaS operator issues
necessary
travel documents
• MaaS operator
informs service
provider so they
provide capacity
Payment
• PAYG or monthly
subscription
• User financial
transaction and
revenue sharing
Journey
• MaaS operator
ensures service
is delivered
• MaaS operator
provides data
feed: delays,
routing changes
…
MaaS as a process
for a convenient
user experience
21
24
22. Today’s consumer
world is …
Trust and
convenience drive
everything
Global
On-demand
Ubiquitous
Digital
22
25
23. JOIN THE MOBILITY, IDENTITY AND TRANSPORT AND
RETAIL AND PAYMENT SIGS!
23
24. Goh Say Yeow
Vice President, Head of Digital Security Solutions Asia Pacific,
Infineon Technologies Asia Pacific Pte Ltd.
24
NFC Beyond Mobile
25. Goh Say Yeow
Vice President, Digital Security Solutions
Infineon Technologies Asia Pacific Pte Ltd
Founding Member
of the
Sponsor Member
of the
- restricted -
62. An Application
for Multi-Product of Public transport in
Tokyo,
~Migration from classical public transport to the MaaS
platform~
05. 11. 2019, Singapore
East Japan Railway Company (JR East)
Satoshi Shibata
63. Agenda
• Overview of JR-East and Suica
• Multi-product on one single mobile NFC device
• Our future work – Mobility as a Service
64. Overview of JR East
64
*Numbers are as of FY ended 31 March , 2019
$1 =110JPY
The Greater Tokyo Area,
said having 40 million people
Network: 7,457 km
No. of Trains: 12,229 /day
No. of Passengers: 17.5 million /day
(the largest in the world)
Operating Revenue: $ 16.7 billion
No. of Employees: 56,450
High-Speed Metropolitan Regional
Suica in circulation: more than 70 million
66. Multi-Product on one single medium
All kind of public transport products must be covered by one single medium.
• One-way ticket (Regular / Children)
• Commuter pass (Regular / Student / Children)
• Seating service ticket on commuter trains
• One-day Zone ticket (Regular / Children)
• Bullet train ticket (Regular / Children)
• Bus ticket, including reward program (Regular / Children)
*Only “exiting fare gate” requires deduction of value.
*Some products must be offered even if there is no network. 66
67. Combinations for a trip including multi products
67
Commuter Pass
Fare Gate
Shinjuku Shibuya
157 JPY 157 JPY
198 JPY
OsakiIkebukuro
Commuter Pass
Shinjuku Shibuya
157 JPY
Osaki
Combination of Commuter pass & PAYG
Best rate fare collection
68. What realized by NFC technology
68
Kanto Regional Transit
Bullet Train
Media centric FMSMedia centric FMS
Kansai Regional Transit
Back office centric FMS
Single mobile NFC device
The interoperation between media centric FMSs and back office centric
FMSs has been realized.
Fare Gate
FMS: Fare Management System
70. What we will do in near future
70
Home Station Station Station Destination
Bus
Stop
Primary Transportation Secondary/tertiary Transportation
Car/Bicycle/Walking Commuter Shinkansen Bus/Taxi/Walking etc..
Secondary/tertiary Transportation
Connecting each transport service seamlessly by using NFC is what we will do.
Mobility-related ID management would be essential for MaaS.
Mobility-
related ID
Ringo Pass: JRE’s MaaS platform smartphone app
71. Summary
• NFC technology has been the significant function while we
developed the FMS infrastructure.
• Existing infrastructure has to be considered to migrate for the
MaaS concept.
• Integration of mode of transportations will be done by transport-
owned Identities.
• JR East will support MIT SIG & NFC Forum by sharing our
experience.
71
72. Manoj Sugathan
Head of Chip, Contactless and Urban Mobility, Visa
72
The Future of Commerce - Transit
86. | Presentation Title | Month XX, Year86
Contactless86 Visa Confidential
Digital Payments using contactless technology
Contactless technology is proven to be a cash-displacement tool
Fast
No need for PIN or
signature for everyday
low-tickets purchases
Convenient
Consumers prefer contactless
cards because of its convenience
Secure
Same security as a
chip card
Innovative
Stepping stone to
digital transformation
90. | Presentation Title | Month XX, Year90
Contactless90 Visa Confidential
Leave home Pay toll
Grab a coffee
Lunch Board the train
Back on the train
Grab a snack Pick up the car Home again
Park the car
A day in the life of a smart city resident
93. Panel: NFC in Payment and Transport
Moderated by: Matt Bright, Retail & Payment SIG
Chair, NFC Forum
93
94. PANEL: NFC IN PAYMENT AND TRANSPORT
Submit your question and tag ‘Panel’: https://pigeonhole.at/NFC2019
Sadiq Mohammed
Vice President
EMV and Digital Devices,
Mastercard
Silvester Prakasam
Senior Advisor Fare
Systems, LTA Singapore
Manoj Sugathan
Head of Chip,
Contactless and Urban Mobility,
Visa Asia Pacific
Matt Bright
Retail & Payment SIG
Chair, NFC Forum
MODERATOR PANELISTS
Bjoern Scharfen
Senior Director Payment and
Ticketing Product Line. Infineon
Technologies
98. THANK YOU TO THE R&P AND MIT SIG LEADERS FOR
ORGANIZING TODAY’S VISIONFC EVENT 98
Matt Bright, R&P SIG Chair
Preeti Ohri Khemani, MIT SIG Chair
Patti Morin, Project Manager
99. THANK YOU TO TODAY’S SPEAKERS
99
Sadiq Mohammed
Vice President
EMV and Digital Devices,
Mastercard
Satoshi Shibata
Assistant Manager,
JR East
Manoj Sugathan
Head of Chip,
Contactless and Urban Mobility,
Visa Asia Pacific
Goh Say Yeow
Vice President
Head of Digital Security Solutions
Asia Pacific, Infineon Technologies
Matt Bright
Retail & Payment SIG
Chair, NFC Forum
Silvester Prakasam
LTA Singapore
Koichi Tagawa
Chairman,
NFC Forum
Bjoern Scharfen
Head of Product Line,
Infineon Technologies
Preeti Ohri Khemani
Mobility, Identity and Transport
SIG Chair,
NFC Forum
100. HOW MANY PHONES AND DEVICES
ARE IN THE WORLD TODAY? 100
According to Statista
SMARTPHONE USERS IN THE WORLD
3.3 billion
5.13 billion
According to GSMA
MOBILE DEVICES USERS IN THE WORLD
35.13%
66.53%
101. SIZING THE NEAR-TERM OPPORTUNITY FOR NFC
2 BILLION
NFC-enabled
devices in use
Almost a quarter of the
world’s population will have
access to NFC by 2020¹.
36 BILLION
IoT Devices
Four for every person on the
planet – will need
commissioning, connection
and control by 2020².
>4 Billion
Cards
>75% are contactless
High number of
terminals worldwide
Source 1: IHS Source 2: Gartner
101
102. AN NFC-ENABLED WORLD
WIDE-RANGING USER EXPERIENCES - NFC IS EVERYWHERE
Access
Connected
Car Connected
Home
Smart
Manu-
facturing
Smart
Mobility
Payment
Marketing
Graphic provided by NXP
102
103. LEARN MORE ABOUT NFC
103
Visit the NFC Forum Website and
LinkedIn, Twitter and Facebook
Today’s VISIONFC Payment and Transport Summit was made possible, in part, by the generosity of our sponsor . . .Infineon! Let me extend a special thank you from the NFC Forum to Infineon.
Here is an overview of today’s speakers. As you can see, we have a distinguished group of presenters and I’d like to personally thank each and every one of them for taking the time to share their wisdom with us today.
The non-profit NFC Forum is the world’s leading standards and advocacy association for NFC Technology. We have approximately 130 members worldwide both B2B and B2C. Many of which you know like these. We also have a good mix of startups and other innovative companies that you might not of heard of – yet.
The NFC Forum creates the technical specifications and standards that drive NFC innovation in key areas like UX. We focus our activities in the retail, public transportation, automobile and IoT markets. See me today if you’d like to know how you can get involved in our work.
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. Join today!
The NFC Forum is made up of the Technical Committee, Compliance Committee and Special Interest Groups; Automotive, Internet of Things, Mobility, Identity and Transport (MIT) and Retail and Payment (R&P). These groups are actively working to advance Near Field Communication technology and enhance the user experience.
In 2019 we celebrate the 15 Year Anniversary of the NFC Forum and we look forward to innovation and growth in the years to come! Visit the NFC Forum 15th anniversary web page to check out pictures and videos from the last 15 years!
Don’t forget to share your key takeaways from today’s VISIONFC event on social media!
1) Year after year, and it has been more than 10 years, analysts around the world predicted an explosive NFC growth
It was said the the advent of Automated Fare Collection systems with growing availability of NFC Smartphones, mobile NFC would take off in an explosive manner
Mobile phones has evolved from being big, to small and the trend now is back towards big, driver by the appreciation of bigger screen size
As the NFC feature in smartphones penetration increases, so was the expectation of NFC to takeoff
NFC RFID Charles Walton patented 1983
2019: Google offers transit cards on Google Pay in cooperation with Cubic
Why is that? Let‘s take a look at a couple of challenges that held back the success of mobile NFC payments
The success for any technology to be successful lies with the willingness of the user to adopt and use.
Users’ experience and confidence play the two utmost key in the willingness to try and continue using the technology.
To ensure this, multiple aspects has to be in place:
A guiding standard for industry players to ensure interoperability
Common goals of players to come to this target which leads to the cooperation of players to jointly adopt the guiding standard
Availability of supporting infrastructure to allow the practice of the technology
SECURITY to ensure users feel safe with the technology
Education of not only the users but also at the POS (retailers/cashiers)
Timely and minimal hiccups during the transition to a new technology
Ease of use
Let’s zoom into 3 major causes that hindered mobile NFC over the years
Who is going to own it?
Apple having a major market share especially with urban population where developed transportation services exist, was very careful on allowing full access to their NFC on the iPhones
The lack and limited functionality of mobile NFC access hindered the experience and growth
Even if all NFC mobiles are certified to the Analog 2.0 there are still issues with the existing legacy infrastructure
This basically means the old readers that are not even ISO compliant exists and needs to be changed out. The cost of upgrading the older readers are one of the key reasons infrastructure lack behind the availability of mobile phone
China (Alipay/WeChat Pay) start QR in late 2011, adoption rate: Globally, 4% of all consumer transactions are via QR Codes. This is according to a survey by Kleiner Perkins Caufield & Byers, Visa Inc., and GfK.
While the eSE technology struggled for the defacto spot, China had a need for a payment solution
QR code adoption is successful in China (goes hand in hand with the growth of WeChat and Alipay)
Security is less of a concern as the model is about someone paying instead of having their wallets being deducted
Due to timeliness and infrastructure maturity, QR was right there and then for the unbanked people in China. It took off like a dream and today is in the blood of the Chinese
Mobile NFC in transit is growing, however the take up rate is still way below of being domineering
Most reports and shared presentations indicate if one can achieve 20% of total transactions via mobile, that would already be considered successful
QR took a much shorter time to achieve notable success
QR is so easy to use. If you use a smart phone camera and point at the code. You should be able to decrypt the message “QR is easy to implement, but it is NOT SECURE..”
Every Smartphone even white label phones is capable of reading a QR (as simple as that) . In contrary, not all smartphones come with NFC, and even if they do so they have infrastructure compatibility issues.
For mobile NFC to take off, it is imperative the end user has tried it and would want to use it again
Many preached about the good things about new technologies enhancing the user experience, but there were not much highlights on how a bad experience could ruin it
NFC phones working well in a system is a very critical role in the future success of NFC in Transit
Counting on 1 or a couple of individual strongholds to enable pockets of successful projects around the world will not drive a large scale success within a short time frame
•The next big opportunity for NFC to ride on is the IOT wave, however this is another long journey before it peaks
•To keep NFC in the upward momentum, we should look beyond mobile
During this interim, what else
IoT is the next wave
What can we do beyond mobile phones today?
What NFC can but QR cannot serve. Ie. QR cannot be deployed everywhere
Deploy more form factors for NFC which QR cannot serve.
The contactless accessories and wearables mass deployment will drive NFC infrastructure to the next level, ensuring growth and sustainability. Ready to take on the IoT wave
Mobile NFC in Transit will not happen overnight
Apple could be a game changer
Instead of “No Bloody Clue”, always remember, the Customer’s Experience is utmost important
Not only for JR East but also NFC Forum =>MaaS
“Multi product of public transport”
In Japan, children under 12 years old can take public transport with half amount of regular fare.
And the rule would adopt for all other kinds of our products.
It makes the number of our product more than double.
I missed to add the categories of “senior” and “handy-capped persons”
As the result of the number of entitlements, we would have a hundred of number of products.
On-line connection => Bus
200ms transaction
Here is examples of what we are doing.
Thanks to NFC technology
Existing FMS must be integrated into MaaS concept
The key for the integration must be transport-owned, mobility-related IDs
JR East will keep working for support
We are experiencing the next urban migration
By 2050, 68% of the world’s population will live in an urban environment*
The number of “megacities” (population >10 million) will grow from 33 today to 50 by 2050
We are spending more time in our daily travel
People’s personal behaviour is changing
A move from ownership to shared economy
It’s more important now than ever that cities address the growing population and the increased pressure on infrastructure
Cities are the engine of any economy – today, 23 megacities drive 10% of global growth
80% of R&D of the top 5 Silicon Valley companies are focused on solutions for urban environments
By making transportation more efficient, cities are unlocking growth in economic output, regardless of population size
Improving transportation systems of all cities (not just the mega ones), can have a dramatic impact on quality of life
This second wave of urban migration shows the huge importance of developing infrastructure to provide urban dwellers with the resources and everyday services they need.
There is already significant pressure on roads and mass transit systems across the world.
Many cities are seeing congestion, overcrowding and major problems when a piece of infrastructure, however minor, fails.
In cities throughout the world, transportation infrastructure is stretched to capacity, and sometimes beyond.
So how can Visa help the Future City?
From our research, we see 6 key challenge areas for fully integrated, customer centric future transit
Just as with mass transit where Visa is in the near-unique position of being a partner to the key elements of the ecosystem, so we believe we are also for Mobility as a Service.
The future for mass transit systems in cities should be an exciting one.
Technology is likely to play a major role in improving the experience of seamlessly using the networks of buses, trams and subterranean railways – to make these systems something that people are able to tolerate, or even enjoy, at the best price.
Visa’s Mass Transit Transaction framework has enabled fantastic change and improvement.
With contactless now live in so many cities, customers want the same great experience for their whole journey – whether catching the bus, paying for parking or taking a cab.
When customers are able to do this, it allows cities to have the data insights for their whole customer journey to plan their cities better. Public and private enterprise can work together, and deliver better cities for people to live in.
Each transport provider has a different set of systems and operations, meaning that it is difficult to bring together payment and ticketing.
Providers have to set up their own payment methods
Aggregators are stitching together a messy two-stage process
Sign-up and verification steps acts as a large barrier to purchase and ridership
Fare enforcement can be difficult
To purchase a ticket a concession must present their identification in person despite an influx of digital payment and ticketing solutions.
Tap to pay is ‘business as usual’ around the world – and adoption continues to accelerate from year-to-year. Some notable highlights are displayed on the coming slides, but when you exclude the US, globally 1 in 2 transactions are done with a tap.
10 years back when Visa introduced its contactless payment solution (Visa payWave), our vision to support the smart city resident was as follows. We are happy to report that this vision is today realised around the world. Every one of these aspects shown here have come to life. In India too, we have strong implementations of most of these use cases.
So where do we see opportunities for Visa to participate or facilitate in the Smart City of the future
Over the last decade, a plethora of services have emerged that focus on how the consumer navigates throughout a city.
These services help move people in more efficient ways and are built upon frameworks/networks that are highly adaptable.
Further, many of these services will look to automation & autonomy to update existing offerings to define new consumer experiences.
Today’s VISIONFC Payment and Transport Summit was made possible, in part, by the generosity of our sponsor . . .Infineon! Let me extend a special thank you from the NFC Forum to Infineon.
Here is an overview of today’s speakers. As you can see, we have a distinguished group of presenters and I’d like to personally thank each and every one of them for taking the time to share their wisdom with us today.
Not all smartphones have NFC – yet. But we are working on it! Mobile devices surpass smartphones, i.e. wearables, etc. the population is increasing connected and with that connection enables easier Payment and Transport.
Mobile device growth is not slowing down.
Users already have NFC devices in the palm of their hands.
Next year, a quarter of the people on the planet – two billion people -- will have an NFC-enabled device and they probably don’t even know it. Or how to use it.
Although it is one of the “big three” consumer technologies, along with Wi-Fi and Bluetooth, it is the least understood and similtanousely one of the most proflic technologies in the world.
Approximately every second 64 NFC-enabled devices are produced. These devices are usually smartphones because NFC is standard on smartphones.
Today we focused on mobility and payment. I realize that there is more than enough going on in those segments to occupy us for some time. But it would be amiss of me not to mention that NFC is truly becoming more and more pervasive every day. The NFC Forum and its members are at the front of a widescale change in the way people live, work and play.
NFC is about convenience and simplification of a connected lifestyle.
Our mission going forward is to enhance and grow the user experience with NFC, however it is used.
I encourage you to explore our redesigned website, download a white paper, read a blog or better yet contribute a blog. We’d love to hear you!
Thank you for your time and attention. It is greatly appreciated.
I hope I see some of you again this summer at the Olympics here in Japan. Maybe we can meet again to assess the success of the government’s “Cashless Japan” program?
I think both EMVCo and the NFC Forum have a lot to add to the discussion and a joint meeting or presentation would be a fruitful exercise.
Key Takeaways:
Mobile and smartphone importance and use is growing quickly every day and NFC is uniquely positioned to be a key enabler for solutions.
NFC Forum and EMVCo are partners
We can work together on certification, payments and beyond payment.
We’d like EMVCo’s feedback on the money transfer specification.