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Mobile Payments
Smart Card Alliance / NFC Forum Joint Workshop
2010 Smart Card Alliance Annual Conference
Building the NFC Ecosystem
Peter Preuss Nokia
Chairman, NFC Forum Marketing Committee
Cooperation is Key to Success
NFC is seen as a complex ecosystem when it comes to payment and ticketing – New services – New opportunities – Intersection of multiple industries → prime example for horizontal
convergence
NFC deployment will be service driven, not a technology push.
Building the NFC ecosystem for payment and ticketing requires cooperation among the stakeholders.
NFC outside payment and ticketing is less complex.
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The NFC Ecosystem Seems Broad and Complex
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NFC Core Applications
NFC Transactions
• Set up wireless home office connections
• Access buildings and events
• Touch your camera to a printer to print
• Read smart posters • Share business cards
• Pay for goods and services
• Buy transit tickets, and access trains, planes, etc.
Mobile Payment and Ticketing
Secure applications in combination with Smart Card Technology
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NFC Connect
Data transfer between devices
NFC Access
Access info on-the-move
Battery-less tags
The Players to Set Up a Payment Service
Those directly involved in the system's technical support and development usually include: – A systems integrator to oversee a smooth installation and
provide overall technical coordination – A customized software provider to upgrade existing
infrastructure and include security key management – A personalization entity to provide the initial application and
any personal security required – A handset manufacturer to provide NFC-enabled phones and a
distributor to sell or rent out the phones – Tag manufacturers to provide NFC Forum-compliant smart tags
for posters – Internet service providers to build and maintain the
applications that provide pertinent consumer information over the air to the NFC-enabled phones
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The Players to Set Up a Payment Service (continued)
Those directly involved in the system's technical support and development will usually include: – A Mobile Network provider to ensure effective communications
between devices and their supporting infrastructure. They will also often be the provider of the USIM on the NFC-enabled phone.
– SIM manufacturers to provide the needed SIM cards to store ticket applications
– A Trusted Service Manager (TSM) to control security of the applications, data files, and associated security keys that have been downloaded to the secure element on the NFC-enabled phone
– An over-the-air service provider to download tickets, pay-as-you-go stored value, new applications, etc. (most often the mobile operator or TSM)
– A reader manufacturer/distributor to ensure that any existing contactless infrastructure is ready to interface with NFC-enabled phones and that, where appropriate, NFC functionality is added to these readers
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Non-Technical Players to Set Up a Payment Service
Outside of the technical implementation, other entities that may be included in any NFC project include: – Advertising agencies to plan smart poster promotions
and educate consumers about the new services available – Payment card schemes and issuing banks that will
supply the contactless applications and supporting systems for NFC payments
– Vending machine makers that may need to upgrade readers to accept contactless payments
– Others who also accept payment via an NFC-enabled phone and may participate in joint promotions
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Beyond Payment
Proximity payment is one method of NFC interaction. NFC usage needs to be part of a wider set of services
within the banking and retail sectors: – Remote and proximity payments / money transfer – Payment at POS, payment at gates, payment via direct debit,
payment by identification – Information services
Payment is the last step of a purchase experience driven by information services, loyalty, and advertising
Other applications and uses of NFC will help build the consumer and business experience faster for payment
Other devices using NFC besides mobile phones will also help drive adoption
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NFC Core Applications
NFC Transactions
• Set up wireless home office connections
• Access buildings and events
• Touch your camera to a printer to print
• Read smart posters • Share business cards
• Pay for goods and services
• Buy transit tickets, and access trains, planes, etc.
Mobile Payment and Ticketing
Secure applications in combination with Smart Card Technology
9
NFC Connect
Data transfer between devices
NFC Access
Access info on-the-move
Battery-less tags
The Players in an NFC Service without Payment and Ticketing
Those directly involved in the system's technical support and development will usually include: – A systems integrator to oversee a smooth installation and
provide overall technical coordination (if needed) – A handset manufacturer to provide NFC-enabled phones
and a distributor to sell or rent out the phones – Tag manufacturers to provide NFC Forum-compliant
smart tags for posters – Internet service providers to build and maintain the
applications that provide pertinent consumer information over the air to the NFC-enabled phones
– Advertising agencies to plan smart poster promotions and educate consumers about the new services available
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NFC Grows from Two Sides
• Enables new partnerships
• Potential for new revenue streams
• Separate secure element required
• Application management needed
• Simple implementation
• Simple value chain
• No separate secure element needed
NFC grows from both directions!
NFC without Secure Element
Payment
NFC with Secure Element
Ticke-ng
Creates stickiness and business value
NFC Connect NFC Access
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Peter Preuss Chairman, NFC Forum Marketing Committee
[email protected] +49 15115139484 www.nfc-forum.org
