HCE. . . and Beyond - It's Not Just a Transaction

Paula Hunter, Executive Director, NFC Forum

HCE Summit: April 14, 2016, New York

HCE. . . AND BEYONDIT’S NOT JUST A TRANSACTION

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

THE NFC FORUM REPRESENTS


All of the world’s major:

● chip vendors

● payment service providers

● smart phone manufacturers

● mobile operating system providers

STRATEGIC FOCUS FOR 2016

4

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

SPONSOR MEMBERS

Advancing Near Field Communication Technology

PRINCIPAL MEMBERS

5

“AT” AFTER TRANSACTION – THEN WHAT?


NFC IS MORE THAN MOBILE PAYMENT

HealthcareTaking off!!

Retail Taking off

RemoteHealthcare

TransportTaking off!

AirlineTicket

PublicTransport

Ticket

Coupon and

Loyalty Programs

Consumer Electronics

Soaring!

One Touch to BT/WiFi

Automotive/Mobile Printing

Accessory / Wearable

PaymentTaking off

Credit / Debit

NFC DEVICES OPERATE IN 3 MODES

Card Emulation

8

Tag/Card Reader/Writer

Connect the world of

apps with the physical

world

Connect devices through

physical proximity

Connect to a common

infrastructure …3

2

1Peer to Peer

HOST CARD EMULATION: ACCESSING AN INFRASTRUCTURE OF ACCEPTANCE

9

Contactless is part of many peoples daily lives and

acceptance of contactless is pervasive• Retail Stores, Hotels, Corporations, …

• plus Laptops and other Consumer Electronic devices

HCE opens the door for developers to exploit the

infrastructure and deliver better user experiences

SECURITY OPTIONS FOR NFC DEVICESNFC FORUM SPECS ENABLE ALL OPTIONS

10

Conventional /silicon based approach Host Card Emulation /cloud, software approach

Stranded multi-technology security

Tokenization, one-time keys, time limited keys, software tamper resistance, cloud stored values, etc.

NFC

Device

Host

CPU

NFC

Controller

NFC

Reader

NFC

Host

CPU

NFC

Controller

NFC

Reader

Secure

Element

NFC

Device

NFC

Secure silicon centric security

Tamper resistant secure silicon (eSE, NFC-SIM) protects apps, values, keys, etc.

• Proven maturity in,• Deployments• Security certification

• eSE, NFC-SIM issues,• Ownership• Fragmentation

• Advantage• Less ownership issues• Less fragmentation

• Developing maturity• EMVCo deployments• No others, to date

• Specs and certification• EMVCo releases• No others to date

HCE ADVANTAGES

11

Open

Global

Software/Cloud solution

Scalable/Flexible

Security level optimization3

2

1

Runs on standard NFC Devices(Android, Windows, Blackberry)

Free from SE owner governance.You govern your own service.

Security level can be optimized to service requirements

HCE THE REAL CHALLENGE

12

Industry standardsGuidelines, specifications, certification for non-EMV use cases are not established

The Real Challenge

Establishing industry wide, Guidelines, Specs, Certificationthat are OPEN to anyone

Universal applicability across all handset platforms

MARKET DYNAMICS


TRANSPORTATION SERVICES


http://nfc-forum.org/agreement-reached-nfc-interoperability-with-contactless-public-transport-

infrastructures/

http://nfc-forum.org/agreement-reached-nfc-interoperability-with-contactless-public-transport-infrastructures/

NFC IN PUBLIC TRANSPORT GROWTH

15

● 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 three months:

Source: NFCWorld+

An estimated 1.5 billion boarding passes will be issued via

smartphone by 2019 – Source: Juniper ResearchConsumers are ready to use their phones!

http://www.juniperresearch.com/press/press-releases/1-in-3-airline-boarding-passes-issued-via-mobile

RETAIL SERVICES


SIX OPPORTUNITIES FOR RETAILERS AND BRAND OWNERS


17

Provide quick access to store

deals, Wi-Fi, loyalty and

rewards account

If your favorite retailer or

brand offered coupons and

discounts for connecting to

their store, how would you

prefer to connect your phone

to the store?

143%

25%

14%

17%

Using NFC Using QR Code

Using Bluetooth Beacon Using browserTotal sample size: 1,038



18

Quote from observational research:

“ NFC is the better option for accessing

information or deals – especially if the

QR code is on the wall or at an angle

that makes it difficult to scan. ”

Research participant

45% 32% 9%6%8%

0% 20% 40% 60% 80% 100%

Very interested Somewhat interested

Not sure Somewhat uninterested

Not at all interested



19

Deliver valued product

information, store inventory

insight

How interested are you in

accessing more product

information and store

inventory using NFC

technology when shopping at

your favorite retail shops?

2

Total sample size: 1,038



20

Provide simple and quick

access to related, contextual

product information


brand offered the ability to

get recipe ideas with

shopping lists related to a

product, how would you

prefer to access this

information on your phone at

the store?

350%

23%

10%

17%





21


“ NFC is really convenient

and there’s no downside. ”




22

Provide digital shopping cart

experience

How interested are you in

having the digital shopping

cart experience when

shopping at your favorite

retail shops?

436% 30% 13%8% 13%

0% 20% 40% 60% 80% 100%

Very interested Somewhat interested

Not sure Somewhat uninterested

Not at all interested


Inform decision making by

offering convenient access

to large item product

information



23


brand offered the ability to

get more information on

larger, higher-priced items,

how would you prefer to

access this information on

your phone at the store?

556%

23%

7%14%





24


“ I prefer NFC because I have my child

with me, and with the QR code I have

to take time to find the app and then

scan the barcode. ”




25

Offer ability to order correct

consumables (such as

printer ink and toner) from

home [post sale]6

If your favorite brand

offered the ability to order

parts/accessories in this way,

how would you prefer to

do this?

61%20%

19%

Using NFC Using QR Code Using browser


WHY NFC NOW FOR BRAND OWNERS AND RETAILERS?


26

SimplerMore

convenientFaster

Better

consumer

control over

the interaction

Why consumers prefer NFC:

THE INTERNET OF THINGS SERVICES ...


... AND THE CONNECTED CONSUMERAccording to IDC, IoT spending will top

$1.4 billion by 2019, Source: IDC

http://www.businesswire.com/news/home/20151210005089/en/Internet-Spending-Forecast-Reach-1.3-Trillion-2019

CONNECTED CONSUMER REQUIREMENTS


28

Easy

Network

Access and

Data Sharing

User Control

with

Expressed

Intent

Data

Security at

Multiple

Levels

Ability to

Connect the

Unconnected

Only NFC Provides:

EASY NETWORK ACCESS AND DATA SHARING BETWEENDEVICES


29

● No lengthy handshaking

● No user data entry required

● No additional user interface required

● Fast, error-free data sharing

USER CONTROL WITH EXPRESSED INTENT


30

● Simple, intuitive means of user intent to

initiate action

● Sure and consistent

● User options to set and enforce

preferred degree of control

DATA SECURITY AT MULTIPLE LEVELS


31

● Built-in features that limit

opportunities for eavesdropping,

man-in-the-middle attacks

● Easy-to-deploy options for

additional protections to match each

use case

● Tools to set and enforce security

preferences

Secure Element

App-Level Security

User Settings

Digital Certificates

Range Limit

THE ABILITY TO CONNECT THE UNCONNECTED


● 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

NFC TECHNOLOGY IS A 2 BILLION CLASS PLATFORM

33

● 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


BECOME A LEADER IN THE RAPIDLY GROWING NFC INDUSTRY

JOIN THE NFC FORUM!

http://nfc-forum.org/


THANK YOU!

Questions?
