NFC Presentation [Compatibility Mode]
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NFC enables contactless communication between devices like phones and readers. It uses radio frequency identification (RFID) to allow devices within 4 inches of each other to establish radio communication to exchange data. This technology is designed for applications like mobile payments, ticketing, and device pairing. NFC provides secure, convenient transactions by allowing users to simply tap their phone to a reader to complete a payment or share contact information.
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NFC Presentation [Compatibility Mode]
- 1. What is NFC? Designed for short distance communication (up to 100 cm) It’s a contactless card and a contactless reader in one chip It operates at 13.56 MHz It’s designed for low bandwidth (max speed is 424 kBaud) Applications aimed for are Ticketing Payment Device Pairing Short Range 13,56MHz RF Link
- 2. Some details we need to know… • There are dedicated roles – Initiator and Target – Any data transfer is a message and reply pair. Initiator Target Reply • There are dedicated modes of operation – Active and Passive – Active means the device generates an RF field – Passive means the device uses the RF field generated by the other device Message
- 3. Classification of Mobile Payments Based on Value Micro Payments Based on Charging method Based on Location Based on the validation of the tokens exchanged Macro Payments Mini Payments Proximity Payments Remote Payments Pre-paid Post-paid Online Payments Offline Payments (ex: e-coins in P2P transfers)
- 4. Enabling Mobile Technologies User Interface Platforms Security enablers Transport Short- range Long- range GSM GPRS RFID Bluetooth Infrared 3G SAT Java ME Java Card Voice SMS USSD WAPDual slot phones WPKI/ WIM SIM 4G NFC
- 5. Technology Challenges • Device Level • Application Level • Communication Level • User Level • Security Level • Standards Level • Consolidation Level
- 6. B. Present scenario •Credit card is a mode of payment that is an alternative to cash. •Credit card offers free credit, bears risk, and thus is an expensive payment mode. •The product design and promotions are such that the pricing is kept hidden and the users are oblivious of the fact that the cost is ultimately borne by them. •Debit card is another alternative to cash. •This mode of payment offers no credit, carries no or minimal risk. • It has still been priced at par with the credit card by the banks- a price someone pays.
- 7. •Costs of the debit/credit card system are passed on to the merchants who accept cards. •Such expenditures for the merchants can be as high as 50% of their profits. •There are three options for the merchant (three scenarios) – (i) If he is not allowed to surcharge; he passes this cost to his product price. The card (or even cash) user is not able to feel this hidden price adjustment upfront. (ii) If the merchant is allowed to surcharge or offer discounts for cash, the card user prefers to use cash instead, leading to an inefficient payment mode. (iii) The merchant decides not to incur additional expenses- Do not accept cards.
- 8. C. Drawbacks of the present system Oblique pricing structure treats and prices the credit and debit card in a similar manner. This has several drawbacks hindering its growth/popularity and even cause potential risk to users. We list few of the drawbacks. Under utilisation of debit cards: Though the number of debit cards is currently 16 times higher than the credit cards, the average number of transactions per debit card is 14 times less. Lower acceptability of cards by merchants: The merchant fees at POS for debit card swipes is a disincentive for small and medium merchants, who have less pricing power due to their low volumes, to transit to card based payments. With 6.3 lakh POS terminals, Debit and credit cards together account for only three card transactions per day per POS. Increase in cost of currency management: Card transactions at POS have been only about 6.5% of retail sales. This large cash dependence (93.5%) imposes huge pressures on currency management.
- 9. Reduces reserve base of the banking system: Stock of currency held outside of the banking system constitutes a potential source of unproductive economic resources because these cash stores are not available for credit expansion— thereby impeding monetary growth. Lack of accountability: Predominance of cash in retail sales leads to deterioration in business accountability as transaction tracking is not possible, it enables tax leakage, diminishes financial inclusion and enables existence of a parallel economy. Potential of fraud: There is greater risk attached to debit cardholders in case of fraud as cardholder is deprived of the money. Currently banks offer either pin-based or signature-based debit cards. As a lost or stolen debit card is useless without its PIN, consumers usually prefer pin-based debit cards.
- 10. •In order to address the issues of credit and debit card usage, we aim to a) estimate the share of cash and cards in retail sales. b) obtain the costs incurred by retailers for accepting cards (be it credit or debit cards) as against cash. c) determine retailers’ preference of accepting various modes of payment. d) establish whether credit and debit cards costs the same to merchants. e) understand how merchants account for MDR and their willingness to bear it. f) determine whether there is any indirect subsidization provided by cash consumers for card consumers. g) know whether the displayed selling price of goods could be reduced if merchants are allowed to surcharge. h) know merchants’ opinion on the effect of freedom to surcharge. i) know whether merchants prefer a ceiling on debit card fee or not.
- 11. Mobile Communication Architecture Mobile Stations Base Station Subsystem Exchange System Network Management Subscriber and terminal equipment databases BSC MSC VLR HLR EIR AUC OMC BTS BTS
- 12. Bank - A Bank -B Switching (NPCI) Settlement (CCIL) Interbank Mobile Payment Service (IMPS) Payer-X Payee- Y
- 13. User Level Challenges • Local language support on Mobiles • Generation of Transaction report • Mobile Application on Phone memory or SIM or memory card ? • Trace of transaction data or critical personal data : access by others • Mobile Wallet : risk of multiple cards in the device and value offload for cash exchange in local currency • Mobile based Financial Inclusion services • Complaint registration and Grievance resolution
- 14. 14 Merchant Acquirer Mobile OEM MNO Terminal Providers Merchant Wallet Providers Issuers TSM Vendors NFC Chip Consumer Payment Network Business process flow Technological Flow Entities in NFC Eco Sphere
- 15. BC Micro ATM ATM / Merchant PoS Bank A Bank B Switching (NPCI) Biometric Authentication ( UIDAI ) Settlement (CCIL) Customer Mobile based Financial Inclusion and Mobile Wallet
- 16. New Technology Multiple-application contactless smart cards Multiple-technology card readers “Smart” mobile phones NFC technology
- 17. Smart Cards • Secure • Versatile • Increased processing capacity • Secure • Versatile • Increased processing capacity Multiple-application, Non-Proprietary Contactless Card Platforms
- 19. Multi-tech Card Readers • 125 kHz, 13.56 MHz, magnetic stripe • Legacy card platforms can co-exist with new card technologies, allowing for thoughtful technology migrations. • 125 kHz, 13.56 MHz, magnetic stripe • Legacy card platforms can co-exist with new card technologies, allowing for thoughtful technology migrations. Readers that support Multiple Technology Card Platforms
- 20. Multi-tech Card Readers SUPPORT: 125 kHz 13.56 MHz Proximity Proxlite® Lenel® HID IClass® MIFARE MIFARE DESFIRE EV1® ST Micro® FIPS201
- 21. The newest reader technology allows proximity cards and secure smart cards (EV1,PIV, FIPS 201) to be read on the same reader, and even biometrics! The newest reader technology allows proximity cards and secure smart cards (EV1,PIV, FIPS 201) to be read on the same reader, and even biometrics! Multi-tech Card ReadersCK1
- 22. Slide 21 CK1 I don't think this is necessary in the PPT, but rather in the speech... What do you think? "Simple changes in firmware and/or software encoding to enable Multiple platforms to be read." Christa Kenny, 4/18/2012
- 23. New technologies, such as mobile phones, are being used for more everyday! They communicate to readers by RFID technology. Mobile Phones for ID! Smart mobile phones can be used for: • Unique Identification • Access Control; • Purchasing goods or services; • Receiving information; • And more… Smart mobile phones can be used for: • Unique Identification • Access Control; • Purchasing goods or services; • Receiving information; • And more…
- 24. Near-Field Communications -Short-range wireless RFID technology which uses low speed signals to allow two devices to automatically start communicating when they are close to one another. NFC Technology
- 25. THE TECHNOLOGY • NFC is “Near Field Communication” • Close proximity wireless technology • Fully standardized • Compatible with existing smart card infrastructure • Expected 2012 phone penetration 150M+ • Intuitive, super easy to use THE TECHNOLOGY • NFC is “Near Field Communication” • Close proximity wireless technology • Fully standardized • Compatible with existing smart card infrastructure • Expected 2012 phone penetration 150M+ • Intuitive, super easy to use What is NFC? ENABLES 3 USE CASES: • Discovery • Transactions • Exchange
- 26. • Offers / coupons • Directions • Mass transit schedules • Reviews/recommendations • On the spot services • Movie trailers • Social media updates • On the spot reviews “CHECK IN”“PICK UP” Touch to… learn more, get deals, be social... Discovery
- 27. • Speed • Convenience • Ease of use • Existing infrastructure • Multitasking • Mobile computing power • Rich user interface Transactions
- 28. • Person to Person: • Contact info, photos, songs, playlists • Social networking • Gaming • Machine to Machine: • Touch setup of BT or WiFi for easy pairing and sharing Exchange
- 29. • 2011 35+M phones on the market • 2012 150+M phones forecasted • 100+ different models • All handset makers • All regions NFC Market Status
- 30. Bringing ads & info to life… PAST • Visual experience TODAY • Rich, dimensional experience • Video • Sticky • Social Smart Posters and Objects Guide student journey
- 31. Attractive for brands & merchants Precise and trackable analytics • Are people engaging? • What is working? • Changing content Precise and trackable analytics • Are people engaging? • What is working? • Changing content
- 32. Personalized - Dynamic content engine - “Me Based Services” • Tailored content to me when I want it • Micro Opt-in - Dynamic content engine - “Me Based Services” • Tailored content to me when I want it • Micro Opt-in
- 33. Digitizing the physical campus – people, places and things NFC tags all over campus will enable… • Campus information services with a simple touch Campus maps, event information Class schedule, building/room schedules • Consumer friendly services around campus Retail, bars, restaurants – touch to get offers Check-in with your social media account with a tap Smart advertising Campus ROI opportunities • Easy connections to campus services Touch for easy WiFi setup Touch to print/copy, etc NFC on Campus
- 34. • NFC enabled phones for building and IT access Full over the air (OTA) management of credentials for NFC enabled phones NFC stickers for phones that do not have NFC Plug into existing infrastructure • Credentials on mobile phone for other services Event tickets Public transit pass Payment – closed loop at campus stores and vending machines, etc NFC on Campus continued
- 35. Where is this headed? TAGS EVERYWHERE!!! • Link between physical & digital worlds • Quick roll outs • Diverse uses • Behavior change TAGS EVERYWHERE!!! • Link between physical & digital worlds • Quick roll outs • Diverse uses • Behavior change
- 36. • Near Field Communication (NFC) technology makes life easier and more convenient for consumers around the world by making it simpler to make transactions, exchange digital content, and connect electronic devices with a touch. • A standards-based connectivity technology, NFC harmonizes today's • diverse Contactless technologies, enabling current and future solutions in • areas such as: • Access control • Consumer electronics • Healthcare • Information collection and exchange • Loyalty and coupons • Payments • Transport
- 37. OUR CAPABILITIES • Loyalty • National Identification • Driving License • Vehicle Registration • NFC Mobile Payments • Membership Card • Library Management System • Health Card • Prepaid Petro Card • Time & Attendance System • And Limitless Application n Tracking System
- 38. 37 Let us consider an example of a Merchandise purchase using a mobile device (smart phone) online. 1.The consumer browses for the best deal to buy few books online on a retail outlet’s website and sets up an alert to receive SMS on Online or Store sale and discount season. 2.He receives an SMS coupon for a cool deal on his favorite novels if purchased online that reads 20% cash back from the online store on which he had setup alerts. 3.He logs into the store’s online shopping portal using his smartphone and completes a purchase order. 4.He uses his credit card details (saved in his profile on the portal’s ‘My Profile’ page) to complete the payment transaction and just before submission he redeems 20% discount 5. He has now accomplished a payment transaction using the retailer’s mobile browser application. Differences B/w Regular mobile Payment Transaction Vs NFC Based Payments Transaction with an example Internet
- 39. Scenario/vision Seamless citizen experience with interoperable mobile solutions
- 40. Mobile NFC brings new services to the consumer Consumers Retail Transport Ticketing Government Other
- 41. A complex ecosystem involving many players NFC Banks Subscribers Trusted Service Managers Merchants Mobile Network Operators Handset Suppliers Electronic Pay- ments Networks UICC Suppliers Transport Operators Event Ticket Providers Standards Body Application Developers
- 42. 62 Operators Participating/supporting NFC Project 1. AT&T (Phase 2 co-lead, Phase 3 Lead) 2. KT (Phase 1 Lead, Phase 2 co-lead) 3. Astelit 4. Azerfon 5. Belgacom 6. Brazil Telecom 7. Celcom 8. China Unicom 9. Chunghwa Telecom 10. CMCC 11. CSL 12. Dialog 13. Digi 14. DST 15. Econet 16. EITC 17. Elisa 18. Etisalat 19. FarEasTone 20. GlobeTel 21. IMC Island 22. Kall 23. KDDI 24. KPN 25. Maxis 26. MCI 27. Meteor 28. MobiCom 29. Mobilkom Austria 30. Mobitel d.d. 31. MTN 32. MTS 33. NTT DOCOMO 34. Orange 35. Partner 36. Pelephone 37. Rogers 38. SFR 39. SINGTEL 40. SINGTEL OPTUS 41. SK Telecom 42. SMART 43. Softbank Mobile 44. Starhub 45. Swisscom 46. Taiwan Mobile 47. TDC 48. Telecom New Zealand 49. Telefonica-O2 50. Telenor 51. TeliaSonera 52. Telecom Italia 53. Telstra 54. Telus 55. Turkcell 56. T-Mobile 57. Verizon 58. Vimpelcom 59. Vodafone 60. Wataniya 61. Wind 62. Zain Over 20 NFC Pilots around the world
- 43. Era of Disruption New platforms & ecosystems Players Features 2+ years Time A paradigm shift in consumer commerce behaviour, driven by the emergence and ubiquitous acceptance of an alternative ecosystem Focus: New Ecosystem Era of Plastic Consolidated capabilities Era of Mobile New standards + applications Today - 2 years Value Proposition Emergence of new business models and value chains centered on the disintermediation of existing players Focus: New Platforms 1990s - today Traditional model, faced with increasing competitive, regulatory and market pressures Focus: Back-end Enabler New revenue model focused on layered VAS, marketing, and data analytics Changing cost and revenue margins due to regulatory shifts NFC is part of a larger shift in market models and consumer behaviour
- 44. My bank in my pocket Quick and simple payments Transfer money immediately to friends and family No need to carry cash or look for an ATM Real time statement of payments Payments linked directly to loyalty schemes Peace of mind My life in control Convenience Efficiency Mobile NFC will enable simple transactions and a range of bank services on the phone
- 45. Mobile NFC has the potential to transform the airport experience Simplify today's mobile experience More than 70% of passenger would like to use mobile for check-in and boarding * Between 2% and 3% succeed* * SITA 2011 Passenger Survey Automatic check In Self-service bag drop Security check Coupons for retailers Lounge access Boarding the plane Mobile NFC used throughout the airport journey
- 46. The successful launch in Nice was a 1st for Europe All three mobile operators have participated Customer acquisition through ‘standard’ channels Full range of services 9 cities now plan to deploy mobile NFC services
- 48. THANK YOU 4 YOUR TIME Presentation Made By khaledhasan@gmail.com +8801713121116