near field communication

Near Field Communication: Google Wallet

Sourav | Rohith | Sanjay | Vaibhav

Section ‘A’ Group 12

April 12, 20232

Agenda Introduction to NFC Introduction to Google Wallet Technical Challenges Google Wallet Ecosystem and Implications Implementation in developing economies like

India Conclusion

IIM Lucknow

April 12, 2023IIM Lucknow3

Introduction to NFC


Introduction to NFCWireless technology

operates on short ranges

Communications b/w devices that

Touch each other Momentarily held close together.

Cell Phone can be used as Travel pass, event ticket , office pass Pay for goods in a store Interact with outdoor media

Placing the device near to an NFC terminal (reader). Works in a similar way to contactless smartcards used for travel in some cities or to access workplaces.


The Technology

Open platform technology Approved as an ISO/IEC global standard in December 2003

Based on Radio Frequency Identification (RFID) technology and operates at 13.56 MHz on ISO/IEC 18000-3 air interface and at rates ranging from 106 kbit/s to 848 kbit/s.

It works via magnetic field induction and operates on an unlicensed radio frequency band.

Two things are required: Tags and Reader.

“Tags” embedded within Readers Read and Process Data

The technology enables such devices that are held together to share information either in one direction or both


Benefits and Capabilities

Intuitive Interactivity the interactions involving

NFC enabled devices require no more than a simple touch

Versatile, Open and Standards-Based

can be easily deployed in a large range of industries,

environments and applications

Variety of Use from payment for goods to ticketing and from pairing

devices to sharing information or discovering new services

Security it is possible to build multiple levels of security into an NFC

enabled device.

Remote management Multi-application use is

supported by the NFC Mobile Phones and the addition of a

mobile network enables application management

Access control – identity

management

Consumer electronic

s

Healthcare -

service discovery

Information

collection and

exchange – file

sharing

Loyalty and

coupons – payments

and

Payments – identity management and business process

Transport – ticketing

and payments


Comparison with Sony FelicA

Felica uses proprietary command protocol than NFC, on JIS-X 6913 standard as compared to NFC which is based on ISO-14443A standards

The lower level and framing protocols are similar in both of them. Data can be transmitted at higher speeds using the FeliCa variation, either 212kBps or 424kBps

as compared to the NFC which has typical speeds of 106 kBps. The different command protocol technology in Felica tags enables deployment of proprietary

authentication and encryption in communication messages. Felica tags are based on Type 3 standardsof tags which are costlier than other types of Tags ( 1

and 2 types are usually used in NFC).


Google Wallet


Google Wallet – What it is Google Wallet

a mobile payment system which allows users to use their smart phones to pay at various merchant’s store

Payments, offers, loyalty, and much more

Currently available only on Sprint Nexus 4G handset

Supported cards Citi® MasterCard® credit card Google Prepaid Card


Google Wallet


Google Wallet – Partners & Merchants Issuing bank - Citi Payment Network - Mastercard Merchant processing and Trusted Service

Manager First Data

Mobile Operators - Sprint Technology partners

Point of sale - VeriFone, ViVOtech, Hypercom, Ingenico

Semiconductor – NXP Single Tap – Subway, The Container Store,

Macy’s Tap & Pay – Coca-Cola, CVS Pharmacy, etc Android App to locate merchants


Google Offers Attractive deals from local merchants Offer email based on area of choice Offers can also be searched on various

Google products like Google Search, Maps, Latitude, and Shopper


Google Wallet - Security PIN

Reject weak PIN like “1234” Phone Lock Secure Element chip

Only Trusted Service Manager (First Data) has the key to access data

Secure data transmission Follows PCI-DSS (Payment Card Industry

– Data Security Standards) Deactivation on entering invalid pin

several times Secure Element chip non-identifiable

in idle situation Stolen Phone Deactivation


Technical Challenges


Mobile Viruses

Due to open nature of OS, Android market infested with viruses

Can spread easily from mobiles


Mobile Viruses

Payment Information on isolated memory on separate chip

No access to other programs Encryption similar to magnetic tape of

Credit Card

RAM


Phone Battery

Smartphones battery ??Google Wallet won’t workHow to pay?

Possible Solution

Passive mode communication supportedSimilar to RFIDEmergency payment subject to authentication


Information Delivery

Delivering card information over-the-air

Internet, 3G/EDGE

Trusted Service Manager from First Data

Neutral Third PartyTrusted by both

senders and receiversDES and Secure Key

Management


Interoperability

Currently only works with AndroidGoogle subscriptionPhone can be changed..How to migrate financial records?

Google promised compatibility with iPhone, Windows and RIM

NFC consortium needs to actively define standards

Inter bank transfer of records Choice to the consumer


Implications


Google Wallet Ecosystem


Implications of Google Wallet - Retailers Advantages

Better serve the customer needs Retain More Customers Drive the right audience to store

More conversion from advertising to in-store purchase

Business Analysis Analyze the customers Create better loyalty programs and

offers

Concerns High Initial Cost Skepticism in Technology &

Security


Implications on Credit Card Companies & Banks Advantages

Digital Money – Secure & Easy Handling

Suitable for Fast and On the Go Generation

Easy Management of Money Enhanced Revenue

Concerns Integration of Mobile NFC

Technology with core banking process

Security & Integrity of Readers


Implications – Mobile Ecosystem Players Advantages

Increased Revenue through NFC chip enabled phones For both Chip makers and Handset OEMs

Increased data use for Mobile Carriers Key Players in the Google Offers ecosystem

Concerns Role of players in security of Devices and

Network Liability in case of compromise of

device/network Cost of handset may become high due to NFC

chip Need to justify the high price through

successful Google Wallet


Implications – End Users Advantages

One place to house all cards No need to carry cash Coupons too stored Stored in Mobile

An essential tool for today

Concerns Security Reach of Google Wallet Acceptance at small outlets High Impact on compromise of data

Cards, Driver’s ID, etc


Implementation in India India is seeing a economic boom

Mobile Penetration very high Smart Phone penetration low

Mobile Internet Connectivity too low Malls & Stores targeting Upper Middle Class

could introduce Google Wallet Free Wifi Fast and On the Go Generation

Security Threat – Mobile theft too high in India Non Techno savvy customers may face

problems


Conclusion Google Wallet

Promising Technology – Easy, Fast and Secure Very Nascent – Implementation only in San

Fransisco Require critical mass without which it will be a

failure Very few phones with NFC chip embedded Developing Countries like India cannot

support it Lack of Internet connectivity High Initial Cost

Trust in one company with all data sounds risky Hacking of Sony PSN , etc questions trust

Hope for a successful deployment with critical mass


Thank You

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