nfc and mobile money summit accelerator classes
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Ray de Silva, MArket Development Director at GSMA outlines some of the progress being made in developing the SIM-secured mobile NFC ecosystem at a recent NFC focussed event in MilanTRANSCRIPT
Restricted - Confidential Information© GSM Association 2012All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
Mobile NFC Services Programme 2012-2013
Mobile Money Summit – Accelerator Classes24 October 2012, Milano
Ray de SilvaMarket Development Director
The GSMA
The GSMA represents the interests of mobile operators worldwide. Spanning more than 220 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem.
© GSM Association 2012
GSMA Key Programmes
Spectrum Mobile NFC Connected Living
Rich Communications SIM Based Identification Global Roaming
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New Markets:• Latam• Eastern
Europe• Asia
Mobile NFC Programme
Existing Markets:• Canada• Asia (CJK)• Brazil• Poland• Western
Europe• Nordics• Australia
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NFC Momentum is growing
2004-5 2006-7 2008-10 2011 2012/13
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Mobile NFC brings new services to the consumer
TicketingPayments Transportation Loyalty/Coupons Access Control
Consumer
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The Secure Element
A 'secure element' is required to safely store a user’s identity information, for services demanding high levels of security
Sticker Easy to produce & attach No interaction with phone Supports 1 service
provider Not standardised
MicroSD Easy to attach Existing mobile
devices Supports 1 service
provider Customer care unclear Not
standardised/certified
Embedded Supports multiple
services OTA updates No service portability Customer care unclear Not
standardised/certified
SIM-based SIM is certified &
standardised Global standards (SWP) Supports multiple
services OTA updates Portable SIMs Operator customer care
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Why SIM?
Allows consumers freedom of portability between both network operators and handset providers, creating an open competitive environment for all globally.
Provides global interoperability through certified open standards that can be used by anyone, anywhere in the word, regardless of operator, or NFC-enabled handset.
Very secure. It can meet certified bank grade security standards and allows for ‘over the air’ management in the event of loss.
NFC Technology
Bank
Ap
p1Ba
nk
App2
Oth
er A
pp
+
SIM Secure Element
=
Mobile NFC
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Why Mobile Operators?
Substantial distribution channels to provide and promote NFC enabled services, and have sufficient economies of scale to provide mobile contactless to all
Customer care infrastructure providing consumers with a trusted transaction partner issues relating to their mobile services
Technical infrastructure for the provisioning and management of SIM cards and ensuring adequate security
Substantial experience in standards-based and interoperable services, enabling strong ecosystem development based on the mobile platform
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ISIS SIM-based NFC teaser video
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The Scale of NFCGlobal mobile payment transaction volumes will increase over the next five years to more than
US$1.3 trillion (Juniper August 2012)
50% of all smartphones
will be NFC enabled by 2015 (Gartner - March 2012)
Over 600k contactless enabled
PoS in China (NFC Times Julne2012).
100k contactless in the UK(UK Cards Association - September 2012
Samsung have sold over
20 MillionGalaxy SIII Handsets in 100 days (Samsung - Aug 2012)
Over 50% of spending put through Visa in Europe in 2020 will be via a mobile device (Visa – Jan 2012)
In 2013 up to
300 million NFC smartphones, tablets and eReaders will be sold (Deloitte - Jan 2012)
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Global SIM Based Mobile NFC Initiatives
France
Canada USA
UKSingapore
Korea
Commercial services also launched in: Poland, Czech Republic, Japan, New Zealand, Turkey
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Contactless payment Poland/Germany
• T-Mobile & Orange
launching mobile payment
solutions in the next 2
months
• New technology gives new
players the option to enter
established
markets/processes
• Payment will be a carrier
for other contactless
services
• Poland is the leading
country for NFC/contactless
payment
• EURO 2012 contactless
payment was in focus of
marketing campaigns by
payment/bank industry
• More and more merchants
accept contactless
payments
Summary NFC in Poland
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Singtel NFC mpayment service
A fast way to pay - no longer need to worry about not having cash on handConvenient and secure - Fast, easy and contactless, grab your purchases within minutes!Instant and easy top-up - skip the queues and top up via your phone.Widely accepted - over 20,000 merchants with the
Major Singapore Operators — SingTel, Starhub, and M1 released their NFC mobile wallets. These apps have amassed thousands of downloads
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To Summarise – The Solution Collaboration is essential
Reduces fragmentation Improves interoperability Government backing (e.g. France, Singapore) was extremely
important to help ecosystem building and triggering collaboration
Interoperability Open standards are essential
Increases competition by lowering barriers to entry Increases diversification and so allows new players to
offer services Increases consumer choice
Security Consumer Security and Privacy comes first There is no compromise on the bank grade security offered
via SIM-based NFC
© GSM Association 2012
Contact informationwww.gsma.com
Ray de SilvaMarket Development [email protected]