NFC: Global Promise and

Progress

Lars Wemme

Chair, Payment SIG

NFC Forum

Omnicard

22 January, 2014

What will it take to achieve global

adoption of NFC?

Many of the key ingredients are

already here.

2

3

1. Consensus on

Adoption & Market Growth

3

4

Analysts Agree

ABI Research – 125 million NFC handsets shipped in 2012; 285M will ship in 2013; 500M in 2014

– NFC-enabled smartphone shipments are anticipated to increase by 481% from 2012 to 2015

Berg Insight – One in three mobile phones to come with NFC by 2017

– Between 2012 and 2017, installed base of NFC handsets will increase at a CAGR of 65% to reach 2.1bn units

– By 2017, the penetration rate for NFC across all handset segments will increase to approximately 32%

Gartner – 50% of smartphones will have NFC capability by 2015

Deloitte – In 2013 there may be as many as 300 million NFC smartphones, tablets and eReaders sold

Frost & Sullivan – By 2015, NFC will be the most-used solution for mobile payment, enabling worldwide

transactions totaling about $151.7 billion

Juniper Research – By 2017, 1 in 4 US consumers will use NFC-enabled devices to pay for goods in-store

4 4

2014

500M Handsets

2017

2.1bn Handsets

installed

2013

300M Mobile Dev.

2017

25% US consumers

use NFC

5

2. NFC-Enabled Devices

5

NFC Phones Available Now

Key flagship phone models with NFC

- Samsung Galaxy S4 & S3, Note 2 & 3

- LG G2, select Optimus series

- HTC One series

- Motorola Moto X

- Blackberry Z10 & Q10

- Nokia select Lumia series

- Sony select Xperia series

- Google Nexus 4/7/10, Galaxy Nexus

Android, BlackBerry, Windows Phone 8

all support NFC at operating system level

NFC Tablets

7

A fast-moving new segment, with several models recently announced and put

on the market with more rumored to be in the works:

Sharp RW-T110 NFC2.3

Tablet

Google Nexus 7

Samsung Galaxy Note II & III

phone/tablet with NFC

TazPad from TazTag aimed

at retail was launched in

France

7

… more are available …

More NFC Devices

8

Examples of additional types of NFC devices, available now and on the way…

Moneto: NFC

microSD for the

iPhone & Android

Revosys V5

interactive taxi

terminal/tablet

ViVOtech NFC

payment terminals

Sony RC-S380

reader/writer Glidepoint NFC

trackpad

Smart Meters for

utility companies Nintendo Wii

U controllers Payment wristbands

RhythmTrak

Heart Monitor

NFC “Digital Gum

Goods” by Razorfish

9

3. A Robust Set of Specifications

9

Specification Development

21 NFC Forum specifications

approved spanning core functions:

– Data exchange formats

– Tag types

– Record type definition

– Device interface controller

– Protocols

– Reference applications

– Personal Health Device Communication

10

11

4. A Way to Ensure Compliance

11

NFC Forum

Compliance Program

12

Coming

• Adding new testing capability and optimizing processes to: • Bring testing for new functionality to market faster

• Continually improve existing testing methodology

• Streamlining certification requirements with other industry organizations such as EMVCo

• Expanding the number and frequency of Plugfests around the world

All of these things are essential.

But they are only the prerequisites for

NFC adoption.

13

What else is needed?

Applications & Worldwide Demand.

14

NFC Simplifies Our Lives

15

The simplest

user interface A Pretty Close 2nd

NFC creates value for customers by

simplifying advanced features and

making them truly usable.

16

Paths to a World-Winning NFC

Solution

16

Wine Tracking

Tracks bottles from production to end user

Authenticates contents

Ensures quality via real-time temperature monitoring

Out of Home Advertising

17

Paths to a World-Winning NFC

Solution

17

Simplifying Consumer Electronics

Listening

Image Sharing

Data Exchange

Data Backup

Airline Boarding

• Boarding time 2x since 1970

• Avg. boarding time is now 40

mins. for a 140-passenger

domestic flight

• With NFC a 450-passenger

plane can board in 15 mins

Source: Japan Airlines

NFC Payments Score 8 out of 10 (SIA Study in Italy)

– 94% of the Italians who had the opportunity to try out NFC payments liked it

– 91% of consumers made between 4 and 10 NFC payments in a month

– Supermarkets and shopping malls were the most popular with 71% making a payment, followed by restaurants and bars (44%) and news stands and tobacconists (29%)

– Consumers liked speed (59%), practicality and convenience (47%), and the elimination of cash and cards (21%). 12% of testers also pointed to user-friendliness, that a PIN is not required for small amounts, and the simplicity of payment

– Practicality (77%), speed (75%) and convenience (73%) were the 3 aspects which testers believed will see NFC payment win the challenge with physical debit and credit cards

– Testers hope to see wider use of NFC in the future, particularly in public transport (88%), personal documents like health insurance cards (76%), to replace company badges (76%) and loyalty cards (73%)

Source: NFC World

18

I Like It!

94% of users

Supermarkets

Shopping Malls

71% of users

Convenience

73% of users

Practicality

77% of users

NFC is there!

Still Some Challenges to Overcome

19

1 NFC Adoption is visible & further growth is expected

2 NFC provides answers to major business challenges

3 NFC simplifies complex actions –

providing opportunities for new user experiences

4 NFC-Forum is a place to foster adoption and

contribute to overcome existing challenges

20

Thank you!

and

Join us!

20 20