NFC: In Touch With Innovation

Koichi Tagawa Sony

Chairman, NFC Forum

AIPIA Congress Tokyo

October 2, 2012

2

About NFC

2

NFC is a Wireless Communication

3

Global Interoperability

Form Factor Free

4 4

5

NFC: How Does It Work? 3 communication modes

5

Connect the world of apps

with the physical world …Apps

jump into the world and touch people,

objects and other apps.

Connect devices through

physical proximity … magical

connection of devices by simply

touching them. A true device “hand

shake”.

Connect to an interactive wallet … Incorporates the use of a secure element

to allow your phone to act like an “interactive

card” for payment, transportation, ID and

physical access

Tag/Card Reader/Writer (Terminal)

Multi-standard (ISO/IEC14443, JIS X 6319-4/Felica, ISO/IEC15693)

Peer to Peer (Device to Device)

NFCIP-1, NFCIP-2 (ISO/IEC18092, ISO/IEC21481)

Card Emulation (Secure Element)

EMVCo/ISO/IEC14443, JIS X 6319-4/Felica

6

Three Mandatory NFC Modes

a different look

6

Card Emulation Peer-to-Peer Reader/ Writer

Similar quantity to

contactless plastic cards

Features

- Infrastructure compatible

- Virtual card

- Network enabled card

- Payment and Transport

10 times, or more larger

quantity than Terminals

Never before in the hands

of consumers

Open applications

New Paradigm!

Never existed before

Open applications

New Frontier!

100 – 300+ million devices per year

NFC is Consumer facing !

7

NFC Provides a Unique Bridge

Virtual World Physical World

Consumers Retailers

Consumers Marketers

Consumers Manufacturers

NFC Users NFC Users

This will weave NFC into the fabric of people’s

lives and drive greater use and demand.

7

8

Momentum is Building

Berg Insight – 100 million cell phones using NFC technology predicted to be sold this year alone

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

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

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

Yankee Group – Global mobile transactions predicted to grow to more than $1 Trillion by 2015

8 8

NFC Phones Here Now

9

Available in the market…

Acer Cloud

S500 Acer Liquid

Cloud S500 BIackBerry

Bold 9900/9930

Acer E320

Liquid Express

Blackberry Curve

9350/60/70

BIackBerry

Bold 9790

Cmii 1/3 BIackBerry

Curve 9380 Fujitsu Arrows µ F-

07D

Casio Ruggedized

IT-800RGC 35 Casio DT-X8 Google Galaxy

Nexus

Google

Nexus S HTC Desire C HTC Droid

Incredible 4GLTE HTC Evo 4GLTE HTC Incredible

HTC One X

9

More NFC Phones Available Now

10

HTC Ruby /

Amaze

Huawei Sonic/

Turkcell T20 Lenovo K800 LG Optimus 3D

Max/ 3D Cube LG Optimus Elite LG Optimus

L5/L7

LG Optimus LTE/2 LG Optimus

Net

LG T530/

Ego LG Optimus Vu

LG Viper Mobiwire

Cosyphone

Motorola

Droid Razr Motorola

MC75A HF

Motorola Photon

Q 4G LTE Nokia 603 Nokia 700

Nokia 701

10

More NFC Phones Available Now

11

Nokia 801T Nokia 808

Pureview Nokia Oro

Nokia

C7 / Astound Nokia N9

Orange San Diego

Pantech Sky Vega

LTE

Pantech Sky

Vega Racer Porsche Design

P'9981 Prada by LG 3.0 Samsung Galaxy

Mini 2

Samsung Galaxy

Note

Samsung

GALAXY S II

Samsung

S5230/S5260

Samsung Galaxy

S Advance Samsung Galaxy S

Blaze 4G

Samsung

SHW-A170K Samsung

GALAXY S III

11

More NFC Phones Available Now

12

Samsung Wave 578 Samsung Wave M / Y

Sonim

XP3300 Core NFC Sonim XP and NFC Sony Xperia

S/P/Ion/Sola

Turkcell

MaxiPRO5

Xolo X900 ZTE Turkcell

MaxiPLUS5 Turkcell T11

Maxiphone

And more being released…

12

NFC Tablets

13

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

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

The Sharp RW-T110 NFC2.3

Tablet announced in March

expands on the NFC

capabilities of the RW-T107

Tablet from 2011

Google Nexus 7 was announced

in June 2012, and is now available

in the US, UK, France, Germany,

Spain, Canada, and Australia

Samsung Galaxy Note II

phone/tablet with NFC – release

and launch dates coming soon..

Samsung also is rumored to be

prepping a new tablet with NFC

functionality

TazPad from TazTag aimed

at retail was launched in

France

13

NFC Tablets

14

A fast-moving segment, there are many NFC enabled tablets on the market

now, with more rumored to be coming from Samsung, Asus, Lenovo, and

more

Google Nexus 7

TazTag TazPad

Sharp RW-T107/T110

Kuoziro FT701W

LG Optimus Vu Samsung Galaxy Note

Panasonic BizPad Asmaitha Sruta

7” Tablet DLI 9000

14

More NFC Devices

15

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

NFC in Consumer Electronics

Pairing NFC Devices

– Home computer components

– In-car devices

– Home entertainment systems

– Headsets and handsets

– Cameras and printers / digital frames

Connectivity

– Quick, secure Bluetooth and Wi-Fi set-

up

– Fast data transfer

– Audio handover

Information Gathering

– Read product history from smart tag to

NFC phone

16 NFC Forum

17

NFC and

Active and Intelligent Packaging

17

18

NFC

Single step

Natively supported in

major OS

No lighting required

Up to 1MB data

Active and Passive

Commerce option

QR Codes

Multiple steps

App installation

required

Lighting required

Up to 3KB data

Passive

No commerce option

18

NFC and QR Codes

19

NFC

Active (intelligent)

3 operating modes

Multi-purpose

Security options

Commerce option

B2B2C

Proximity RFID

Passive

1 operating mode

Single-purpose

Few security options

No commerce option

B2B only

19

NFC and Proximity RFID

20

Commercial Uses

Package tracking

Content identification

Temperature exposure

log

Authentication

20

NFC and Active Packaging

21

NFC tags used to authenticate high-end

product

Complementing location-based services,

tracks bottles from production to end user

Protects against counterfeit and fraud

21

Example: Opus One Wines

22

A tag is placed on each bottle label holding a unique identifier, vintage, bottle size, and validation code

Bottle is scanned before placing in a wooden case, which is also tagged

The case tags are matched against palette tags

The palette tag is matched to the invoice upon delivery

22

Opus One: How It Works

Example: Shipping Tag

23

AIOI•Systems Co., Ltd.

Rewritable shipping tag with

NFC and e-ink display

Smart tag used to show

distribution lists or barcodes for

logistics

Enables network-linked logistics

management

Efficient; reduces paper

consumption

24

NFC Brings Efficiency

24

More flexible data management via NFC devices

NFC and barcodes working together

NFC-based picking system achieves ROI within

2 years

25

Promotional Uses

Personal messages

Coupons and discounts

for future purchases

Promotional offers

Cross-sales

25

NFC and Active Packaging

26

Informational Uses

Dosage directions

Ingredient lists

Emergency numbers

Information sources

Freshness status

26

NFC and Active Packaging

27

The NFC Forum

27

28

Mission and Goals

The mission of the NFC Forum is to advance the

use of NFC technology by:

– Developing standards-based specifications that

ensure interoperability among devices and services

– Encouraging the development of products using NFC

Forum specifications

– Educating the market globally about NFC technology

– Ensuring that products claiming NFC capabilities

comply with NFC Forum specifications

– Promoting the NFC Forum N-Mark

28

Define and Stabilize Technology

Refine Technology

Expand Ecosystem

Promote End User Usage

Support Interoperability

Enhance Technology

Support Ecosystem

2008 2011 2010 2012/13 2009

We Are Well into the Journey

29

Members – September 2012

SPONSOR MEMBERS

PRINCIPAL MEMBERS

30

Members – September 2012

NONPROFIT MEMBERS

IMPLEMENTER MEMBERS ASSOCIATE MEMBERS

31

32

NFC Forum Activities

32

Current Focus of Work

Establish the N-Mark as the global symbol of NFC functionality

Continue to develop and enhance specifications to meet market

demand

Expand and simplify the Certification Program to speed products to

market

Focus on educating the ecosystem about the potential of NFC

through liaisons, Special Interest Groups, partnerships, and industry

outreach

Establish confidence and credibility in the technology for everyone in

the value chain

Clarify the basis upon which innovation, partnerships, and the NFC

ecosystem will flourish

33

NFC Forum N- Mark

Consumer-facing mark

Available for devices and software via free

click-through license agreement

Universal symbol for NFC technology

Shows where to touch another N-Mark to

use NFC technology

Use on smart posters, devices, packaging,

software, POPs, signage, labels, cards,

and much more

Represents ease, convenience, greater

device functionality, and fast action

Download at:

www.nfc-forum.org/resources/N-Mark/

34

Compliance Program

Components

35

Certified Device

Plugfests

Certification Program

Interoperability Program

Compliance Program

2012 and Beyond

Vertical Special Interest Groups

(SIGs)

36

Awareness of

Technical

Committee Ecosystem

Committee

37

NFC Today

Core specifications are in place

Products being certified

N-Mark launched and supported by many

global companies

Multiple use cases on multiple devices

being deployed

What’s next: optimizing NFC for all potential

use cases

NFC is a Horizontal Technology

Reaches across multiple devices and multiple use cases

Consumers may not realize NFC is the technology

behind every use case

“Killer apps” like phones for payment and transit will only

be part of the eventual deployment, e.g.:

– Tag reading

– Consumer electronics pairing

– Digital media transfer

38

Consumer demand for NFC is essential for success.

NFC enables multiple use cases. To capture wider

consumer demand, broader use cases must be facilitated.

39

Our Solution

Build a platform for Special Interest

Groups (SIGs) to get involved with NFC

Rationale:

– Give industries the resources to figure out

how NFC can work in their vertical

– Provide a common approach to achieve

industry-wide interoperability, usage of marks,

consumer education, etc.

– Facilitate discussion and development

40

Vertical SIGs

2-way communication makes this work

– Obtain business requirements for possible specifications and

certification implications

– Jointly work on education and guidelines for each industry (e.g., white

papers, demos, best practices, how-to guides, etc.)

– Look at NFC from the consumer perspective and make sure the value

proposition is there

First-Generation NFC

CE

Payment

Retail

Health Care

Airlines Transit New

An Invitation to AIPIA Members

Join the NFC Forum

Participate in a SIG (e.g., Retail)

41

In Summary

NFC is a broad and robust technology

Our work is focused on ensuring a smooth and

timely deployment for solutions providers

– Specifications that cover all use cases now and in the

future

– Certification program that ensures compliance without

undue complexity

– Educational programs in conjunction with vertical

market players to show and encourage the breadth of

possible uses

42

Thank you!

43