NFC Bridging the Internet of Things

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NFC Bridging the Internet of Things Paula Hunter. Executive Director November 20, 2014

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Presentation by Paula Hunter at the Internet of Things 2014 In this presentation, Paula Hunter (Executive Director, NFC Forum) gives an overview of NFC Growth and the status of NFC globally, challenges and opportunities of NFC in payment, and the convergence of IOT and NFC.

Transcript of NFC Bridging the Internet of Things

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Agenda

NFC Growth and Status Globally

Payment: Challenges and Opportunities

Convergence - IOT and NFC

Playing well with others (BLE, Wi-Fi)

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NFC Technology

Global Market Situation

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NFC ForumMission and Goals

Mission: advance the use of NFC technology

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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

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NFC Operates in 3 Modes

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 a common

infrastructure …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)

Card Emulation (Secure Element, HCE)

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

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Peer to Peer (Device to Device)

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

ISO/IEC21481)

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Recent Developments

New NFC/Bluetooth LE solutions

– Smart thermostats, hybrid beacons

First NFC-enabled household appliances launched

Wearables market takes off

First nationwide NFC payments rollout in US

New HCE feature in Android 4.4

Top payment associations launch HCE solutions

Major North American coffee shop launches NFC pay

ApplePay launched

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NFC Phones Available Now

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• 275+ models

worldwide

• 500+ million in

market

• 1.2 billion by 2018

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NFC Handset Shipments

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Source: IHS

Technology

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Analysts Agree – NFC Growth

ABI Research– Over 500+m devices in the market in 2014

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

IHS Technology– Annual shipments increasing from 275m units in 2013 to 1.2bn

units in 2018

– Two in three phones to come with NFC by 2018

Juniper Research– 516m mobile users of NFC by 2019

Mobile NFC Association– Over 20m NFC handsets now in use in Japan

Research and Markets– The global NFC market was valued at USD 1.06bn in 2012 and is

expected to grow at a CAGR of 43.7% from 2013-2019

Transparency Market Research– NFC market to reach 20.01bn USD by 2019

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DLI

9000

NFC Tablets(Representative)

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NFC-enabled tablets on the market or coming soon

Google Nexus

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Kuoziro

FT701W

Asus Vivo

Tab/Tab RT

HP Elitebook

RevolveGoogle Nexus

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Asus Padfone

Infinity Asus Vivo Tab

Smart

Asus Padfone 2

BWC ToughSlate Fujitsu

Arrows Tab

HP Elitepad

900

Asmaitha Sruta

7” Tablet

7″Cetrix CT973G Cetrix CD661

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HP Envy x2 Lenovo ThinkPad Helix Sony Vaio Fit

NFC Laptops

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Samsung NFC-enabled

laser printer

More NFC Devices

Additional types of NFC devices available now or on the

way

Moneto: NFC

microSD for the

iPhone & Android

Revosys V5 taxi

terminal/tabletViVOtech NFC

payment terminals

Sony RC-S380

reader/writer

Glidepoint NFC

trackpad

Smart Meters for

utility companies

Nintendo Wii U

controllersBarclay Card

Payment wristbands

RhythmTrak

Heart Monitor

I-O Data

WiFi Router

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New NFC Product Showcase

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http://nfc-forum.org/nfc-product-showcase

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New Developer Program launched

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http://tapintonfc.org/

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NFC and Payment

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Analysts Agree – NFC Payments

Juniper Research

– By 2017, 1 in 4 US consumers will use NFC-enabled

devices to pay for goods in-store

– 1.5bn+ mobile wallets in use around the world by 2018

Eurosmart

– Eurosmart forecasts 600m NFC secure elements in 2015

Transparency Market Research

– NFC market to reach 20.01bn USD by 2019

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Payment Trends

NFC Forum specifications provide a strong but flexible foundation, enabling application developers to implement different mobile payment models

All major smartphones now support NFC-based payments– Provides broader market for retailers, application

developers, and service providers

– All NFC payment platforms benefit by having better trained store personnel and increased acceptance by retailers

NFC’s support for existing POS infrastructure makes it possible to use Apple and Android payment offerings globally

Catalyst to extend use cases in wearables, automotive, and other consumer electronics devices

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The Contactless Payment

Ecosystem

Handset Manufacturers

– All major smartphone mfgs deploying NFC technology

Financial Institutions and Payment Cos

– Migrating to Chip/PIN to address fraud drives merchant

change over to contactless readers

Merchants

– EMVCo directives accelerating reader change over

Application Providers

– APIs for HCE opening new opportunities for developers

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Challenges

Security a top concern for consumers

“Proprietary” solutions that lock in customers

causes fragmentation and confusion

Retailers are faced with balancing deployment

and operational costs with end-user preferences

Handset manufacturers and MNOs looking for

approaches that reach maximum audience

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Host Card Emulation: Accessing

an Infrastructure of Acceptance

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Contactless is part of many peoples daily lives and

acceptance of contactless is pervasive• Retail Stores, Hotels, Corporations, …

• plus Laptops and other Consumer Electronic devices

HCE opens the door for developers to exploit the

infrastructure and deliver better user experiences

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NFC and Internet of Things

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Benefits of

the Internet of Things

Increased productivity

Fewer steps

Less data re-entry

Greater, easier control

Better coordination

Data analytics

Cost savings

Gartner: 26+ billion connected devices by

2020

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Business Examples of

the Internet of Things

According to Information Week:

Union Pacific cut train derailments by

75% using remote sensors

Dubai Aluminum used sensor data to

improve efficiency and increase output by

3.4%

FedEx expects to save $9 million/year

with truck sensors for more efficient dock

assignments

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Consumer Examples of

the Internet of Things

Wearable baby monitors

Cars that send alerts for

service needs

Smart thermostats that

automatically adjust the

temperature

Ovens that preheat in

time for your arrival

home

… and many more

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How NFC Supports the Internet of

Things

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An inexpensive means

of providing intelligence

Easy network access

A way to link

physical objects to

the online worldA means of easy user control

NFC-enabled chips

NFC Connection Handover

Intuitive tap interface NFC tags

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NFC in the Internet of Things

Touch an NFC-enabled phone to the TV remote and its screen is instantly mirrored on the TV

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NFC in the Internet of Things

Temperature/humidity sensors in fine wine cases

Provides data en route with a tap of an NFC-enabled device

Tracks cold chain for quality

Ensures provenance

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NFC in the Internet of Things

Smart Lighting

Link energy-harvesting wireless light switches to a home network with a touch an NFC-enabled phone

Simplifies setup and control

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NFC in the Internet of Things

NFC-enabled appliances allow control from anywhere and

receive helpful Web content.

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NFC in the Internet of Things

NFC-enabled

vending machines

Pay with a tap

Earn loyalty

points

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Convergence of NFC and IoT

“Playing Well with Others”

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Recent NFC Developments Supporting

the Internet of Things

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• Extend the power

and reach of NFC

• Enable a

seamless,

enjoyable user

experience

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Updated Bluetooth Secure

Simple Pairing with NFC

Application Document

guides developers in

building solutions that

seamlessly combine

Bluetooth and NFC

Updated to include

Bluetooth® Smart

devices and Bluetooth

LE

Product of formal

liaison with Bluetooth

SIG signed last

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Wi-Fi Alliance Pushes the NFC Button

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Wi-Fi CERTIFIED Wi-Fi

Protected Setup™ now

includes NFC “tap-to-connect”

for simple setup of security-

protected Wi-Fi devices and

networks

Extends the reach of Wi-Fi

Protected Setup to smart

home devices (refrigerators,

thermostats, security systems)

with a single tap

Key enabler for the Internet of

Things

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Liaison Partners

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Thank You

… and Join Us!

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www.nfc-forum.org