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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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