NFC Service Launch in Hong Kong
Alex Kun
SVP, Product Development and Management
Wireless Business
25-06-2013
Latest Contactless Development Landscape
Octopus in Hong Kong
• 21 million cards issued
• Acceptance covering major public transports and retails
• 5,400 merchants and 12,000 points of sales
• Over 65,000 readers deployed including transport
Card Schemes in Hong Kong
• VISA – More than 1 million payWave cards
issued in 5 years
– 9,000 points of sales
• Mastercard – First PayPass card issued 2 years ago
– Deploying POS terminals with major banks
• UnionPay International – Actively introducing QuickPass services in
HK
Octopus for Transport
Contactless Infrastructure
VISA
payWave 9,000+ POS
Mastercard
PayPass
China UnionPay
QuickPass
Octopus 12,000+ POS
Merchant
Loyalty
Merchant
Stored Value
Resident
Card Staff
Card
Integrated Environment
In the Era of NFC Mobile Payment
HSBC
Hang Seng Bank
Bank of China HK
Octopus
Major financial institutions in Hong Kong have launched or
announced NFC mobile payment services
Secure Element Selection
Hong Kong is Food Paradise
TSM Infrastructure Development
MNO-TSM
SP-TSM
SP-TSM
Bank Host
Bank Host
Member
Bank 1
Member
Bank 2
Beyond Payment
Smart-Poster
For
Advertising
Sharing of PCCW-HKT Field Experience
NFC Project Overview
• Project Scoping
• Role & Responsibility
Definition
• Implementation
• Integration within Bank
Infrastructure
• Credit Card Product
Design & Validation
• IT Auditing &
Compliance (HKMA)
• Implementation
• Integration within
Telecom Infrastructure
• SIM Card Product
Design & Validation
• Handset Qualification
• Compliance (OFCA)
• End-to-end Acceptance
Testing
• Market Intelligence
• User Experience
Roadshow
• Customer Service Flow
Definition
• Launch Plan Definition
• In-house Training
• Customer Education
• Service Launch
• Service Review
• Operation Review
Bank
Mobile Operator • SIM & Handset Sourcing
& Ordering
• Merchant Education
T=0 T+1 T+4 T+7
Wallet Security Design
Credit card in SIM is not active
by Default
User has to click “Pay” to
confirm the intention of paying
Wallet is PIN protected to
avoid unauthorized use
HK Monetary Authority and Bank Association review from time to
time to ensure security level to give the greatest confidence to public
NFC Roadshow and Results • Roadshow organized to introduce NFC and Mobile Payment Service to
PCCW-HKT Staffs. 8-day Roadshow in 4 Locations
• Around 1000 staffs visited; More than 70% registered for New Mobile Payment Services
• General Feedback or Generally Asked Questions Q1. Easier to lose handset than wallet. High risk?
A1. SIM is as secure as credit card. PIN also available to protect from unauthorized use of credit card.
Q2. What handsets support the service?
A2. Samsung Note II/S3/S4, Sony Xperia Z, HTC One. More under qualification
Q3. Only one credit card or only one bank?
A3. Same SIM card can host several credit cards from different banks. Other applications are coming.
Q4. What make you use NFC? (Questionnaire question to visitor)
A4. Convenient and trendy
Information Subscription Equipment Installation Usage Customer
Support
Necessary Cooperation on Service Activation and Customer Support
From Bank or MNO, refer customer to each other
Compatible handset and SIM; eligibility check by MNO
Apply for mobile payment service; process owned by Bank
Download (or Preload by MNO) of Wallet
Transaction managed by Bank
Mobile Users contact MNO to support on Mobile Services
Core Values of MNO • Efficient Logistic Management of SIM for 15 Years
• Effective Issuance and Life-cycle Management of SIM
• Effective Management of Mobile Subscriptions
• Provision of Security Domain in NFC SIM to Banks
• Full Understanding of Customers’ Needs on Smartphone and Mobile Services
• Promotion of Mobile Services including Mobile Payment
• Rich Experience in Customer Education for New Services
• Fast Penetration of NFC-enabled Phones (Service-bundled)
• Handset Qualification and On-going Management of Handset Firmware
• Customer Support with Well-trained Staffs
Key Success Factors • Common Ecosystem
– Close cooperation with a wide range of partners (financial institutions, transportation, technical suppliers, MNOs...)
– Respect partners’ core value
• Open Architecture and Standard – NFC Services, Devices, Trusted Service Managers, Secure Element,
MNOs...
– Adopt industry standard
• Security – Personal data must be securely stored in SE and managed via TSM
– Service should be peace of mind
• Portability – Continuity of services is important when changing handsets
Only possible using SIM card as a Secure Element
NFC = Not Feasible without Cooperation
Thank You!
Top Related