1. What is NFC?
Designed for short distance communication (up to 100 cm)
It’s a contactless card and a contactless reader in one chip
It operates at 13.56 MHz
It’s designed for low bandwidth (max speed is 424 kBaud)
Applications aimed for are
Ticketing
Payment
Device Pairing
Short Range
13,56MHz
RF Link
2. Some details we need to know…
• There are dedicated roles
– Initiator and Target
– Any data transfer is a message and reply pair.
Initiator Target
Reply
• There are dedicated modes of operation
– Active and Passive
– Active means the device generates an RF field
– Passive means the device uses the RF field generated by the
other device
Message
3. Classification of Mobile Payments
Based on
Value
Micro
Payments
Based on
Charging
method
Based on
Location
Based on the
validation of the
tokens exchanged
Macro
Payments
Mini
Payments Proximity
Payments
Remote
Payments
Pre-paid
Post-paid Online
Payments
Offline
Payments
(ex: e-coins
in P2P
transfers)
6. B. Present scenario
•Credit card is a mode of payment that is an alternative to cash.
•Credit card offers free credit, bears risk, and thus is an expensive payment
mode.
•The product design and promotions are such that the pricing is kept hidden and
the users are oblivious of the fact that the cost is ultimately borne by them.
•Debit card is another alternative to cash.
•This mode of payment offers no credit, carries no or minimal risk.
• It has still been priced at par with the credit card by the banks- a price
someone pays.
7. •Costs of the debit/credit card system are passed on to the merchants who
accept cards.
•Such expenditures for the merchants can be as high as 50% of their profits.
•There are three options for the merchant (three scenarios) –
(i) If he is not allowed to surcharge; he passes this cost to his product price.
The card (or even cash) user is not able to feel this hidden price adjustment
upfront.
(ii) If the merchant is allowed to surcharge or offer discounts for cash, the
card user prefers to use cash instead, leading to an inefficient payment
mode.
(iii) The merchant decides not to incur additional expenses- Do not accept
cards.
8. C. Drawbacks of the present system
Oblique pricing structure treats and prices the credit and debit card in a similar
manner.
This has several drawbacks hindering its growth/popularity and even cause
potential risk to users.
We list few of the drawbacks.
Under utilisation of debit cards: Though the number of debit cards is currently 16
times higher than the credit cards, the average number of transactions per debit
card is 14 times less.
Lower acceptability of cards by merchants: The merchant fees at POS for debit
card swipes is a disincentive for small and medium merchants, who have less
pricing power due to their low volumes, to transit to card based payments. With
6.3 lakh POS terminals, Debit and credit cards together account for only three
card transactions per day per POS.
Increase in cost of currency management: Card transactions at POS have been
only about 6.5% of retail sales. This large cash dependence (93.5%) imposes
huge pressures on currency management.
9. Reduces reserve base of the banking system: Stock of currency held
outside of the banking system constitutes a potential source of
unproductive economic resources because these cash stores are not
available for credit expansion— thereby impeding monetary growth.
Lack of accountability: Predominance of cash in retail sales leads to
deterioration in business accountability as transaction tracking is not
possible, it enables tax leakage, diminishes financial inclusion and
enables existence of a parallel economy.
Potential of fraud: There is greater risk attached to debit cardholders
in case of fraud as cardholder is deprived of the money. Currently
banks offer either pin-based or signature-based debit cards. As a lost
or stolen debit card is useless without its PIN, consumers usually
prefer pin-based debit cards.
10. •In order to address the issues of credit and debit card usage, we aim to
a) estimate the share of cash and cards in retail sales.
b) obtain the costs incurred by retailers for accepting cards (be it credit or debit
cards) as against cash.
c) determine retailers’ preference of accepting various modes of payment.
d) establish whether credit and debit cards costs the same to merchants.
e) understand how merchants account for MDR and their willingness to bear it.
f) determine whether there is any indirect subsidization provided by cash
consumers for card consumers.
g) know whether the displayed selling price of goods could be reduced if
merchants are allowed to surcharge.
h) know merchants’ opinion on the effect of freedom to surcharge.
i) know whether merchants prefer a ceiling on debit card fee or not.
12. Bank - A Bank -B
Switching
(NPCI)
Settlement
(CCIL)
Interbank Mobile
Payment Service
(IMPS)
Payer-X Payee- Y
13. User Level Challenges
• Local language support on Mobiles
• Generation of Transaction report
• Mobile Application on Phone memory or SIM or
memory card ?
• Trace of transaction data or critical personal data :
access by others
• Mobile Wallet : risk of multiple cards in the device
and value offload for cash exchange in local
currency
• Mobile based Financial Inclusion services
• Complaint registration and Grievance resolution
15. BC Micro ATM ATM /
Merchant PoS
Bank A Bank B
Switching
(NPCI)
Biometric
Authentication
( UIDAI )
Settlement
(CCIL)
Customer
Mobile based Financial Inclusion
and
Mobile Wallet
19. Multi-tech Card Readers
• 125 kHz, 13.56 MHz, magnetic
stripe
• Legacy card platforms can
co-exist with new card
technologies, allowing for
thoughtful technology
migrations.
• 125 kHz, 13.56 MHz, magnetic
stripe
• Legacy card platforms can
co-exist with new card
technologies, allowing for
thoughtful technology
migrations.
Readers that support
Multiple Technology Card Platforms
21. The newest reader technology
allows proximity cards and
secure smart cards (EV1,PIV,
FIPS 201) to be read on the
same reader, and even
biometrics!
The newest reader technology
allows proximity cards and
secure smart cards (EV1,PIV,
FIPS 201) to be read on the
same reader, and even
biometrics!
Multi-tech Card ReadersCK1
22. Slide 21
CK1 I don't think this is necessary in the PPT, but rather in the speech... What do you think?
"Simple changes in firmware and/or software encoding to enable Multiple platforms to be read."
Christa Kenny, 4/18/2012
23. New technologies, such as mobile
phones, are being used for more
everyday! They communicate to readers
by RFID technology.
Mobile Phones for ID!
Smart mobile phones can be used for:
• Unique Identification
• Access Control;
• Purchasing goods or services;
• Receiving information;
• And more…
Smart mobile phones can be used for:
• Unique Identification
• Access Control;
• Purchasing goods or services;
• Receiving information;
• And more…
24. Near-Field Communications
-Short-range wireless RFID technology which
uses low speed signals to allow two devices to
automatically start communicating when they
are close to one another.
NFC Technology
25. THE TECHNOLOGY
• NFC is “Near Field
Communication”
• Close proximity wireless
technology
• Fully standardized
• Compatible with existing smart
card infrastructure
• Expected 2012 phone penetration
150M+
• Intuitive, super easy to use
THE TECHNOLOGY
• NFC is “Near Field
Communication”
• Close proximity wireless
technology
• Fully standardized
• Compatible with existing smart
card infrastructure
• Expected 2012 phone penetration
150M+
• Intuitive, super easy to use
What is NFC?
ENABLES
3 USE CASES:
• Discovery
• Transactions
• Exchange
26. • Offers / coupons
• Directions
• Mass transit schedules
• Reviews/recommendations
• On the spot services
• Movie trailers
• Social media updates
• On the spot reviews
“CHECK IN”“PICK UP”
Touch to…
learn more, get deals, be social...
Discovery
27. • Speed
• Convenience
• Ease of use
• Existing infrastructure
• Multitasking
• Mobile computing power
• Rich user interface
Transactions
28. • Person to Person:
• Contact info, photos, songs,
playlists
• Social networking
• Gaming
• Machine to Machine:
• Touch setup of BT or WiFi for easy
pairing and sharing
Exchange
29. • 2011 35+M phones on the market
• 2012 150+M phones forecasted
• 100+ different models
• All handset makers
• All regions
NFC Market Status
30. Bringing ads & info to life…
PAST
• Visual experience
TODAY
• Rich, dimensional
experience
• Video
• Sticky
• Social
Smart Posters and Objects
Guide student journey
31. Attractive for brands & merchants
Precise and trackable
analytics
• Are people engaging?
• What is working?
• Changing content
Precise and trackable
analytics
• Are people engaging?
• What is working?
• Changing content
32. Personalized
- Dynamic content engine
- “Me Based Services”
• Tailored content to me
when I want it
• Micro Opt-in
- Dynamic content engine
- “Me Based Services”
• Tailored content to me
when I want it
• Micro Opt-in
33. Digitizing the physical campus – people, places and things
NFC tags all over campus will enable…
• Campus information services with a simple touch
Campus maps, event information
Class schedule, building/room schedules
• Consumer friendly services around campus
Retail, bars, restaurants – touch to get offers
Check-in with your social media account with a tap
Smart advertising
Campus ROI opportunities
• Easy connections to campus services
Touch for easy WiFi setup
Touch to print/copy, etc
NFC on Campus
34. • NFC enabled phones for building and IT access
Full over the air (OTA) management of credentials for
NFC enabled phones
NFC stickers for phones that do not have NFC
Plug into existing infrastructure
• Credentials on mobile phone for other services
Event tickets
Public transit pass
Payment – closed loop at campus stores and vending
machines, etc
NFC on Campus continued
35. Where is this headed?
TAGS EVERYWHERE!!!
• Link between physical & digital worlds
• Quick roll outs
• Diverse uses
• Behavior change
TAGS EVERYWHERE!!!
• Link between physical & digital worlds
• Quick roll outs
• Diverse uses
• Behavior change
36. • Near Field Communication (NFC) technology makes life easier and
more convenient for consumers around the world by making it simpler
to make transactions, exchange digital content, and connect electronic
devices with a touch.
• A standards-based connectivity technology, NFC harmonizes
today's
• diverse Contactless technologies, enabling current and future
solutions in
• areas such as:
• Access control
• Consumer electronics
• Healthcare
• Information collection and exchange
• Loyalty and coupons
• Payments
• Transport
37. OUR CAPABILITIES
• Loyalty
• National Identification
• Driving License
• Vehicle Registration
• NFC Mobile Payments
• Membership Card
• Library Management System
• Health Card
• Prepaid Petro Card
• Time & Attendance System
• And Limitless Application n Tracking System
38. 37
Let us consider an example of a Merchandise purchase using a mobile device (smart phone) online.
1.The consumer browses for the best deal to buy few books online on a retail outlet’s website and
sets up an alert to receive SMS on Online or Store sale and discount season.
2.He receives an SMS coupon for a cool deal on his favorite novels if purchased online that reads 20%
cash back from the online store on which he had setup alerts.
3.He logs into the store’s online shopping portal using his smartphone and completes a purchase
order.
4.He uses his credit card details (saved in his profile on the portal’s ‘My Profile’ page) to complete the
payment transaction and just before submission he redeems 20% discount
5. He has now accomplished a payment transaction using the retailer’s mobile browser application.
Differences B/w Regular mobile Payment Transaction
Vs NFC Based Payments Transaction with an example
Internet
43. Era of Disruption
New platforms &
ecosystems
Players
Features
2+ years Time
A paradigm shift in consumer
commerce behaviour, driven by the
emergence and ubiquitous acceptance
of an alternative ecosystem
Focus:
New Ecosystem
Era of Plastic
Consolidated
capabilities
Era of Mobile
New standards +
applications
Today - 2 years
Value Proposition
Emergence of new business
models and value chains
centered on the disintermediation
of existing players
Focus:
New Platforms
1990s - today
Traditional model, faced
with increasing competitive,
regulatory and market
pressures
Focus:
Back-end Enabler
New revenue model
focused on layered
VAS, marketing, and
data analytics
Changing cost and
revenue margins due
to regulatory shifts
NFC is part of a larger shift in market models and
consumer behaviour
44. My bank in my pocket
Quick and simple
payments
Transfer money
immediately to
friends and family
No need to
carry cash or look
for an ATM
Real time statement
of payments
Payments linked
directly to loyalty
schemes
Peace of mind My life in control
Convenience Efficiency
Mobile NFC will enable simple transactions
and a range of bank services on the phone
45. Mobile NFC has the potential to
transform the airport experience
Simplify today's mobile experience
More than 70% of passenger
would like to use mobile for
check-in and boarding *
Between 2% and 3% succeed*
* SITA 2011 Passenger Survey
Automatic check In
Self-service bag drop
Security check
Coupons for retailers
Lounge access
Boarding the plane
Mobile NFC
used
throughout
the airport
journey
46. The successful launch in Nice was a 1st for
Europe
All three mobile operators have participated
Customer acquisition through ‘standard’
channels
Full range of services
9 cities now plan to deploy mobile NFC services
47.
48. THANK YOU 4 YOUR TIME
Presentation Made By
khaledhasan@gmail.com
+8801713121116
