IIM Lucknow NFC Presentation

1. Near Field Communication:
Google Wallet
Sourav | Rohith | Sanjay | Vaibhav
Section ‘A’
Group 12

2. Agenda
 Introduction to NFC
 Introduction to Google Wallet
 Technical Challenges
 Google Wallet Ecosystem and Implications
 Implementation in developing economies like India
 Conclusion
2 IIM Lucknow February 17, 2013

3. Introduction to NFC
3 IIM Lucknow February 17, 2013

4. Introduction to NFC
Wireless technology
 operates on short ranges
Communications b/w devices
that
 Touch
each other
 Momentarily held close together.
 Cell Phone can be used as
 Travel pass, event ticket , office
pass
 Pay for goods in a store
 Interact with outdoor media
 Placing the device near to an
NFC terminal (reader).
 Works in a similar way to
contactless smartcards used
for travel in some cities or to
access workplaces.
4 IIM Lucknow February 17, 2013

5. The Technology
 Open platform technology
 Approved as an ISO/IEC global
standard in December 2003
 Based on Radio Frequency
Identification (RFID) technology and
operates at 13.56 MHz on ISO/IEC
18000-3 air interface and at rates
ranging from 106 kbit/s to 848 kbit/s.
 It works via magnetic field induction
and operates on an unlicensed radio
frequency band.
 Two things are required: Tags and
Reader.
“Tags” embedded within Readers
Read and Process Data
 The technology enables such devices
that are held together to share
information either in one direction or
both
5 IIM Lucknow February 17, 2013

6. Benefits and Capabilities
Payments –
Access Information
Healthcare - Loyalty and identity Transport –
control – Consumer collection and
service coupons – management ticketing and
identity electronics exchange –
discovery payments and and business payments
management file sharing
process
Versatile, Open and
Variety of Use
Intuitive Interactivity Standards-Based
from payment for goods to
the interactions involving can be easily deployed in a
ticketing and from pairing
NFC enabled devices require large range of industries,
devices to sharing information
no more than a simple touch environments and
or discovering new services
applications
Remote management
Security Multi-application use is
it is possible to build multiple supported by the NFC Mobile
levels of security into an NFC Phones and the addition of a
enabled device. mobile network enables
application management
6 IIM Lucknow February 17, 2013

7. Comparison with Sony FelicA
 Felica uses proprietary command protocol than NFC, on JIS-X 6913 standard as compared to
NFC which is based on ISO-14443A standards
 The lower level and framing protocols are similar in both of them.
 Data can be transmitted at higher speeds using the FeliCa variation, either 212kBps or
424kBps as compared to the NFC which has typical speeds of 106 kBps.
 The different command protocol technology in Felica tags enables deployment of proprietary
authentication and encryption in communication messages.
 Felica tags are based on Type 3 standardsof tags which are costlier than other types of Tags ( 1
and 2 types are usually used in NFC).
7 IIM Lucknow February 17, 2013

8. Google Wallet
8 IIM Lucknow February 17, 2013

9. Google Wallet – What it is
 Google Wallet
 a mobile payment system which
allows users to use their smart phones
to pay at various merchant’s store
 Payments, offers, loyalty, and much
more
 Currently available only on Sprint
Nexus 4G handset
 Supported cards
 Citi® MasterCard® credit card
 Google Prepaid Card
9 IIM Lucknow February 17, 2013

10. Google Wallet
10 IIM Lucknow February 17, 2013

11. Google Wallet – Partners & Merchants
 Issuing bank - Citi
 Payment Network - Mastercard
 Merchant processing and Trusted Service
Manager
 First Data
 Mobile Operators - Sprint
 Technology partners
 Point of sale - VeriFone, ViVOtech, Hypercom,
Ingenico
 Semiconductor – NXP
 Single Tap – Subway, The Container Store,
Macy’s
11 IIM Lucknow February 17, 2013
 Tap & Pay – Coca-Cola, CVS Pharmacy, etc

12. Google Offers
 Attractive deals from local
merchants
 Offer email based on area of choice
 Offers can also be searched on
various Google products like
Google
Search, Maps, Latitude, and
Shopper
12 IIM Lucknow February 17, 2013

13. Google Wallet - Security
 PIN
 Reject weak PIN like “1234”
 Phone Lock
 Secure Element chip
 Only Trusted Service Manager (First
Data) has the key to access data
 Secure data transmission
 Follows PCI-DSS (Payment Card Industry
– Data Security Standards)
 Deactivation on entering invalid pin
several times
 Secure Element chip non-identifiable
in idle situation
 Stolen Phone Deactivation
13 IIM Lucknow February 17, 2013

14. Technical Challenges
14 IIM Lucknow February 17, 2013

15. Mobile Viruses
 Due to open nature of OS, Android mark
infested with viruses
 Can spread easily from mobiles
15 IIM Lucknow February 17, 2013

16. Mobile Viruses
RAM
 Payment Information on isolated memory on
separate chip
 No access to other programs
 Encryption similar to magnetic tape of Credit
Card
16 IIM Lucknow February 17, 2013

17. Phone Battery
 Smartphones battery ??
 Google Wallet won’t work
 How to pay?
Possible Solution
 Passive mode communication supported
 Similar to RFID
 Emergency payment subject to authentication
17 IIM Lucknow February 17, 2013

18. Information Delivery
 Delivering card information
over-the-air
 Internet, 3G/EDGE
 Trusted Service Manager
from First Data
 Neutral Third Party
 Trusted by both senders
and receivers
 DES and Secure Key
Management
18 IIM Lucknow February 17, 2013

19. Interoperability
 Currently only works with Android
 Google subscription
 Phone can be changed..
 How to migrate financial records?
 Google promised compatibility with
iPhone, Windows and RIM
 NFC consortium needs to actively define
standards
 Inter bank transfer of records
 Choice to the consumer
19 IIM Lucknow February 17, 2013

20. Implications
20 IIM Lucknow February 17, 2013

21. Google Wallet Ecosystem
21 IIM Lucknow February 17, 2013

22. Implications of Google Wallet - Retailers
 Advantages
 Better serve the customer needs
 Retain More Customers
 Drive the right audience to store
 More conversion from advertising to
in-store purchase
 Business Analysis
 Analyze the customers
 Create better loyalty programs and
offers
 Concerns
 High Initial Cost
 Skepticism in Technology &
Security
22 IIM Lucknow February 17, 2013

23. Implications on
Credit Card Companies & Banks
 Advantages
 Digital Money – Secure & Easy
Handling
 Suitable for Fast and On the Go
Generation
 Easy Management of Money
 Enhanced Revenue
 Concerns
 Integration of Mobile NFC
Technology with core banking
process
 Security & Integrity of Readers
23 IIM Lucknow February 17, 2013

24. Implications – Mobile Ecosystem Players
 Advantages
 Increased Revenue through NFC chip enabled phones
 For both Chip makers and Handset OEMs
 Increased data use for Mobile Carriers
 Key Players in the Google Offers ecosystem
 Concerns
 Role of players in security of Devices and Network
 Liability in case of compromise of device/network
 Cost of handset may become high due to NFC chip
 Need to justify the high price through successful
Google Wallet
24 IIM Lucknow February 17, 2013

25. Implications – End Users
 Advantages
 One place to house all cards
 No need to carry cash
 Coupons too stored
 Stored in Mobile
 An essential tool for today
 Concerns
 Security
 Reach of Google Wallet
 Acceptance at small outlets
 High Impact on compromise of data
 Cards, Driver’s ID, etc
25 IIM Lucknow February 17, 2013

26. Implementation in India
 India is seeing a economic boom
 Mobile Penetration very high
 Smart Phone penetration low
 Mobile Internet Connectivity too low
 Malls & Stores targeting Upper Middle Class could
introduce Google Wallet
 Free Wifi
 Fast and On the Go Generation
 Security Threat – Mobile theft too high in India
 Non Techno savvy customers may face problems
26 IIM Lucknow February 17, 2013

27. Conclusion
 Google Wallet
 Promising Technology – Easy, Fast and Secure
 Very Nascent – Implementation only in San Fransisco
 Require critical mass without which it will be a failure
 Very few phones with NFC chip embedded
 Developing Countries like India cannot support it
 Lack of Internet connectivity
 High Initial Cost
 Trust in one company with all data sounds risky
 Hacking of Sony PSN , etc questions trust
 Hope for a successful deployment with critical mass
27 IIM Lucknow February 17, 2013

28. Thank You
28 IIM Lucknow February 17, 2013