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NFC Bridging the Internet of Things

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NFC Bridging the Internet of Things

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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.

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.

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NFC Bridging the Internet of Things

  1. 1. NFC Bridging the Internet of Things Paula Hunter. Executive Director November 20, 2014
  2. 2. Agenda  NFC Growth and Status Globally  Payment: Challenges and Opportunities  Convergence - IOT and NFC  Playing well with others (BLE, Wi-Fi) 2
  3. 3. 3 NFC Technology Global Market Situation
  4. 4. NFC Forum Mission and Goals Mission: advance the use of NFC technology 4  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
  5. 5. 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”. Tag/Card Reader/Writer (Terminal) Multi-standard (ISO/IEC14443, JIS X 6319-4/Felica, ISO/IEC15693) 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 Card Emulation (Secure Element, HCE) EMVCo/ISO/IEC14443, JIS X 6319-4/Felica 5 Peer to Peer (Device to Device) NFCIP-1, NFCIP-2 (ISO/IEC18092, ISO/IEC21481)
  6. 6. 6 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
  7. 7. NFC Phones Available Now 7 • 275+ models worldwide • 500+ million in market • 1.2 billion by 2018
  8. 8. NFC Handset Shipments 8 Source: IHS Technology
  9. 9. 9 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 9
  10. 10. Infinity Asus Vivo Tab DLI 9000 NFC Tablets (Representative) 10 NFC-enabled tablets on the market or coming soon Google Nexus 7 Kuoziro FT701W Asus Vivo Tab/Tab RT HP Elitebook Revolve Asus Padfone Google Nexus 10 Smart Asus Padfone 2 BWC ToughSlate Fujitsu Arrows Tab HP Elitepad 900 Asmaitha Sruta 7” Tablet 7″Cetrix CT973G Cetrix CD661
  11. 11. NFC Laptops HP Envy x2 Lenovo ThinkPad Helix Sony Vaio Fit 11
  12. 12. More NFC Devices Additional types of NFC devices available now or on the way Samsung NFC-enabled laser printer Moneto: NFC microSD for the iPhone & Android Revosys V5 taxi terminal/tablet ViVOtech NFC payment terminals Glidepoint NFC I-O Data WiFi Router Sony RC-S380 reader/writer trackpad Smart Meters for utility companies Nintendo Wii U controllers Barclay Card Payment wristbands RhythmTrak Heart Monitor 12
  13. 13. New NFC Product Showcase 13 http://nfc-forum.org/nfc-product-showcase
  14. 14. New Developer Program launched 14 http://tapintonfc.org/
  15. 15. 15 NFC and Payment
  16. 16. 16 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 16
  17. 17. 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 17
  18. 18. 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 18
  19. 19. 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 19
  20. 20. Host Card Emulation: Accessing an Infrastructure of Acceptance 20 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
  21. 21. 21 NFC and Internet of Things
  22. 22. 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 22
  23. 23. 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 23
  24. 24. 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 24
  25. 25. How NFC Supports the Internet of Things 25 An inexpensive means of providing intelligence Easy network access NFC Connection Handover A way to link physical objects to NFC-enabled chips A means of easy user control the online world Intuitive tap interface NFC tags
  26. 26. NFC in the Internet of Things Touch an NFC-enabled phone to the TV remote and its screen is instantly mirrored on the TV 26
  27. 27. 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 27
  28. 28. 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 28
  29. 29. NFC in the Internet of Things NFC-enabled appliances allow control from anywhere and receive helpful Web content. 29
  30. 30. NFC in the Internet of Things NFC-enabled vending machines  Pay with a tap  Earn loyalty points 30
  31. 31. 31 Convergence of NFC and IoT “Playing Well with Others”
  32. 32. Recent NFC Developments Supporting the Internet of Things 32 • Extend the power and reach of NFC • Enable a seamless, enjoyable user experience
  33. 33. 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 November 33
  34. 34. Wi-Fi Alliance Pushes the NFC Button 34  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
  35. 35. Liaison Partners 35
  36. 36. Thank You … and Join Us! 36 www.nfc-forum.org

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