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.

1. NFC Bridging the
Internet of Things
Paula Hunter. Executive Director
November 20, 2014

2. 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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3. 3
NFC Technology
Global Market Situation

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. 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
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Peer to Peer (Device to Device)
NFCIP-1, NFCIP-2 (ISO/IEC18092,
ISO/IEC21481)

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. NFC Phones Available Now
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• 275+ models
worldwide
• 500+ million in
market
• 1.2 billion by 2018

8. NFC Handset Shipments
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Source: IHS
Technology

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. 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. NFC Laptops
HP Envy x2 Lenovo ThinkPad Helix Sony Vaio Fit
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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
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13. New NFC Product Showcase
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http://nfc-forum.org/nfc-product-showcase

14. New Developer Program launched
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http://tapintonfc.org/

15. 15
NFC and Payment

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
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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
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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
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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
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20. 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

21. 21
NFC and Internet of Things

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. 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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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
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25. How NFC Supports the Internet of
Things
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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. 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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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
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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
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29. NFC in the Internet of Things
NFC-enabled appliances allow control from anywhere and
receive helpful Web content.
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30. NFC in the Internet of Things
NFC-enabled
vending machines
 Pay with a tap
 Earn loyalty
points
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31. 31
Convergence of NFC and IoT
“Playing Well with Others”

32. 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

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
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34. 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

35. Liaison Partners
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36. Thank You
… and Join Us!
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www.nfc-forum.org