Presentation by Koichi Tagawa of Sony, NFC Forum Chairman, from the Tokyo Tap Into NFC Seminar on February 9, 2016. Presentation goes over the latest market developments, the paradigm shift of what NFC brings, and the role of the NFC Forum.

1. Koichi Tagawa, Chairman, NFC Forum
Tap Into NFC Seminar, Tokyo
9 February 2016
NFC Industry Update

2. LATEST MARKET DEVELOPMENTS
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3. NFC MARKET GROWTH (CAGR)
3
43.7%
50.6%
2014 - 2019
Source: Technavio
2013 - 2019
Source: Transparency Market
Research
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4. NFC MARKET OPPORTUNITY
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.
By 2020, over 2b NFC devices will ship
globally

5. MOBILE NFC PAYMENT IS EXPANDING GLOBALLY
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• Supports open development
• Carriers on board
• HCE-based payment projects
all over the world
• Accelerating Contactless infrastructure investment
Full scale deployment of Mobile Payment in US
Apple Pay
• 1M users within 72 hours
• 2500 banks, 1M locations
• Expanded to UK in June
Android PaySamsung Pay
• Launched in S. Korea, US
• $30M/mo. In S. Korea
• NFC + MST

6. BEYOND PAYMENT
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Consumer Electronics Gift Card
Pairing SupportVending Machine

7. NEW IMPLEMENTATION
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Gaming Automotive
Wearable Logistics

8. PARADIGM SHIFT: WHAT NFC BRINGS
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9. FROM COMPANY DRIVEN TO INDUSTRY DRIVEN
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1 model, Global Market
Market Structure Shift
Regional base to Global base
NFC Popularity in B2C product
Industry Structure Shift
Vertical to Horizontal Integration
Standard Feature on Mobile OS
App Development Process Shift
MNO centric to Mobile OS centric
Product Enhancement
Card/RW to Mobile/Embedded device
Next Stage
Security: Chip base to total optimization
New feature: Wireless Charging
Economies of Scale
Industry Driven
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10. 2 BILLION CLASS PLATFORM
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● Impact on B2C market
 Billions of deployed NFC devices now available to support your service offering
 New use cases can be introduced on Day 1 over the platform
● Impact on B2B market
 Enables easy development of contactless applications without dedicated equipment
 Commoditization of acceptance terminal
 Market figure of FY2014: POS terminal 30M unit vs. NFC device 500M unit
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11. THE ABILITY TO CONNECT THE UNCONNECTED
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● It‘s The Internet of Things, not The Internet of
Electronic Things
● Need a way to embed intelligence in
unpowered, unconnected objects and things
● Need a way to gather data from unpowered,
unconnected objects and things

12. Small Form Factor
• Advantage of 13.56MHz, small antenna
• Possible adoption with limited space
Single Antenna
• Enable charging over NFC without any other
antenna implementation
Foreign Object Detection
• Fracture prevention of NFC Tag
• Auto suspension in case of object detection
Transmission Power Configuration
• Power optimization depends on target device
INTEGRATION OF COMMUNICATION AND CHARGING
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Field Power
Control
Receiver
Transmitter
Transmitter
6W1W
＋ α ？
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13. BENEFITS OF NFC CARD EMULATION
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• Carry all your cards, all the time
• Works on existing contactless card infrastructures
• Get your card issued via network
• Your card can be online enriched
• Your card can be bio-metrics authenticated
• Other device features, GPS, camera, etc., can further
enrich user experiences
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14. ROLE OF THE NFC FORUM
NFC Forum
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15. NFC FORUM MISSION
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The NFC Forum brings the
convenience of NFC technology to
life. We empower organizations to
deliver secure, tap-based interactions
with an intuitive, reliable experience
to users around the globe.

16. SPONSOR MEMBERS
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PRINCIPAL MEMBERS
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17. ASSOCIATE MEMBERS
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18. IMPLEMENTER MEMBERS
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NON-PROFIT MEMBERS

19. THE NFC FORUM REPRESENTS
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All of the world’s major:
● chip vendors
● payment service providers
● smart phone manufacturers
● mobile operating system providers

20. NFC FORUM SPECIAL INTEREST GROUPS
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Special Interest
Groups (SIG)
Technical
Committee
Japan
Task Force
Six Working Groups lead
technical discussions, and
create and maintain all
aspects of the NFC Forum
technical specifications.
Activities are open to all
members except Implementer
members, with voting rights
for Sponsor and Principal
Members.
SIG Working Group and Task
Force activities build value
across key market sectors.
Efforts are open to all
members.
Three Working Groups
manage the framework for the
NFC Forum Certification
Program and Plugfest Events.
Activities are open to all
members except Implementer
members, with voting rights
for Sponsor and Principal
Members.
This group was established to
promote NFC to this regional
market and overcome the
challenges of migration from
its legacy infrastructure. Key
players in the region have
been sharing NFC use cases
and best practices, as well as
identifying opportunities to
expand activities with the SIG
Working Groups.
Compliance
Committee
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21. LIAISON PARTNERS
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22. THANK YOU!
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