1. Beijing Mobile Monday #35 |
Mobile Commerce, Payment & NFC
April 26, 2010 @ Cheung Kong Graduate School of Business
Mobile Payment
for Smart Phones
The REAL Killer Application!
Karl J. Weaver 魏卡爾
OEM/ODM Handset Business Development Manager
手機事業發展部經理
Gemalto Beijing 金雅拓北京
Karl.weaver@gemalto.com
2. Who is Gemalto?
The worldwide leader in SIM card solutions
1+ billion
SIM cards
delivered in 2007. Gemalto is
the undisputed market leader
400+ 150+
Mobile Telecom OTA platforms
Operators Gemalto has the largest installed
based of OTA platforms for GSM
Gemalto is delivering SIM cards to networks on the field
all the largest operators in the
world
3. Gemalto Telecom innovation
business line
MULTIMEDIA MOBILE CONVERGENCE SIM
MOBILE TV Smart
Smart SIM CONTACTLESS NFC For Smart Dongles,
SIM/Micro SD card
solutions Smart SIM Modems, 3G Netbooks
solutions
solutions solutions
1 Operator Property
2 Secured End-users Authentication
3 Personalizable
4 Secured & Portable Environment
5 Remotely manageable through Over-the-Air Server
4. Smart Phones and the (short)
Road Ahead!
Quote:
“We always overestimate
the change that will occur in
the next two years and
underestimate the change
that will occur in the next
ten.” -Bill Gates, Chairman，Microsoft Corp.
Reference, date
5. Smart Phones – Consumers need what?
WANTED: communication tools (voice, SMS, email, and lately social networks).
WANTED: convenient services and new capabilities to ADD VALUE to their daily
life – like ease in commerce, better transportation options and educational tools
(lifestyle applications).
WHERE IS THE PROBLEM IN THE INDUSTRY?
Carriers: focus on low hanging fruit – Infotainment services, whereas the real
industry drivers for the next few years should be mobile commerce and payment.
Third-parties (banks, transport companies, service providers): Are confused by the
fragmentation of development platforms and do not know how to duplicate existing
services (payment..) into the mobile World efficiently and with a large reach.
Reference, date
6. The example of contactless payment as
a key lifestyle mobile application for
China Unicom in Shanghai in 2009
7. Contactless Payment
This presentation focuses on Mobile Payment because of Gemalto’s
expertise in the wireless (Telecom operators) Banking and Transportation
sectors for proximity payments (mobile contactless).
2009 was the year pre-commercial roll out of NFC handsets occurred in
Asia, 2010 is shaping up to be the real commercial launch!
NFC in Asia is primed for SWP (Single-Wire-Protocol) SIM deployment!
There are untapped opportunities for Smart Phones not just for payment
applications but also in consumer relationship applications (loyalty,
couponing, direct marketing, LBS services,..) for all parties.
8. Contactless Mobile NFC applications
Transport
Pass, Access,
Payment …..
Smart Poster
& TAG
Reading..
Reader Mode
Card emulation mode Can Work, even if
Mobile’s Battery has
been turned Off
Transport Ticketing
P2P data
exchange
Payment Smart Poster
Peer to Peer mode Health card
Loyalty
9. Payez Mobile: large mobile payment project with 6
banks, 4 MNOs, Visa and MasterCard
1000 consumers, 200 stores in two cities: Caen and
Strasbourg cities
Objective: prepare the commercial roll out
Gemalto offers TSM services and SIM cards. Multiple
banks and multiple operators connected to Gemalto.
Complete lifecycle of NFC application
OTA Personalization
Application download
Security Domain management
10. Results from Payez Mobile
Objectives: build the basis for a real deployment
Test consumer experience
Validate the target architecture (SIM as secure element, OTA banking perso)
Results: it works!
A great consumer feedback >90% satisfaction
The project was launched on time (Partners selection: March 2007 launch
in November 2007)
Next steps: project continues to prepare the commercial roll out
A new bank was introduced
New merchants (supermarkets)
Gemalto TSM contract was renewed
New handsets will be proposed
Working groups on certification and interoperability
11. What is required for mass deployment?
Progress status
End-user acceptance
Excellent feedback from pilots
End-user to be reassure in case of loss
Business Model -> Trust and cost
Win-win model for MNOs and Service Providers
Clear definition of roles & responsibilities
$
Interoperability
Standards
Compatibility with existing infra
Mobile phones
Not just one but a complete range is needed!
12. Road blocks to NFC Handset Development
No designed and customization for mobile payment and mobile
commerce.
Android, Windows mobile, RIM high-powered OS platforms are forgetting
what helps operators make money.
As a mobile payment tool, still a long way to go to be designed to interact
well with other environments.
Handset vendors unable to see other universes
Problem of acceptance in the Banking world without adoption of SWP.
Mobile Commerce needs standardized payment technologies based on
the Smart SIM card as the secure element – defuses fragmentation
Reference, date
13. Chicken and Egg experiences
(Caused by both partner’s premature expectations)
ou C
o y NF
D ve ts
ha ndse ing? G
ha test Pu ive
Start for W r c me
qu hat has a
fo an is e O
re tit yo r
ca y
st ur der
NO ? ,
YES Build NFC
functionality
into mobile
handsets
sped up
adoption of
mobile
payment
Wireless OEM Handset
Operators manufacturer
Reference, date
14. Smart Phone Fragmentation in
Chinese markets
Multi Smart Phone OS platforms– confusing feature
sets not targeted to specific users, which to choose?
Shan Zhai Ji vendors are also moving up to build 3G
handsets using MeditaTek’s 3G SoC chip for domestic
use
Smart Phone fragmentation will occur because no way
to build an App store, ways to trial, validate, test in
operator networks -continued fragmentation.
15. Standards Drive Mobile Payment Ecosystem
SWP NFC simplifies security testing for financial
institutions & banks.
SWP NFC simplifies RF antenna testing for
handsets designed to incorporate Contactless NFC
RF chips. (Independent of the application).
SIM card Trusted Service Management models will
be incorporated to navigate banks, operators,
transport firms.
16. Single Wire Protocol & NFC architecture
SIM
SIM OTA
- - Application logic (java)
Application logic (java)
- - User credentials
User credentials
- - Open Platform enabled
Open Platform enabled
NFC chipset ==CLF
NFC chipset CLF
- -RF layer
RF layer
- -Multi-Protocol (ISO 14443 or
Multi-Protocol (ISO 14443 or
proprietary …
proprietary …
- -CLF providers : :Inside contactless, ST,
CLF providers Inside contactless, ST,
NXP, Samsung
NXP, Samsung
Standardized ETSI 102.622
HCI - Host Controller Interface
Communication interface between Handset, NFC radio
chipset & SIM
Standardized ETSI 102.613
Recommended and used by
SWP - Single Wire Protocol
1.5 Mbit/s
Battery off mode
Open solution (free IP)
RF antenna
RF antenna
17. Replace your wallet with your
mobile phone – Japan did it!
It worked out because of a national standard across
all operators and all phone makers
DCM launched mobile wallet service,Osaifu-Keitai(wallet-mobile phone) in 2004.
Wallet application embedded in the FeliCa chip (Sony), supports credit cards,
operator billing, prepaid e-money, transport ticketing and postpay services.
60 million with Mobile Felica-enabled handsets.
35 million are customers of NTT Docomo's i-mode service, 10 million are signed up with KDDI and a
further 10 million with Softbank Mobile..
It took about 5 year for growth to occur in Japan,
Japanese vendors are migrating over to SWP-based Mobile payment now
18. Who will influence NFC handset
development the greatest in 2010?
1) Apple?
2) Google?
3) Microsoft?
4) RIM?
5) Nokia?
6) Samsung?
7) HTC?
19. Apple iPhone Patents Filed –
The secret is out now!!!!
Apple’s Imagination for NFC:
Using the accelerometer on the handset to change the
orientation of what’s on the Macbook screen.
Lock and unlock your Macbook using your iPhone.
Unlock doors using iPhone as a keycard
20. NFC enabled iPhone [And iPod Touch, iMac, Apple
TV and Apple Remote]
Apple’s untethered future
22. Control of All In-Home Electronics
•iPhones will
eventually
controlling every
single
electronics
device in the
home
•iPhone will
work with MS
Xbox 360, an
HDTV and Apple
TV remote.
23. Mobile Payments business
around iTunes credits?
Apple sees iTunes as one of the key types
of account that could be used by
consumers, with several of the figures
clearly showing iTunes as one of the
payments options, along with bank
transfer, credit and debit card options.
24. New iTunes "Concert Ticket +" System
Apple wants to enter the electronic concert and event ticket
business via a new application and system simply called
"Concert Ticket +."
25. iTravel: Travel App for the iPhone
"iTravel“ is a new travel check-in application for Airlines in new
ticketless system roll outs planned in the coming years
Airline check-in and baggage identification, advanced
electronic ID, car rentals, hotel and airline reservations
26. Windows Tiles and NFC Connectivity in sight!
Windows OS now supports
Mobile NFC.
New Widows tile approach UI,
built around Zune and xBox
functionality.
Gemalto is the only Gold
Embedded Smart SIM card
partner of Microsoft, and
expects to work closely when
they move forward with NFC.
27. HTC - Promising Developments
with Contactless NFC
Developing 3G Google Android (SWP-
based) NFC Smart phone with LBS.
Tattoo” Smart phone uses NFC
Easy card glued to back of
handset as first phase, for
possible future NFC flower tag
services during the 2010 Taipei
Int’l Flora Exhibition
30. Data Innovation Study Finds 70% of Smart Phone
Owners Use Mobile Financial Services
a large number of respondents were interested in the concept of a mobile
wallet. Although no commercial mobile wallet solution is available in the United
States today, nearly two-thirds of respondents stated they would be interested
in this type of technology and service. Only 10% stated they were not interested
in a mobile wallet, and 25% said they were not sure, which could indicate that
they need more information on the service.
