Embed Size (px)
Citation preview
Accelerating the deployment of NFC/RFID based mobile payment
RFID Europe Cambridge 2010
- 2 -
2006 Twinlinx history: Created in August 2006 by Jacek Kowalski, Founder and
former CEO of Inside Contactless, leading contactless chips supplier
Know-how: 50 men*year experience in the contactless and NFC markets,
chip technology license from Inside Contactless
Our Vision: Consumers will be attracted by adding new hardware features to
their mobile phones if such add-ons are easy to use, have a perceived value
and allow to personalize the back of the phone
Mission: Develop and provide to the market thin NFC enabled stickers
operating with most of the existing and future mobile phones
Location: Aix-en-Provence, France , Warsaw, Poland
About Twinlinx
- 3 - What are mobile payments
Mobile Payment is a new and rapidly-adopting alternative payment method
Basic service allowing electronic money transactions between 2 peers (human or
machine/terminal) enabled via mobile phones
There are four main models for mobile payments:
Premium SMS based transactional payments
Direct Mobile Billing (D2B)- popular in Asia
Mobile web payments (WAP)
Contactless NFC (Near Field Communication)
Combined market for all types of mobile payments is expected to reach more than
$600B globally by 2015, with $10B from NFC... Juniper Research
Uses
existing
infrastructure
- 4 - Mobile payment potential
~5 billion mobile phones vs ~1.8 billion bank accounts
Cash replacement
24h/24h Service
Ubiquity of mobile phones
Faster and more widespread internet access
Fast and convenient for Proximity payments
Solution for large unbanked populations
• Africa, India……..
Drivers
- 5 - Types of Mobile payments
P2P remittance
Mobile Top-up
Books, CD’s,DVD’s
On line subscriptions
Mobile rewards
Retail Purchase
P2P remittance
Digital content
Fast food
Coffee shops
Vending
Remote
(not at point of sale)
In-store (proximity)
(at point of sale)
Contactless/NFCWAP,SMS, M-App
Smart posters
M-Banking
Payment size ~*25$
Micro
Macro
*Limits differ from country
To country
PIN
NO PIN
(one tap)
(Double tap)
- 6 - Typical NFC based closed payment system
MerchantEnters
Amount on
His NFC phone
Or
Contactless
Payment terminal
Customer waves
His phone
infront
Of merchants
Contactless
Payment terminal
Merchants Phone
Sends request to
Payment company
Back office (BO)
Start
1 2 3
Customer enters
PIN
and confirms
Payment
Authorization
request sent to Payment company
4
Payment Company
validates request
1. Registered Customer
2. Registered Merchant
3. Customer account status
4. Customer account Balance
(sufficent funds)
5. Valid PIN
5SMS from Payment company
6
7
Authorization request
8
910
Failure Success
Transaction failure
SMS sent to
Customer
Transaction
success
SMS sent to
Customer
Transaction
success
SMS sent to
Merchant
Mobile
Payment
company
Merchant
& Customer
Already registered
with
Payment company
- 7 - Examples of existing payment schemes
- 8 - What are the barriers to Mobile NFC payment growth
Lack of phones
• Many trials but no real deployment expect Japan which has a proprietary
version
• Some phones produced but poor user acceptance
• People do not want to change their phones just for NFC
• They have not performed well
NFC in the phone is a complex ecosystem
• Conflicting interest between Telcos, Banks, transport operators
• NFC applications in the SIM does not please everyone
Reluctance of merchants to pay for NFC POS terminals
Transaction times for applications like public transport are too
slow
- 9 - What is MyMax?
Upgrades your mobile phone with NFC (Near Field
Communication) technology
Connects to the phone using Bluetooth
communication
Integrates a secure contactless chip for card-like
transactions
Powered by an integrated thin rechargeable battery
¨A revolutionary thin electronic sticker bringing NFC capability to your phone¨
- 10 -
Adding NFC to your phone
Area for logo printingSwitch
button
44 m
m
Thickness: 2.5 mm<2mm in 2011
34 mm
MyMax activation
1. Attach it to the back of the phone
2. Push the switch button and type code for pairing purpose
3. Receive an sms with link to the application midlet
4. Download application midlet from the server
- 11 - Different Operating modes
- Payment terminal- Metro gate- Access contol reader ….
Reader
Operation
Card
Operation
Peer-to-Peer
Operation
Choice of
secure elements ISO 14443 A/B
(ISO 15693)
- 12 - Advantages of MyMax sticker
MyMax sticker works with most bluetooth phones
• Immediate access to 80% of consumers for NFC application developers
• Capability to reach rapidly the critical mass of users
Architecture offering compatibility with any existing systems
• Immediate market and distribution channels for 500m contactless card users
• Preserves the existing food chain, security schemes and business models
Consumers acceptance
• No need to change your phone to get NFC payment
• MyMax decorates the back of the phone and presents branding opportunity
• MyMax can integrate other applications and features attractive for
consumers
- 13 - How can MyMax accelerate Mobile NFC payment
Problem #1. Lack of Phones
Over 200 phones
High and low end
Android & (iPhone)
Problem #3. Lack of Payment
terminals
Simple payment terminal
Low cost
Easy to deploy
Problem #2. Complex Eco system
Smart card model
Easy distribution
Flexible business model
Problem #4. User Acceptance
No need to change phone
Personalized sticker
Can be changed to
Another phone
- 14 -
Lot of Buzz and potential large market opportunity
Many players and different closed loop schemes moving away from usual banking and Visa/Mastercard open infrastructure
NFC will play a part where speed and convenience is important
NFC will allow to link payment to other applications
NFC integrated into the majority of Mobile phones is many years away
MyMax will be available in volume production in Q1 2011
Conclusion
- 15 - CONTACT INFORMATION
Steve Lewis, VP sales and Business Development • Cell: +33 660 475 440
• Email: [email protected]
Espace Descartes Bat B
425, rue Rene Descartes
13587 Aix-en-Provence, France
Tel. +33 (0)4 42 50 08 04
Fax. +33 (0)4 42 50 33 70
www.twinlinx.com
Twinlinx
