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PLACEHOLDER

COMPANY CONFIDENTIAL

Beyond cards, phones and terminals:

New payment form factors

Cards & Payments Asia 2015

Olivier Aretz, Senior Director, Head of NFC Infrastructure & Consumer Marketing

April 29, 20152

The evolution of payments

Source: the RWC Group

100,000

Years 3,000 B.C. 650 B.C. 960 A.D. Dark Ages 1950‘s Past 20 Years

Now Future

Pay anywhere,

anytime

using mobile

magic

Trends happening today in the Payment Industry

April 29, 20153.

› Anywhere and anytime

› E-commerce

› Simplicity and speed

› Loyalty and multi-

application

› (online) Fraud!

› From payment pipe to full

services (SaaS)

› Shift to electronic (… but

cash still king for small

transactions)

› EMV migrationSource: Money 2020,

BMO Capital, web

› Mobile devices

› Encryption technologies,

Tokens, HCE,

signatures,...

› NFC, BTLE, Biometrics,…

April 29, 20154

Form factors have followed the customer needs

and available technology

Source: the RWC Group

* More than 80 % of all NFC-enabled POS terminals use NXP technology

phones

ACCEPTANCE

DEVICE

wearablecardschecksnotescoins

purse registrar POS* PCmPOS, PC/Tablet,

Embedded

INSTRUMENT

Mobile POS (mPOS)Simplifying the access to the EMVco and the contactless world

April 29, 2015 COMPANY PUBLIC5.

Tablet serves as:

• user interface between the

customer and the merchant,

• modem to connect to

payment server.

Send the amount to pay

over via encrypted

Bluetooth to the mPOS

device. Amount appears

on the display.

Put the bank card on the

antenna of the mPOS

and complete the

transaction within

seconds.

The receipt will be

displayed and can be

send to the customer’s

phone via email or

SMS.

› Secure accessory to a phone or tablet

› Cost-efficient, portable and fast to install

› Small merchants, taxis, POS-multiplication

› 50M installed devices by 2018

Exemplary use case

5

7

9

11

13

15

17

2014 2015 2016 2017 2018 2019

Growth in sales for mPOS devices (in Million)

April 29, 20156.

In-app payment

› Credentials stored in secure

area (e.g. eSE)

› “Card almost present”

Computers and tablet Driving e-commerce and –ebanking

Source: company websites

Tap-to-pay

› Secure reader module inside the laptop

› Convenience and new recharge

services

› E-banking Key challenge: scalability

Pay now

Total: $ 8,99

Pay with ***3342

April 29, 20157.

› Pay without getting

anything out of your pocket

› Smartcard or embedded

secure element

› Multi-applications possible

(transit, access,…)

› 250M wearables expected

in 2018

› Challenge: scalability

Wearables Ultimate portability

Source: IHS, company websites

Smartcard

Closed-loop

Smartwatch

…and much more

Dedicated band

April 29, 20158.

› Separate secure module to

be integrated in larger

system

› Cost efficient and pre-

packaged solution

› Large range of application

areas, from IoT home to

car

› Challenge: certification

Embedded modulesAdding payment functionality to

almost every device

Source: ABI Research, Sep’14

CE NFC-enabled devices

Embedded Modules for:

- OTT, t-commerce, content/ gaming delivery

- Pre-paid metering

- Vending machines

- Cars: upgrades, trolling, e-commerce

April 29, 20159.

› Use NFC phone as payment

card reader

› Ultimate integration of mPOS

› For merchants and private

transactions

› Challenge to overcome:

device security

Smartphone integration: the holy grail?

NXP: your partner for any payment solutionFor more information, visit www.nxp.com

April 29, 201510.

mPOS reference demo› EMVco L1 & L2* pre-

certified

› Contact, Contactless, BLE

› Available HW schematics,

antenna design, Android

app, PCI report

Secure Services

Development Platform

(SSDP)› Android Loader Service

for easy mobile

onboarding

› Payment, transit,

access…

Portfolio of chips and

development boards› NFC front-ends CLRC663,

PN518

› Contact reader TDA family Wearable platform

POS ref design and SDK› Contact+contactless reader

› EMVco 4.3 CT and 2.3.1RF

› Full software package

› Extensions for MIFARE

› Source code, Gerber

available

* Via 3rd party

Track record in

security applications

#1 in various areas reaching

from NFC in mobile to bank

cards and electronic identity

documents

April 29, 201512.

Change in payment form factor

Source: Accenture