Promoting collaborative mobile payment by using NFC-Micro SD technology

Szu-Hui Wu Institute of Information Management

National Chiao Tung University HsinChu, Taiwan

apfel.hui@gmail.com

Chyan Yang Institute of Information Management

National Chiao Tung University HsinChu, Taiwan

professor.yang@gmail.com

Abstract—Near Field Communication (NFC) is a new short-range wireless communication technology that enabled simple , security and intuitive peer-to-peer communication between NFC-enabled devices. The advent of NFC has given rise to several interesting applications under short-range radio technology. Among the interesting applications, mobile payment is the first application in the marketplace. In the research, we proposed NFC-Micro SD technology, a new technology in NFC field. The new technology creates a more convenient environment and lower threshold for mobile payment to enter in. The collaborative mobile payment solution follows the original security mechanism of the traditional credit cards operation, and improve the value of the partners in the collaborative value chain, included the hardware produced and software development. The two modes, passive mode and active mode, provided by NFC-Micro SD technology also provide the reliable transaction for the mobile payment. In summary, the NFC mobile payment solution via NFC-Micro SD technology improves the higher acceptance, using willingness, and loyalty of the partners and users. It also makes the value chain as the collaborative solution. Thus, the NFC mobile payment via NFC-Micro SD technology can be seen as the better mobile payment solution and will lead the development of the mobile payment market.

Keywords-Near Field Communication (NFC), Mobile Payment, NFC-Micro SD, Collaborative Solution, Mobile Bank

I. INTRODUCTION

With the growth of consumer electronics, Near Field Communication (NFC) is an emerging and compellent technology nowadays. It characterized as a short-range radio communication technology with much potential applications. The users can communicate to each other with NFC-enabled devices. The users only simply put the NFC-enabled devices close to each other, wave them, or touch them, the transaction will be finished. NFC allows users to exchange the data and service between two NFC-enabled devices by identification passing. It also can apply to payments, retailing, ticketing, electronic key, healthcare, commercial applications and many applications in life.

The market for NFC-enabled devices is greatly huge. According to the research by Juniper Research, it is estimated the market of NFC will facilitate transactions value at US$74bn by 2015 [1]. The huge market emphasizes the importance of NFC, and attracts more and more enterprises to promote NFC applications to get the bigger market share.

There are three main NFC applications: Authentication, Payments, and Data exchange. Among the applications, mobile payment is the first application in NFC field. Mobile payments are the payments through mobile devices in wireless environment, and are considered as the accelerator of M-commerce. The potential profits from implementing mobile payments in the marketplace are huge. Juniper Research [2] [3] found that the NFC retail payments market will exceed $180bn globally by 2017, more than a seven-fold increase over 2012. NFC payments become the next popular application in NFC field.

In the research, we discussed the NFC mobile payment via NFC-Micro SD technology mainly. We found in practice that the key players and users accept NFC mobile payment more easily via NFC-Micro SD technology. NFC-Micro SD solution for NFC mobile payment can increase the value of the partners in the value chain, and make them as the collaborative partners to improve the loyalty and using willingness.

II. LITERATURE REVIEW

A. Near Field Communication Near Field Communication (NFC) is a standard based

short-range wireless connection technology that enabled simple and safe peer-to-peer interconnections between electronic devices [4, 5]. Based on the Radio Frequency Identification (RFID), it uses the magnetic field induction to communicate between electronic devices. RFID system comprise of two components, the transponder (it also called contactless target or simply tag) and the transceiver (it also called read-write-device or simply reader or writer) [6]. RFID is an asymmetric technology because only the reader/writer device can initiate the data transmission [7]. On the contrary, NFC allows the two-way communication between the two devices.

NFC is based on RFID technology and uses the same communication mechanism. It combines the benefits of Radio Frequency Identification (RFID) and wireless communication technologies, included Bluetooth, WLAN, IrDA [8]. The NFC standards were proposed in 2003 [9]. It operates in the unlicensed frequency band of 13.56MHz. The data transmission rate of NFC is up to 424 kBit/s between devices over a 10 centimeter (4 inches) distance. The transmission module inside can operate as the reader/writer component to access the tags, and the contactless smartcards

2013 IEEE 10th International Conference on Services Computing

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based on proximity-card standard (ISO 14443), like Mifare (included NXP, Gratkorn, Austria) and Felica (included Sony, Tokyo, Japan) products [7]. It combines the smartcard interface and the reader in a single device. NFC devices could communicate with the existing smartcards, the contactless readers, and support two-way communication between the other NFC-enabled devices in active and passive mode.

Basically, NFC function enabled data exchange by taking two NFC-enabled devices close together. For any device with NFC tag built-in it, the device possesses the NFC function. NFC enabled the devices to use the tags and connect to them by the antenna. The antenna makes NFC-enabled devices exchange the data. NFC communication via the magnetic field induction where the antenna are both located within near field and form an air-core transformer [5]. NFC devices are unique; therefore they are capable of changing the mode of operation in accordance with the purpose of usage.

NFC devices can send and receive the data at the same time. The basic idea of NFC is to introduce a communication session by an intuitive, easy to operate, and secure way. Users only simply wave the device closed the device or point to the device accepted the NFC signals, the transaction can be completed immediately. Therefore, NFC is appropriate to be integrated in the consumer electronic devices, like mobile phones, Tablet PC, MPs, Personal Digital Assistants (PDA), watch, digital camera and so on. NFC really has a wide application in every aspect.

Nokia made the first available mobile phone with NFC technology [10]. To enable the NFC technology, users have to equip a special NFC shell with the mobile phone. It makes the mobile phones can read data from RFID tags as well as communicate with other NFC-enabled devices. As the service is provided, the build-in application is initiated for a phone call, sending the SMS, or connecting to a defined web service.

B. Mobile Payment 1) Definition of Mobile Payment

Mobile payment is the transaction in which a mobile device is used to initiate, authorize and confirm an exchange of financial value in return for goods and services. According to the definition of the Mobile Payment Forum [11], the mobile payments are the transactions with monetary value that is guided through the mobile network by diverse mobile devices. [12] considered mobile payment means that users conduct payment for bills, goods and services by mobile terminals, such as mobile phones. Pousttchi [13]defines mobile payments as a transaction that the consumers use mobile communication techniques by mobile devices for initiation, authorization, or completion of payment. In brief, mobile payment is a service method or a transaction that allows users to pay for goods or services by using the mobile devices.

The European Commission Green Paper [14] defines mobile payments as the payments made by a mobile device, included the remote payments (e.g. internet or premium sms-based payments), and payments at the point-of-sale by the

specifically equipped mobile phones (e.g. contactless technologies). Contactless technologies, such as Radio Frequency Identification (RFID) and Near Field Communication (NFC) are emerging as proximity payment means. These technologies generally support the communication of the specific chip or tag in the smartcard of the mobile device and connect to the sale terminals [15]. The direct participators of remote mobile payment contain the financial institutors, the mobile operators, third parties, Certificate Authority (CA) organizations, business organizations and the mobile users, etc.

2) Advantage of Mobile Payment Comparing to existing offline payment, the main

advantage of mobile payment is ubiquity. [16] Users can conduct payment via their mobile devices conveniently. Ease of use and convenience are usually stressed as the significant advantages of the solutions. Consumers can pay for the goods or services simply by waving or touching the phones at the terminal reader. [17]

According to [18] [19], mobile payment service should have the following conditions in order to be trustworthy in the markets:

• Simplicity & Usability: The application has an ergonomic GUI, with the smaller learning curve. It can improve the customer satisfaction.

• Universality: The service contains micro-payments and macro-payments, and could operate everywhere.

• Interoperability: The service could interact with other systems.

• Security, Privacy and Trust: It's the most important part which the users will concern. The security mechanism and how to protect the data of the users is very important.

• Cost: The whole cost, included the usability cost and deployment cost, is lower than the existing payment mechanisms.

• Speed: The customers and merchants can accept the speed of the mobile payment execution.

• Cross border payments: The service is widely accepted.

Venkatesh [20] considered the features of the acceptable payment system as follows:

• Usable Method: The mobile payment function must be friendly to the users.

• Present in all places: The payment contains micro-payments and macro-payments. The service must be executed everywhere.

• Service Oriented Architecture: The implemented system is based on the open technologies.

• Safety, Seclusion and Faith: The system is safe, and the data of users is protected.

• Charge: The service is cheaper than other existing payment methods.

• Speed: The consumers and businesses can satisfy with the speed of performing mobile payments.

• Global Payments: The service is available world-wide.

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With the mobile devices, the mobile payment service can be executed everywhere. The emerging technology, NFC, has the security mechanism and is designed for the identification, payment, data exchange applications. The technology also has the lower cost than other mobile payment technologies. Thus, the mobile payment service will have the rapid growth with the NFC technology.

3) Classification of Mobile Payment Mobile payment methods currently may be classified

according to the basis of payment. Mobile payments are typically differentiated by technology, transaction size, location, and funding mechanism [21].

On the basis of technology: [21] • SMS, a mobile application or a browser. • Bar codes or a contactless interface with chip-

enabled payment technology, such as NFC-enabled mobile phones.

On the basis of transaction size: • Micro Payment • Macro Payment According to [19] [22] there are three different models

available for mobile payment solutions on the basis of payment:

• Bank account based • Credit card based • Telecommunication Company billing based According to [18] [21], the mobile payment can be

classified to the following types on the basis of funding mechanism:

• Account Based • Real time • Pre paid • Post paid • Smart card based • Credit card based • M POS • Mobile wallets • P2P Payments In summary, the mobile payment currently focuses on

daily transaction in life. In the research, we'll discuss the mobile payment in NFC, the contactless technology, especially in credit card based and other based mechanism. The convenient technology can be workable in common in daily life.

III. NFC TECHNOLOGY

A. NFC Standards In fall 2002, NXP technologies (Philips Semiconductor

Operators) and SONY reached agreement to develop Near Field Communication (NFC) technology. The two companies submit the draft specifications to ECMA International, which is responsible for standardizing information and communication system. NFC is an open platform technology which is standardized in ECMA 340 (ISO/IEC 18092), ECMA 352 (ISO/IEC 21481), ECMA 356 (ISO/IEC 22536), ECMA 362 (ISO/IEC DIS 23917) and ECMA 373 [4]. The standards are as follows:

• ECMA 340 (ISO/IEC 18092): The standard specifies modulation schemes, codings, transfer speeds, and frame format of the RF interface, and anti-collision. It also specifies the active and the passive communication modes and data exchange methods for wireless interconnection between the close devices and access to mechanism to detect and select one communication mode out of three possible communication modes.

• ECMA 352 (ISO/IEC 21481): The standard specifies the mechanism to detect and select one communication mode out of three possible communication modes.

• ECMA 356 (ISO/IEC 22536) and ECMA 362 (ISO/IEC DIS 23917): The two standards specify RF-test methods for ECMA 340 devices with antennas fitting within the rectangular area of 85 mm by 54 mm.

• ECMA 373: The standard specifies the signal wires, binary signals the state diagrams and the bit encodings for three data rates between a transceiver and a front-end.

In March 2004, NXP, SONY and Nokia founded a non-profit NFC Alliance, NFC Forum. It contains more than 150 members included intelligent chip manufacturers, banks, credit card issuers and so on. Its major members: HP, NXP (Philips), Sony, Texas Instruments, Nokia, NEC, Samsung, Motorola, MasterCard, VISA, Panasonic, Microsoft, Gemalto, Vodafone, Siemens, Giesecke & Devrient, Infineon; in other words, it contains the key players of the mobile communication and consumer electronics market. NFC Forum also establishes 15 important specifications and is authenticated by ISO, IEC, ETSI and ECMA.

B. NFC Applications Near Field Communication is a contactless

communication, and NFC connectivity brings the emergent applications in life [23]. The developments of NFC focus on the transaction activities of mobile commerce in recent years. NFC technology can improve the convenience and quality in life and achieve the goal of the intelligent life. There are three main applications:

a) Identification: NFC is also an identification technology. Identification is also the most important application in NFC field. The NFC devices store the identification data first, and can use for access control to the building, home, workplace, etc. Other applications are login information system, ticketing, product tracking in supply chain, electronic anamnesis, identity authentication, etc.

b) Payment: Payment is the first commercial application in NFC field. With the security mechanism of near field communication technology, payment can be trusted by the consumers. The data of credit cards or e-wallet will store in NFC chip in advance. Then the users can pay for anything directly.

c) Data exchange: NFC technology has the characteristics of “touch and connect”. It means two NFC

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devices can connect with RF induction, and permit peer-to-peer data transmission. The applications contain home automation, particular information collection (e.g. a tourist path, museum’s visit, advertisement poster, marketing coupon, Kiosk, etc.). NFC technology will make easy to transfer the detailed information.

The comparison between the three main applications is shown as follows:

TABLE I. COMPARISON TO THE MAIN APPLICATIONS

Identification Payment Data Exchange

Target Market

Tourist/ Government/ Healthcare/ etc.

Financial industry

Enterprise/ Digital Content/ Marketing Poster

Features of Main Market

Government: is more conservative; Hospitals need corresponding policy; tourist has smaller market scale.

Emphasize transaction security, more regulations norms, high homogeneity

Entertainment has smaller market scale, and marketing has bigger market scale.

Demand and Growth Potential

Medium High Medium

Price Trends & Development Sequence

The extended industry after payment

Price will rise first and then fall (because of competitors joining)

The extended industry after financial/ tourist/ government/ healthcare.

Life Cycle Decline after three years growing

Decline after five years growing

Decline after two years growing

Among the three main applications, payment is the first commercial application in life. The more convenient mobile payment methods with NFC can attract more consumers to use. The financial industry can release the NFC financial goods, e.g. credit cards with NFC, the mobile banks, in order to provide the multiple, easy, and safe service through the NFC technology to the users.

The second commercial application is identification. After the payment application, the users are familiar with NFC solution and have higher acceptance. At this time, identification application can be introduced in users' life. The third application introduced is data exchange application. Then the NFC applications can be seen everywhere and be the daily solution in life.

C. NFC Technology Development NFC technology is considered the mainstream

technology of the next generation for mobile phone products. Many organizations collaborate with the NFC Forum actively [24]. The handset manufacturers and network operators all launch the NFC-enabled products to strive for the customers. The competitive condition results in several kinds of the NFC products to apply in mobile phones. There are multiple ways by which the mobile device can be made NFC-enabled, included NFC-Tag, NFC-Mobile Phone, NFC-SIM, NFC-SWP SD and NFC-Micro SD.

a) NFC-Tags: It’s a form of sticker. While the sticker is attached to the device, it can be used as the NFC-enabled device. The stickers can be considered read-only, read/write, or write through a special tag writer. The type of stickers is according to the intended use.

b) NFC-Mobile Phone: The handset manufacturers choose several types of mobile phones and place the NFC chip into the mobile phone. The manufacturing process makes the mobile phone as NFC-enabled device.

c) NFC-SIM: The flexible NFC chip is added on the subscriber’s original SIM card which could provide additional NFC services and use the application and services from the third party developers. However, the chip is sensitive to the electromagnetism, especially the battery of the mobile phone. To solve the problem of the electromagnetism, the flexible flat cable has to add on the NFC chip to block the impact of the battery.

d) NFC-SWP SD: The technology integrates NFC chip into Micro SD card. Because the NFC chip integrated is with no antenna module, the integrated Micro SD card must add additional RF contacts on it. The additional RF contacts can communicate with RF antenna in mobile phones to transmit NFC signals.

e) NFC-Micro SD: The most important feature is NFC chip packages the antenna module inside in advance and is built-in the Micro SD card. Therefore, NFC-Micro SD technology doesn’t have to change the size of NFC chip and Micro SD card, and can apply in every kind of phones.

Among the technologies, NFC-Mobile Phone, NFC-SIM, NFC-SWP SD and NFC-Micro SD all have created the applicable products. The comparison is shown as follows:

TABLE II. COMPARISON TO THE NFC TECHNOLOGES

NFC-Mobile Phone

NFC-SIM

NFC-SWP SD

NFC-Micro SD

Size Mobile Phone Specifications

- 11x15x 1.1mm

11x15x1.1mm

Input Voltage

Mobile Phone Specifications

3.3V 3.3V 3.3V

ISO 7816 Support Support Support Support ISO 14443 Support Support Support Support Frequency 13.56MHz 13.56

MHz 13.56 MHz

13.56 MHz

Antenna NFC Mobile Phone

External flexible cable

NFC Mobile Phone

Built-in

Memory Capacity

Mobile Phone Specifications

N/A 4/8 GB 4/8 GB

Distance <10 cm <10 cm <10 cm <10 cm Supported Device

Special Mobile Phone

Special Mobile Phone

Special Mobile Phone

All Mobile Phone

Card Issuer Handset Manufacturer

Telecom Operator

Bank Bank

Acceptance low less medium high Cost high high low low

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IV. NFC-MICRO SD TECHNOLOGY

A. The advantages of NFC-Micro SD technology In mobile phone market, the trend is slim and light

phones with more functions. The consumers like the new and interesting mobile phones, the phenomenon results in such high replacement rate of mobile phones. The two NFC technologies, NFC-Mobile Phone and NFC-SIM both limit to the special mobile phone types. It will make the consumers feel bored and reduce their willingness to use. So the two technologies have the few acceptances for the users.

Micro SD card is designed for satisfying the rapid growth mobile equipment and the market demand of the Tablet PC. It is applied in mobile phones and other consumer electronics widely and has lower cost. Thus, combining NFC chip and Micro SD card not only has the lower cost, but also keeps the original convenience of Micro SD card for users. As long as the users own the Micro SD card with NFC function, they can make the favorite mobile phone to become NFC-enabled phone by inserting the integrated card. No doubt, it has become the trend in NFC field.

The two technologies, NFC-SWP SD and NFC-Micro SD, both correspond to with the trend that combining NFC chip into Micro SD card. In chapter 3, we discussed the characteristics of the two technologies. NFC-SWP SD technology has no antenna module integrated, and has to depend on the RF function of mobile phone to transmit NFC signals. The technology has to add additional antenna attached to enable NFC function. However, there are parts of mobile phones with RF function. It also causes finite acceptance of users.

Comparing to NFC-SWP SD technology, NFC-Micro SD technology has the antenna modules packaged inside. It’s the unique patent. With the patent, there’s no additional antenna attaches on the chip to communicate with RF function of mobile phones. On the contrary, the NFC-Micro SD technology could transmit the message by the built-in antenna. Thus, the technology can maintain the size of Micro SD card, and apply in all kinds of mobile phones, as shown in Fig. 1. Users could only insert the NFC-Micro SD card into the phone, and the NFC function is enabled. By using the apps, users can activate the NFC function. So NFC-Micro SD technology is not only the trend, but also the leader in NFC field.

Figure 1. The structure of NFC-Micro SD technology

B. The sturcture of NFC-Micro SD technology Every NFC chip contains four blocks on the substrate,

included Die 1, Die 2, Die 3, and Antenna module, as shown in Fig. 2.

Figure 2. The structure of NFC-Micro SD technology

The first block (Die 1) is the memory, standard NAND Flash. It processes the reading and the storing of data. The second block (Die 2) is Memory Card Controller with OTA (Over-the-Air) Support. It controls the data flow. The third block (Die 3) is the SmartCard Controller. It operates encryption, decryption and transmit the corresponding payment ways. The fourth one is the miniature Antenna module, and it’s responsible for transmitting the signals.

The unique patent of NFC-Micro SD technology is packaging the antenna in the chip. To package the antenna module in the chip, NFC-Micro SD technology uses the miniature 13.56 MHz Antenna Coil. The solution can solve the problem that there’s the limited space in the chip.

For the function of the NFC-Micro SD technology, it contains several functions as follows:

a) JCOP: In the chip, Java Card OpenPlatform, named JCOP, is embedded. There is the Virtual Machine (VM) of Java Card inside, included NXP IC encryption module. It makes the chip to encrypt the data by the highest encryption standard of hardware ZAL5++ while it transmits. The encryption algorithm contains DES/ AES/ RSA/ PKI/ SHA-1/ SHA-224/ SHA-256/ MD5/ CRC and so on.

b) Perso Function: Perso function means upload the personal data, included the identification data, the finance data and so on. It uploads the data on the chip by Applet/ APDU in JCOP.

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c) Mifare Function: Mifare is the NXP-owned trademark of a series of chips widely used in contactless smart cards and proximity cards. It covers proprietary technologies based upon various levels of the ISO/IEC 14443 Type A 13.56 MHz contactless smart card standard. By Mifare function, the intelligent chip could provide the more applications and communicate to each other.

d) Over-the-Air (OTA) Function: Because of the embedded hardware encryption mechanism in the chip, the enterprises (e.g. the banks) can do the identification directly without the complicated procedures. It can improve the convenience and the willingness to use.

By the unique processing and design, NFC chip with antenna module can be integrated into Micro SD card successfully and provide the security environment in application. The features help the development of NFC mobile payment via NFC-Micro SD technology.

C. Mobile Payment Application with NFC-Micro SD Solution Comparing to traditional payment and online payment,

the main advantage of mobile payment is ubiquity. The traditional payment is the transaction via the credit cards and cash. The users have to bring more credit cards and use it based on the different preferences of the credit cards. The credit cards service brings not only the convenience but also the trouble in life.

With NFC mobile payment, the users can conduct payment via their mobile devices anytime and anywhere. However, slow responses and security mechanism are the difficulties to promote NFC mobile payment.

We mentioned that NFC-Micro SD technology not only provides the higher security mechanism, but also applies in every type of mobile phone with the unique patent. The consumers can transact by NFC-enabled devices without carrying many credit cards. The NFC-enabled devices can replace the credit cards and the cash. About the credit card operation, it involves in the confidential personal information. The card issuers are usually the banks. The banks hardly give the sensitive personal data to other handset manufacturers and mobile network operators to promote mobile payment.

By NFC-Micro SD solution, the banks can keep the confidential personal information and follow the original procedure. The least change improves the willingness and acceptance of the card issuers.

Figure 3. Collaborative mobile payment in NFC-Micro SD solution

In order to follow the original procedure of card issuing, NFC-Micro SD provider only offers the empty NFC-Micro SD cards and specific recording machines to the Perso Company, like line 1 in Fig. 3. In the original card issue procedure, the banks (the card issuers) entrusts the regional Perso Company to input all personal data into the credit cards. In Fig. 3, as the original procedure, the banks provide the confidential personal information to Perso Company, like line 2 shown. Perso Company will record the confidential data in the SmartCard Controller in NFC-Micro SD card according to the requirement of the banks. After Perso Company finish recording, Perso Company will give the cards to the banks, like line 3 shown. With the procedure, NFC-Micro SD solution can enter in the financial industry without more obstacles.

By OTA function NFC-Micro SD provides, the banks can do the identity authentication directly, without identifying face-to-face or by telephone. The OTA function saves more cost and time for the card issuers. The OTA function also helps the consumers can not only consume in the physical stores, but also enjoy the virtual shopping in Apps online shopping mall.

Each NFC-Micro SD card includes several credit cards inside. To choose the certain credit card to do the payment, it depends on apps to choose the credit card would like to use. In Fig. 3, the whole procedure also contains the system development. In system development procedure, the participators are NFC-Micro SD provider and information service provider. NFC-Micro SD provider is responsible to assist the information service provider to develop the system and apps, like line a in Fig. 3. The information service provider will develop the apps according to the requirement of the banks and managed interface, information system for the banks, like line b in Fig. 3. The platforms of apps contain Android, iOS and etc. to support all types of mobile phones.

The consumers choose the App (e.g. ICash) on their mobile phones, and open the App. After inputting the account name and password the consumers defined in advance, the consumers can choose the function (e.g. credit card transaction, mobile bank, ticketing etc.) and the credit card would like to use. Then the consumers can put the cellular phones close to the reader and conduct payment immediately or operate the mobile bank. The flow chart of App transaction is as shown in Fig. 4. With the easy use and convenient apps, the software can improve the interest and willingness of the consumers.

Figure 4. The App chart

NFC-Micro SD Provider

Perso Company

Banks (Card Issuers)

Information Service Provider

System Development

NFC-enabled Credit Card issued procedure

12

3

a

b

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NFC-Micro SD solution provides two operation modes to help NFC mobile payment:

a) Passive Mode In passive mode, NFC-Micro SD solution is responsible

to send the signals. While the users want to execute the transaction, they have to put the mobile phones close to the flexible POS machine or make the mobile phones touch the flexible POS machine. The flexible POS machine uses the communication network with the banks, and executes the transaction. The flow chart is shown as Fig. 5.

For the existing stores, the original flexible POS machines and the original network to the banks don’t have to change. It can follow the security mechanism currently. It will improve the loyalty of the consumers, the merchants, the banks and the partners in the payment chains.

Figure 5. Passive mode for NFC mobile payment

b) Active Mode In active mode, NFC-Micro SD solution can not only

send the signals, but also receive the signals. The difference between passive mode and active mode in mobile payment is that the flexible POS machines can be inexistent. The merchants can use the NFC-Micro SD mobile phones as the mobile POS machine and execute the transaction. The active mode is well received by more merchants for micro-payment.

The flow chart of NFC mobile payment is shown as Fig. 6. The difference between passive mode and active mode is the merchant’s NFC device has to ask for the authentication before it sends the requirement of transaction to National Credit Card Center of R.O.C. The action of authentication can permit the merchant’s NFC device as the POS machine and execute the transaction. After the transaction, the NFC device won’t be as the POS machine until the next transaction.

Figure 6. Active mode for NFC mobile payment

Therefore, NFC-Micro SD solution is suitable for the mobile payment, especially integrating with credit cards, and mobile banks operations. The solution is helpful to the macro-payment and micro-payment, and can provide the ubiquitous mobile payments.

V. CONCLUSION

People bring the mobile phones with them all the time, many daily applications, such as payments, identification, data exchange, etc. can be provided through NFC-enabled devices. In the research, we analyze the several NFC-enabled technologies, which launch the products in the market. Among the several technologies, NFC-Micro SD technology is superior to other technologies, and is the next wave of mainstream trend obviously.

The competitive advantage of NFC-Micro SD technology is the patent of packaging antenna module. It can provide the more convenient and cheaper solution, and can apply in all types of mobile phones.

Mobile payments have the rapid growth in emerging markets. To increase the value of the mobile payments ecosystem service providers, included the banks (the card issuers), the Perso Company, the information service providers, merchants, etc., NFC-Micro SD solution offers a holistic mechanism and makes the players of the value chain as the collaborative partners with the least change for the original process. By the collaborative partnership, it can improve the loyalty of the partners and willingness to promote. The benefit of the partners is as follows:

a) For the banks: The banks don’t have to change the original process and existing security mechanism. They only exchange the plastic credit cards to NFC-Micro SD cards, and release the NFC mobile payment operation soon. By the security mechanism of NFC-Micro SD technology and the NFC mobile payment chain, it provides the safer security mechanism and avoids the confidential personal information to be distributed to any third parties.

b) For Perso Company: The Perso Company is the segment of the original value chain. In NFC mobile payment chain, it increases the volume of the credit cards making and creates its value in the NFC mobile payment value chain.

c) For information service provider: The information service provider can not only provide the existing information service to the banks, but also develop the systems and apps for the users according to the requirement of the banks. The management and maintenance of the information systems can improve the profit in the NFC mobile payment chain and the willingness of collaboration.

d) For NFC-Micro SD provider: The solution provider only offers the empty cards to Perso Company without changing the original issuing process. It also can develop the customization empty cards according to the requirement of the banks, included the volume of the Micro SD cards, the special specifications for the certain banks. In system development stage, the solution provider can be close to the

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information service provider and provide the friendly system together in order to improve the willingness of the consumers.

e) For merchants: The solution can accelerate the speed of the transaction without exchange the existing equipment. The merchant can choose to use the existing POS reader or their own NFC-Mico SD device to execute the transaction. The convenient solution also can increase the sales for the merchant.

f) For consumers: The consumers don’t have to carry so many credit cards and cash with them. What the consumers do is apply to the NFC-Micro SD cards, choose the mobile phones they like, insert the NFC-Micro SD cards into the mobile phones, and enjoy their mobile payment journey. Obviously, the convenient way can improve the using willingness of the consumers.

NFC-Micro SD technology provides two modes, passive mode and active mode. In the passive mode, the NFC-enabled devices can be as the credit cards, and transact with the POS machines. It can save more cost to enter in NFC mobile payment market for the store, and improve the acceptance of theirs. In the active mode, the NFC-enabled devices can be as the credit card and the mobile POS machine. It permits the two NFC-enabled devices to do the transaction and transfer the accounts to each other. It can active the consumer market by NFC-enabled mobile devices.

In summary, NFC mobile payment is imperative, and the mobile phone age is also changing the rules for mobile payments. NFC-Micro SD solution can increase the benefit of NFC mobile payments successfully. The solution is the better mobile payment solution nowadays, and can use in the physical stores and the virtual shopping. With the NFC mobile payment chain, we can expect NFC mobile payment will be full of our life and lead the ubiquitous life in the near future.

ACKNOWLEDGMENT

Our thanks to NSC 99-2410-H-009-037-MY3, Taiwan for supporting the study and AboMem Corp. for providing the data of NFC-Micro SD technology they developed to the research.

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