Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
Property of the Smart Card Alliance © 2011
The Future of NFC Mobile Payments
Randy VanderhoofExecutive Director
Transit Payments Markets Migration to NFC Mobile Payments
Sponsored by the ITS Professional Capacity Building Program, ITS Joint Program Office, Research and Innovative Technology Administration, U.S. Department of Transportation
Property of the Smart Card Alliance © 2011
History of payments innovation
20 yrs
10 yrs
5 yrs
1 yr
ATMs
Debit Cards
Contact-less cards
NFC Mobile
Payments
Property of the Smart Card Alliance © 2011
Contactless Payments
vending
taxi
Form factors
applications
drive thru
Property of the Smart Card Alliance © 2011
Mobile and NFC
Near Field Communication (NFC) is a short-range wireless connectivity technology (also known as ISO/IEC 18092
The primary uses of NFC are to:
– Connect electronic devices, such as wireless components in a home office system or a headset with a mobile phone
– Access digital content, using a wireless device such as a cell phone to read a “smart” poster embedded with an RF tag
– Make contactless transactions, including those for payment, access and ticketing
4
Property of the Smart Card Alliance © 2011
NFC Mobile to Become a Payment and Interactive Marketing Platform
From Back Pocket to Front Pocket
From Paper to Virtual Tickets
From Paper to Virtual Coupons
From Mass to Personalized
From Pre Sale to in Store Experience
NFC – Near Field Communication Based on ISO Standard & Compatible with Contactless Payment StandardCourtesy of
ViVOtech
Property of the Smart Card Alliance © 2011
Closed Mobile Wallet ExampleNFC Smart Poster Pilot
NFC Trial by Sprint - BART Transit – Jack in the Box in SFO – Jan 29, 2008
Get directions to the nearest Jack in the Box on your phone screen
Courtesy of ViVOtech
Property of the Smart Card Alliance © 2011
Open Mobile Wallet Models
Google Wallet Isis
Orange/Barclays
Property of the Smart Card Alliance © 2011
Transit Connection To The NFC Mobile Ecosystem
The Trusted Service Manager (TSM) provides a contact point between transportation service providers and NFC mobile phones.
8
TRANSIT:
Property of the Smart Card Alliance © 2011
NFC and Application Security
Several secure architectures are available to implement NFC applications:
Removable elements:UICC (SIM) based secure elementMicroSD card-based secure element
Non-removable elementsEmbedded hardware secure elementNFC radio and secure element built into device
9
Property of the Smart Card Alliance © 2011
Role of Transportation in the Roadmap of Payments Innovation
Migration from closed loop to open paymentTransit riders fit next generation payment
target profileLow value, high speed transactions
Repeat users
Bridge to other merchant services
Demand interactive data exchange
Credit, debit, prepaid usage experienceService-driven, not profit-driven
Property of the Smart Card Alliance © 2011
Challenges for Transit Payments
Banking and transit don’t speak the same language
Transit demands for speed and flexibility with low risk
Open payments not uniformly embraced by established vendors and integrators
Within transit – rail, buses, subway, light rail have different fare collection policies and structures
Wireless service not always available
Property of the Smart Card Alliance © 2011
Questions ?
191 Clarksville Road, Princeton Junction, New Jersey 08550 USA Main: (1) 800-556-6828 Direct: (1) 609-587-4208 Mobile: (1) 609-731-8251Email: [email protected]
Randy J. VanderhoofExecutive Director
. . . accelerating the widespread adoption of smart cards and secure IC chips in North America and Latin America
www.smartcardalliance.org