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COMPANY CONFIDENTIAL

Beyond cards, phones and terminals: New payment form factors

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

May 2, 20232

The evolution of payments

Source: the RWC Group

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Pay anywhere, anytime using mobile magic

May 2, 2023

Trends happening today in the Payment Industry

3.

› 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,…

May 2, 20234

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* PC mPOS, PC/Tablet, Embedded

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

May 2, 2023 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

2014 2015 2016 2017 2018 20195

7

9

11

13

15

17

Growth in sales for mPOS devices (in Million)

May 2, 20236.

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: $ 8,99Pay with ***3342

May 2, 20237.

› 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

May 2, 20238.

› 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

May 2, 20239.

› 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?

May 2, 2023

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

10.

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