Presentation by Terunao Tsuchiya, NFC Forum Board representative for Dai Nippon Printing, from March 11, 2016 at Asia Pacific Smart Card Association Presentation includes the NFC Forum mission and strategic focus for 2016, a review of the latest market developments, use-cases of NFC Payment, Transportation and IoT In Action, and a overview of the Role of the NFC Forum.

1. Terunao Tsuchiya, NFC Forum Board of Directors, Dai Nippon Printing
Asia Pacific Smart Card Association
March 11, 2016, Tokyo
NFC Mobile Payments 2016
What’s Next?

2. Advancing Near Field Communication Technology2
The NFC Forum brings the
convenience of NFC
technology to life. We
empower organizations to
deliver secure, tap-based
interactions with an
intuitive, reliable experience
to users around the globe.
NFC FORUM MISSION

3. STRATEGIC FOCUS FOR 2016
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Transportation
Internet of Things
Payment
Pervasive use of
contactless
payment via mobile
devices
NFC technology an
accepted element and
the tool of choice for
non connected
devices
Growing access and
increased usage rates
of NFC technology in
PTOs worldwide

4. LATEST MARKET DEVELOPMENTS
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5. NFC MARKET GROWTH (CAGR)
5
43.7%
50.6%
2014 - 2019
Source: Technavio
2013 - 2019
Source: Transparency Market
Research
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6. GLOBAL MOBILE PAYMENT GROWTH
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0
2000
4000
6000
8000
10000
12000
2015 2016 2017 2018 2019
Revenue (US $100M)
Revenue (US
$100M)
Source: TrendForce, Feb. 2016

7. NFC PAYMENT, TRANSPORTATION AND
IOT IN ACTION
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8. MOBILE NFC PAYMENT IS EXPANDING GLOBALLY
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• Supports open development
• Carriers on board
• HCE-based payment projects
all over the world
• Accelerating contactless infrastructure investment
Full scale deployment of Mobile Payment in US
Apple Pay
• Thousands of banks
• Millions of locations
• US, China, Canada, UK, Australia
Android PaySamsung Pay
• Launched in S. Korea, US
• 5M Users in S. Korea, US
• NFC + MST

9. NFC IN PAYMENT GROWTH
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● Two of the four largest Australian
banks rolled out mobile pay for all
customers
● Barclaycard completed deployment of
HCE to mobile app and sees 164%
increase in contactless transactions
● Largest multi-bank payment solution
with 200 Scandinavian banks
announced
Within the past month:
Source: NFCWorld+
Mobile payment methods will see a five-
year compound annual growth rate of
more than 43% to $4 trillion in 2020.
Source: IDC

10. NFC IN PUBLIC TRANSPORT GROWTH
10
● Netherlands launched Android-based
NFC public transport payment trial
● Moscow launched NFC public
transport ticketing
● UK Cards Association announces
framework for nationwide NFC public
transport payment
Within the past month:
Source: NFCWorld+
An estimated 1.5 billion boarding passes will
be issued via smartphone by 2019
Source: Juniper Research

11. THE INTERNET OF THINGS ...
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... AND THE CONNECTED CONSUMER

12. NFC IN INTERNET OF THINGS GROWTH
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● Energy harvesting for the connected
home
● Luxury goods and collectable
authentication
● Tracking and monitoring sensor data
IoT solutions in use right now:
According to IDC, IoT spending will top $1.4
billion by 2019
Source: IDC

13. PARADIGM SHIFT: WHAT NFC BRINGS
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14. FROM COMPANY DRIVEN TO INDUSTRY DRIVEN
14
1 model, Global Market
Market Structure Shift
Regional base to Global base
NFC Popularity in B2C product
Industry Structure Shift
Vertical to Horizontal Integration
Standard Feature on Mobile OS
App Development Process Shift
MNO centric to Mobile OS centric
Product Enhancement
Card/RW to Mobile/Embedded device
Next Stage
Security: Chip base to total optimization
New feature: Wireless Charging
Economies of Scale
Industry Driven
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15. 2 BILLION CLASS PLATFORM
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● Impact on B2C market
 Billions of deployed NFC devices now available to support your service offering
 New use cases can be introduced on Day 1 over the platform
● Impact on B2B market
 Enables easy development of contactless applications without dedicated equipment
 Commoditization of acceptance terminal
 Market figure of FY2014: POS terminal 30M unit vs. NFC device 500M unit
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16. THE ABILITY TO CONNECT THE UNCONNECTED
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● It‘s The Internet of Things, not The Internet of
Electronic Things
● Need a way to embed intelligence in
unpowered, unconnected objects and things
● Need a way to gather data from unpowered,
unconnected objects and things

17. Small Form Factor
• Advantage of 13.56MHz, small antenna
• Possible adoption with limited space
Single Antenna
• Enable charging over NFC without any other
antenna implementation
Foreign Object Detection
• Fracture prevention of NFC Tag
• Auto suspension in case of object detection
Transmission Power Configuration
• Power optimization depends on target device
INTEGRATION OF COMMUNICATION AND CHARGING
17
Field Power
Control
Receiver
Transmitter
Transmitter
6W1W
＋ α ？
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18. ROLE OF THE NFC FORUM
NFC Forum
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19. THE NFC FORUM REPRESENTS
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All of the world’s major:
● chip vendors
● payment service providers
● smart phone manufacturers
● mobile operating system providers

20. SPONSOR MEMBERS
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PRINCIPAL MEMBERS
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21. ASSOCIATE MEMBERS
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22. IMPLEMENTER MEMBERS
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NON-PROFIT MEMBERS

23. NFC FORUM SPECIAL INTEREST GROUPS
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Special Interest
Groups (SIG)
Technical
Committee
Japan
Task Force
Six Working Groups lead
technical discussions, and
create and maintain all
aspects of the NFC Forum
technical specifications.
Activities are open to all
members except Implementer
members, with voting rights
for Sponsor and Principal
Members.
SIG Working Group and Task
Force activities build value
across key market sectors.
Efforts are open to all
members.
Three Working Groups
manage the framework for the
NFC Forum Certification
Program and Plugfest Events.
Activities are open to all
members except Implementer
members, with voting rights
for Sponsor and Principal
Members.
This group was established to
promote NFC to this regional
market and overcome the
challenges of migration from
its legacy infrastructure. Key
players in the region have
been sharing NFC use cases
and best practices, as well as
identifying opportunities to
expand activities with the SIG
Working Groups.
Compliance
Committee
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24. LIAISON PARTNERS
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25. BECOME A LEADER RAPIDLY GROWING NFC INDUSTRY
JOIN THE NFC FORUM!
For more information on how to get
involved: http://nfc-forum.org/
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26. THANK YOU!
Questions?
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