This presentation was delivered at the HCE+Tokenization Summit Amsterdam by Alexander Rensink, Vice Chairman of NFC Forum. Presentation reviews: - NFC and the Connected World - Latest Market Developments - HCE in Action

1. Alexander Rensink, Vice Chairman, NFC Forum
HCE+Tokenization Summit Amsterdam
November 25, 2016, Amsterdam
NFC And HCE 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. THE NFC FORUM REPRESENTS
Advancing Near Field Communication Technology3
All of the world’s major:
● Chip vendors
● Payment service providers
● Smart phone manufacturers
● Mobile operating system providers
● 150 member companies
Collaborations with industry consortia:

4. NFC AND THE CONNECTED WORLD
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5. Advancing Near Field Communication Technology5
Technology trends creating opportunity for NXP
80% of the world’s economic value will come
from connectivity improvements to existing cars, devices, and Internet of Things
Source: Euromonitor; Gartner; ARM Holdings; UBS; Center for Strategic and International Studies;
McAfee, NXP analysis, International Telecommunications Union
Everything
connected
Everything
smart
Everything
secure
1B+ additional
consumers online, 50B+
connected devices
80B+ more devices with
intelligence by 2017
Economic impact of
cyber-attacks nearing
half-trillion dollars
FUTURE: NFC-CONNECTIVITY EVERYWHERE

6. NFC-ENABLED WORLD
WIDE-RANGING USER EXPERIENCES EVERYWHERE
Access
Connected
Car Connected
Home
Smart
Ticketing
Marketing
Smart
Transport
HCE harnesses NFC to
elevate connectivity across
the connected world
Retail
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7. LATEST MARKET DEVELOPMENTS
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8. GLOBAL NFC MARKET GROWTH
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Source 1: IHS
Source 2: Global Market Insights
Source 3: Strategy Analytics
Source 4: Juniper
Source 5: ABI Research
Installed base of NFC enabled handsets of 2.6 billion units
by end 2016 and 330+ different models in the
marketplace5
2.2 billion NFC-enabled handset shipments by 20201
• NFC adopted across all handset OEMs, covering all OSs
• 72% by 20203, up from 52% in 20163 and 18%1 in 2013
• Apple Pay, Samsung Pay, Android Pay, etc.
• Global NFC market to reach US$47B2 by 2024
Mobile payments with handsets reached 148 million
consumers this year⁴
1
Source: IHS

9. NFC SIM AND SECURE EMBEDDED ELEMENT GROWTH
CONTINUES
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Eurosmart, May, 2016 http://www.eurosmart.com/facts-figures.html
• 570 million units forecasted for 2016 SIM and
eSE or 15% growth from previous year
• 9,765 million units forecasted to ship in 2016
• Telecom represents 50% of shipments
• 63% shipment growth for Device Manufacturers
Includes NFC UICC Secure Element, Embedded Secure Element and Embedded UICC

10. HCE GROWTH STARTS AND RAMPING FAST
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Banks embracing NFC and HCE as a strategy3:
• 55 banks introduced HCE-based services as of Jan. 2016, up
from 7 in 2014
• Asia and Europe leading the way with 40+ HCE introductions
• Beyond smartphones, HCE could possibly be supported on
other devices such as wearables

11. MOBILE PAYMENT OPTIONS AND CHARACTERISTICS
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12. MOBILE PAYMENT SECURITY MODELS
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13. HCE IN ACTION
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14. HCE GROWTH ACROSS NFC-ENABLED EMV TRANSACTIONS
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Today:
● HCE supported by major payment schemes:
 Visa, MasterCard, AMEX, Discover, UnionPay, JCB, others
● Banks have rolled out HCE-based payment services
 Australia, UK, Scandinavia, Russia, Taiwan, Canada and more
 Royal Bank of Canada HCE wallet integrates over 150 loyalty programs
● 85% of market share of global smartphone shipment can
potentially support HCE1
 Android, Windows Phone, and BlackBerry OS
● Visa Pay and Mastercard Masterpass continue to grow HCE
offerings
 Masterpass is accepted at 5 million merchant locations in 77 countries
Source: NFCWorld+
Source 1: IDC

15. THE NEXT OPPORTUNITY:
NFC-BASED PUBLIC TRANSPORT (ESE + SIM + HCE)
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● NFC and HCE mobile train ticket purchase trial this fall in
West Yorkshire, UK
● 13 mobile-transit payment services launched or scheduled to
launch this year in US, including Atlanta, Los Angeles, and
Washington
● UK Cards Association announces framework for nationwide
NFC public transport payment
● Montreal pilots NFC transport payments with 100 employees
● NFC transport payments to pilot three month trial in
Adelaide this fall
● Dublin bus and railroad commuters to use NFC to pay for
transport
● Activation rates for NXP/Xiaomi NFC mobile transit solution
in China grew 15% in Shanghai and over 20% in Shenzhen
since services launched in June 2016
HCE App enables ticket purchases on their mobile phone
Source: Euro Transport Magazine
300 million will use contactless ticketing on mobile
and wearables by 2021. Source: Juniper Research

16. WE WANT YOU:
BECOME A LEADER IN THE RAPIDLY GROWING NFC INDUSTRY
JOIN THE NFC FORUM!
For more information on how to get
involved: http://nfc-forum.org/
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17. THANK YOU!
Questions?
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