This presentation was delivered March 8, 2017 at RETAILTECH JAPAN by Koichi Tagawa, Chairman, NFC Forum, Sony. Technology is reshaping the face and function of the traditional brick-and-mortar store, forever changing shopping as we know it. NFC-enabled mobile payments and tags are the latest must-have accessories. Forward-thinking retailers are pushing the boundaries to further engage shoppers—often with nothing more than a simple touch, tap, or swipe. NFC, the technology link between the physical and digital world, is helping build a stronger, more meaningful—and therefore more profitable—relationships with customers. NFC-enabled industries, including transport, automotive and IoT, are opening new doors for retailers. All with a simple tap, consumers can make NFC-enabled transactions using a wearable, their car dashboard, or in an NFC-enabled train station. This presentation will highlight how the growth of NFC is leading to “retail anywhere” NFC-enabled applications. The presentation will spotlight NFC use cases in the Internet of Things, Transportation, Automotive markets and examine the future of NFC-based product innovation. For latest developments: www.nfc-forum.org

1. Koichi Tagawa, Chairman, NFC Forum, Sony
Enhancing CX with Digital Commerce - RETAILTECH JAPAN
March 8, 2017, Tokyo
NFC: Shaping the Future of the Connected Customer Experience

2. WHAT IS NFC?
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3. Advancing Near Field Communication Technology3
Contactless, Connected and Customer Initiated
Access
Connected
Car Connected
Home
Smart
Manu-
facturing
Smart
Mobility
Payment
Marketing
AN NFC-ENABLED WORLD
WIDE-RANGING USER EXPERIENCES - NFC EVERYWHERE

4. NFC AS A UNIQUE RF INTERFACE
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NFC Forum Specifications
• Provide tap-based transactions that are:
• Intended
• Intuitive
• Globally interoperable
• Enabling two-way data communication
• Delivering power simultaneously
What is NFC? Click here for video: https://youtu.be/8q9iISSRx7k

5. NFC AS DEFINED BY THE NFC FORUM
Modes and Compatibility
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NFC Operates in Three Modes NFC is Compatible with Global Communications Standards
Global Interoperability
Form Factor Free
Card
(ID-1)
NFC-A
ISO/IEC 1443/18092
NFC-B
ISO/IEC 1443
NFC-F
ISO/IEC 18092
NFC Tag
(Type 1-5)
Device
Mobile, Terminals
NFC-V
ISO/IEC 15693

6. NFC FORUM
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7. Advancing Near Field Communication Technology7
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

8. 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
● 150 member companies
Collaborations with industry consortia:

9. NFC FORUM: DRIVING NFC FORWARD ON ALL FRONTS
9
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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10. SPONSOR MEMBERS
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PRINCIPAL MEMBERS
10

11. ASSOCIATE MEMBERS
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12. IMPLEMENTER MEMBERS
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NON-PROFIT MEMBERS

13. LATEST MARKET DEVELOPMENTS
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14. GLOBAL NFC MARKET GROWTH
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Source 1: IHS
Source 2: Markets and Markets
Source 3: Strategy Analytics
Source 4: Juniper
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 exceed reach 21.84 Billion by 20202
Contactless POS payments to hit $500B in 20174
• Contactless POS terminals to increase by 2021
• Standard in Europe by January 2020
• Upgraded in Sweden, Estonia, Latvia in 2017
Source: IHS

15. JAPANESE E-MONEY GROWTH
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Source: Payment and Settlement Statistics by Bank of Japan (Central Bank)
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Transaction
(million)
Value
(100M yen)

16. Advancing Near Field Communication Technology16
Technology trends creating opportunity for NXP
MOBILE NFC PAYMENT BRANDS ARE EXPANDING GLOBALLY
AND IN JAPAN
• Cloud-based, Supports Open Development
• NFC
• HCE-based payment projects worldwide
• Growing contactless infrastructure investment
• In Japan, broader collaboration with FeliCa eco-system
Deployment of Mobile Payment Accelerating Worldwide
Apple Pay
• SE-based
• NFC
• Worldwide deployment
Android PaySamsung Pay
• Both-SE and TEE-based
• NFC + MST
• Growing deployment

17. NFC ECO-SYSTEM IN JAPAN
17
NFC-FNFC-A/B
Seamless usage of EMVCo payment and FeliCa services
EMVCo platform FeliCa platform
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18. NFC-ENABLED MOMENTUM
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● Apple Pay, Samsung Pay, Android Pay embedded in
wearables
● Fit Pay, PayPass and PayWave are NFC-enabled
● PayPal NFC-enabled payments now in Spain and
expected across Europe
● Fit Pay and Mastercard bringing contactless payments
to wearables and IoT manufacturers
● Visa enabling manufacturers and developers to use its
Token Service payment platform on any IoT device
More than 2.5 million devices are expected to be enabled
for payments in 2017, with the number rising to more than
9 million in 2018. Source NFC World
Source: Digital Trends
Source: Huffington PostSource: Mashable

19. NFC-ENABLED TRANSPORT
1
9.
JR East NFC-enabled Mobile Suica
● Japan’s transport company, JR East, expanded its NFC- and Android-
based mobile payment system, Suica, to include Apple Pay
● 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
● The NFC Forum’s harmonization efforts have greatly advanced public
transport interoperability as detailed in this white paper:
 NFC-enabled e-Ticketing in Public Transport: Clearing the Route to
Interoperability
Japan’s National Tourism Board aims to double the number of foreign
visitors to 40 million by the 2020 Summer Olympics. JR East uses NFC
technology to make public transport more open, versatile, and
interoperable for all its riders. Source NFC Forum
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20. NFC-ENABLED AUTOMOTIVE
2
0.
Mercedes-Benz and Samsung created NFC smartphone car key
Tap-and-access user convenience
● NFC-enabled Samsung smartphone with secure SIM card
● Mercedes-Benz companion application
● NFC chip
Embedded solution
● Tamper-proof embedded Secure Element
● NFC technology designed for sensitive uses, such as payment systems,
transport, ticketing, corporate access, and cloud computing authentication
● NFC chip will be installed into the door handles of compatible models1
Mercedes-Benz & Samsung NFC Car Key
Source 1: Android Headlines, “Mercedes-Benz And Samsung Unveil Smartphone Car Key, Sept. 3, 2016
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21. NFC: CONNECTING THE UNCONNECTED
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● User-initiated NFC-enabled
connections, commissions and control
of Internet of Things
● NFC embeds intelligence in
unpowered, unconnected objects
● Access to data from unpowered,
unconnected objects
● NFC technology is designed for
sensitive uses, such as IoT applications
in payment systems, transport,
ticketing, corporate access, and cloud
computing authentication
Source: Forrester

22. Advancing Near Field Communication Technology22
NFC: USER-INITIATED TRANSACTIONS
USER INTIATED CONNECTIONS:
Common Infrastructures
Card Emulation – Payment for:
● Multimedia streaming
● System upgrades
● Tolls, tickets, vending
● Goods, services, gas
Physical World To Online World
Enhanced User Experience
● BT/WiFi pair: NFC Connection Handover
● Tags: information, access
● Personalize settings
● Wireless power charging
● Service notifications
Through Physical Proximity
Smart Authorization (Peer to Peer)
● Access to transport, buildings
● Rental or sharing
● Fleet management
● VIP retail experiences
Internet
of Things

23. NFC MARKET DEVELOPMENTS:
EXPANDING THE RETAIL OPPORTUNITY
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24. NFC RETAIL ANYWHERE
CONTACTLESS, CONNECTED, USER-INITIATED
24
NFC Tags
Device-to-Device
Payment
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25. NFC RETAIL ANYWHERE – IN STORES
CONTACTLESS, CONNECTED, USER-INITIATED
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Supermarket NFC-enabled
shopping service enables
customers to add products to a
digital shopping basket and
receive personalized discount
vouchers with a tap of their NFC
phone.
Source NFC World
NFC provides smart access for
store workers or enables retailers
to provide VIP access to special
retail experiences.
Source GIT Security
Diverse array of industries are
looking at NFC and NFC Tags as a
way to fight the booming fake-
goods market, which accounts for
2.5 percent, or $461 billion, of
world trade.
Source OZY

26. NFC RETAIL ANYWHERE – IN PRODUCTS
CONTACTLESS, CONNECTED, USER-INITIATED
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Kuvée NFC-enabled, connected
wine dispensing system allows
users to view tasting notes, rate
wines and make purchases which
are shipped right to your door.
Source: NFC Forum Innovation Awards
Semi-Finalist
Tostitos used NFC to allow fans to
tap the bag with their phone to
call a ride, offering partygoers $10
off their Uber ride during and after
the Feb. 5th Super bowl game.
Source NFC World
Avery Dennison's DirectLink NFC-
enabled labels allow access to
more product information with
just a swipe of a smartphone
Source Smart Packaging

27. NFC FORUM MEMBER MEETING – LAS VEGAS
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28. For more information on how to get
involved: http://nfc-forum.org/
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Become a Leader in the Rapidly Growing NFC Industry
Join the NFC Forum!

29. THANK YOU!
Questions?
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