Presentation by Paula Hunter, Executive Director of the NFC Forum, at the 2014 NFC Solutions Summit.

1. NFC & The Growth of
Connected Consumer
Electronics Devices
Paula Hunter
NFC Solutions Summit
June 3-4| Austin, TX

2. Agenda
 Internet of Things
 Global Market Situation
 Convergence - IOT and NFC
 NFC Forum Update
2

3. 3
What is the Internet of Things?

4. What is the Internet of Things?
A world in which every
device that produces data
can connect to the Internet
 Remote sensors
 Home appliances
 Consumer electronics
 Heating/cooling systems
 Office equipment
 Automobile engines
… and many, many more
4

5. What is the Internet of Things?
 The Internet of Things removes barriers:
– Machine-to-machine
– Machine-to-people
– People-to-machine
 The Internet of Things promises:
– Greater access to data
– Greater management of data
– Greater control of devices
 Gartner: 26+ billion connected devices by
2020
5

6. Benefits of
the Internet of Things
 Increased productivity
 Fewer steps
 Less data re-entry
 Greater, easier control
 Better coordination
 Data analytics
 Cost savings
6

7. Business Examples of
the Internet of Things
According to Information Week:
 Union Pacific cut train derailments by 75%
using remote sensors
 Dubai Aluminum used sensor data to improve
efficiency and increase output by 3.4%
 FedEx expects to save $9 million/year with
truck sensors for more efficient dock
assignments
7

8. Consumer Examples of
the Internet of Things
 Wearable baby monitors
 Cars that send alerts for
service needs
 Smart thermostats that
automatically adjust the
temperature
 Ovens that preheat in
time for your arrival home
… and many more
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9. What Does the Internet of Things
Require?
 An inexpensive
means of providing
intelligence
 Easy network
access
 A way to link
physical objects to
the online world
 A means of easy
user control
 NFC-enabled chips
 NFC Connection
Handover
 NFC tags
 Intuitive tap
interface
NFC Provides:
9

10. 10
NFC Technology
Global Market Situation

11. Recent Developments
 First NFC-enabled household
appliances launched
 Wearables market takes off
 First nationwide NFC payments
rollout in US
 New HCE feature in Android 4.4
 Top payment associations launch
HCE solutions
 Major North American coffee shop
launches NFC pay
 New NFC/Bluetooth LE solutions
– Smart thermostats, hybrid
beacons
11

12. NFC Phones Available Now
(Representative)
 Flagship models with NFC
 Samsung Galaxy S4
& S3
 LG G2, select
Optimus series
 HTC One series
 Motorola Moto X
 Blackberry Z10 &
Q10
 Nokia select Lumia
series
 Sony select Xperia
series
 Google Nexus
4/7/10, Galaxy
Nexus
 Android, BlackBerry,
Windows Phone 8
all support NFC at
operating system
level
 100% of Top 25 Amazon US
contract phones
12

13. DLI
9000
NFC Tablets
(Representative)
13
NFC-enabled tablets on the market or coming soon
Google Nexus
7
Kuoziro
FT701W
Asus Vivo
Tab/Tab RT
HP Elitebook
Revolve
Google Nexus
10
Asus Padfone
Infinity Asus Vivo Tab
Smart
Asus Padfone 2
BWC ToughSlate Fujitsu
Arrows Tab
HP Elitepad
900
Asmaitha Sruta
7” Tablet
7″Cetrix CT973G Cetrix CD661

14. Samsung NFC-enabled
laser printer
More NFC Devices
Additional types of NFC devices available now or on the way
Moneto: NFC
microSD for the
iPhone & Android
Revosys V5 taxi
terminal/tablet
ViVOtech NFC
payment terminals
Sony RC-S380
reader/writer
Glidepoint NFC
trackpad
Smart Meters for
utility companies
Nintendo Wii U
controllers
Barclay Card
Payment wristbands
RhythmTrak
Heart Monitor
I-O Data
WiFi Router
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15. HP Envy x2 Lenovo ThinkPad Helix Sony Vaio Fit
NFC Laptops
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16. More N-Marks in the World
16
2,708 downloads since 2009
198 217
517
722
843
2009 2010 2011 2012 2013
N-Mark Licenses per Year

17. Analyst Forecasts
 ABI Research
– 125M NFC handsets shipped in 2012; 285M shipped in 2013; 500+M in 2014
– NFC-enabled smartphone shipments are anticipated to increase by 481% from
2012 to 2015
 Berg Insight
– 1 in 3 mobile phones will come with NFC by 2017
– From 2012 to 2017, installed base of NFC handsets will increase at a CAGR of 65%
to reach 2.1bn units
– By 2017, the penetration rate for NFC in handsets will reach approximately 32%
 Gartner
– 50% of smartphones will have NFC capability by 2015
 IHS Technology
– Two in three phones will come with NFC by 2018
– Annual shipments increasing from 275M units in 2013 to 1.2B units in 2018
 Juniper Research
– 1.5B+ mobile wallets in use around the world by 2018
– By 2017, 1 in 4 US consumers will use NFC-enabled devices to pay for goods
in-store
17

18. 18
Convergence of NFC and IOT

19. Recent NFC Developments Supporting
the Internet of Things
Bluetooth 4.0 • Extends power and reach of
NFC
• Enables seamless customer
experience
Wi-Fi Alliance • Extends power and reach of
NFC
• Enables seamless customer
experience
Host Card Emulation (HCE)
NFC model
• Supports easy development
and deployment of NFC
solutions
19

20. Updated Bluetooth Secure
Simple Pairing with NFC
 Application Document
guides developers in
building solutions that
seamlessly combine
Bluetooth and NFC
 Updated to include
Bluetooth® Smart
devices and Bluetooth
LE
 Product of formal liaison
with Bluetooth SIG
signed last November
20

21. Wi-Fi Alliance Pushes the NFC Button
21
 Wi-Fi CERTIFIED Wi-Fi Protected
Setup™ now includes NFC “tap-
to-connect” for simple setup of
security-protected Wi-Fi devices
and networks
 Extends the reach of Wi-Fi
Protected Setup to smart home
devices (refrigerators,
thermostats, security systems)
with a single tap
 Key enabler for the Internet of
Things

22. HCE on Android 4.4
22
New mode introduction:
Host Card Emulation and RW mode covered,
additional to P2P mode (Android Beam)
http://developer.android.com/guide/topics/connectivity/nfc/hce.html
Secure
Element

23. NFC in the Internet of Things
eProvenance
 Temperature/humidity sensors in fine wine cases
 Provides data en route with a tap of an NFC-enabled
device
 Tracks cold chain for quality
 Ensures provenance
23

24. NFC in the Internet of Things
Touch an NFC-enabled phone to the TV remote and its screen
is instantly mirrored on the TV
24

25. NFC in the Internet of Things
 Smart Lighting
 Link energy-harvesting wireless light switches to a
home network with a touch an NFC-enabled phone
 Simplifies setup and control
25

26. NFC in the Internet of Things
NFC-enabled appliances allow control from anywhere and
receive helpful Web content.
26

27. NFC in the Internet of Things
NFC-enabled
vending machines
 Pay with a tap
 Earn loyalty
points
27

28. 28
The NFC Forum

29. Mission and Goals
 The mission of the NFC Forum is
to advance the use of NFC technology by:
29
 Developing standards-based
specifications that ensure
interoperability among devices and
services
 Encouraging the development of
products using NFC Forum
specifications
 Educating the market globally about
NFC technology
 Ensuring that products claiming NFC
capabilities comply with NFC Forum
specifications
 Promoting the NFC Forum N-Mark

30. Members – February 2014
30
SPONSOR MEMBERS
PRINCIPAL MEMBERS

31. Members – February 2014
31
ASSOCIATE MEMBERS

32. Members – February 2014
32
NONPROFIT MEMBERS
IMPLEMENTER MEMBERS

33. New Set of Integrated
Specifications
 NFC Activity 1.1
 Connection Handover
1.3
 NCI 1.1
 Digital Protocol 1.1
 LLCP 1.2
 Type 1/2/3/4 Tags
… designed for use
together to streamline and
accelerate NFC product
development Mediated Handover is a new feature of
Connection Handover 1.3
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34. Special Interest Group Sectors
Potential to establish additional working groups as partners
identify high market importance and opportunity
Transport
Air Transport &
Ticketing
Public Transport
& Ticketing
Other Transport
Schemes
…future…
Health
Pharmacy
Insurance
Clinic
Hospital
Management
Payment
Financial
Institutions
Terminal
Manufacturers
Merchants
…future...
Retail
Product Tags
POS, Vending
Coupons
Points, Rewards
Consumer
Electronic
s
PC, Tablet,
Embedded
Handsets,
Remote
Controls
Computer
Peripherals
Appliances
Personal Auto
34

35. Liaison Partners
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36. NFC Is Here!
Still Some Challenges to Overcome
1 NFC adoption varies by region.
2
Payment is complex due to multiple players
and business models. Solutions and
simpler models like HCE are underway.
3 Customer awareness limited outside Asia,
fewer opportunities to experience NFC.
4 The NFC Forum is the place to foster
adoption and help overcome challenges.
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37. Thank You
… and Join Us!
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www.nfc-forum.org