Ray de Silva, MArket Development Director at GSMA outlines some of the progress being made in developing the SIM-secured mobile NFC ecosystem at a recent NFC focussed event in Milan

1. Mobile NFC Services Programme 2012-2013
Mobile Money Summit – Accelerator Classes
24 October 2012, Milano
Ray de Silva
Market Development Director
Restricted - Confidential Information
© GSM Association 2012
All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy

2. The GSMA
The GSMA represents the interests of mobile operators worldwide.
Spanning more than 220 countries, the GSMA unites nearly 800 of the
world’s mobile operators, as well as more than 200 companies in the
broader mobile ecosystem.

3. GSMA Key Programmes
Spectrum Mobile NFC Connected Living
Rich Communications SIM Based Identification Global Roaming
© GSM Association 2012

4. Mobile NFC Programme
Existing Markets:
• Canada
• Asia (CJK)
• Brazil
• Poland
• Western
Europe
• Nordics
• Australia
New Markets:
• Latam
• Eastern
Europe
• Asia
© GSM Association 2012

5. NFC Momentum is growing
2004-5 2006-7 2008-10 2011 2012/13
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6. Mobile NFC brings new services to the consumer
Consumer
Payments Ticketing Transportation Loyalty/Coupons Access Control
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7. The Secure Element
 A 'secure element' is required to safely store a user’s identity information,
for services demanding high levels of security
 Sticker  MicroSD  Embedded  SIM-based
 Easy to produce & attach  Easy to attach  Supports multiple  SIM is certified &
services standardised
 No interaction with phone  Existing mobile
devices  OTA updates  Global standards (SWP)
 Supports 1 service
provider  Supports 1 service  No service portability  Supports multiple
 Not standardised provider  Customer care unclear services
 Customer care unclear  OTA updates
 Not standardised/certified
 Not  Portable SIMs
standardised/certified  Operator customer care
© GSM Association 2012

8. Why SIM?
 Allows consumers freedom of portability between both
network operators and handset providers, creating an
open competitive environment for all globally.
NFC Technology
 Provides global interoperability through certified open
standards that can be used by anyone, anywhere in +
the word, regardless of operator, or NFC-enabled
handset.
 Very secure. It can meet certified bank grade security SIM Secure Element
standards and allows for ‘over the air’ management in =
the event of loss.
Mobile NFC
© GSM Association 2012

9. Why Mobile Operators?
 Substantial distribution channels to provide and
promote NFC enabled services, and have sufficient
economies of scale to provide mobile contactless to
all
 Customer care infrastructure providing consumers
with a trusted transaction partner issues relating to
their mobile services
 Technical infrastructure for the provisioning and
management of SIM cards and ensuring adequate
security
 Substantial experience in standards-based and
interoperable services, enabling strong ecosystem
development based on the mobile platform
© GSM Association 2012

10. ISIS SIM-based NFC teaser video
© GSM Association 2012

11. The Scale of NFC
Global mobile payment transaction volumes
will increase over the next five years to more than 50% of all smartphones
US$1.3 trillion will be NFC enabled by 2015
(Gartner - March 2012)
(Juniper August 2012)
Samsung have sold over Over 600k contactless enabled
PoS in China
20 Million (NFC Times Julne2012).
Galaxy SIII Handsets 100k contactless
in 100 days (Samsung - Aug 2012) in the UK
(UK Cards Association - September 2012
In 2013 up to
Over 50% of spending put through
Visa in Europe in 2020 300 million
will be via a mobile device NFC smartphones, tablets
(Visa – Jan 2012)
and eReaders will be sold
(Deloitte - Jan 2012)
© GSM Association 2012

12. Global SIM Based Mobile NFC Initiatives
Canada USA
France Korea
Singapore UK
Commercial services also launched in: Poland, Czech Republic, Japan, New Zealand, Turkey
© GSM Association 2012

13. Contactless payment Poland/Germany
Summary NFC in Poland
• T-Mobile & Orange
launching mobile payment
solutions in the next 2 months
• New technology gives new
players the option to enter
established markets/processes
• Payment will be a carrier for
other contactless services
• Poland is the leading country
for NFC/contactless payment
• EURO 2012 contactless
payment was in focus of
marketing campaigns by
payment/bank industry
• More and more merchants
© GSM Association 2012 accept contactless payments

14. Singtel NFC mpayment service
Major Singapore Operators — SingTel, Starhub, and M1
released their NFC mobile wallets. These apps have amassed thousands of downloads
A fast way to pay - no longer need to worry about not having cash on hand
Convenient and secure - Fast, easy and contactless, grab your purchases within
minutes!
Instant and easy top-up - skip the queues and top up via your phone.
Widely accepted - over 20,000 merchants with the
© GSM Association 2012

15. To Summarise – The Solution
 Collaboration is essential
 Reduces fragmentation
 Improves interoperability
 Government backing (e.g. France, Singapore) was extremely
important to help ecosystem building and triggering collaboration
 Interoperability
 Open standards are essential
 Increases competition by lowering barriers to entry
 Increases diversification and so allows new players to offer
services
 Increases consumer choice
 Security
 Consumer Security and Privacy comes first
 There is no compromise on the bank grade security offered via SIM-
based NFC
© GSM Association 2012

16. Contact information
www.gsma.com
Ray de Silva
Market Development
Director
rdesilva@gsm.org
© GSM Association 2012