2. Overview and Purpose
Provide an initial situation analysis of NFC
Request for seed funding to investigate the
cost of integrating Near-Field
Communications as a part of Onyx’s
commercial structure
3. Overview
Near-Field Communications allows users
to transact, exchange, and connect via
their smartphone.
Used in office security ID cards and car
keys.
4. Similar Devices
Comparing NFC to other close range communication technologies (Ortiz, 2008)
6. Current Uses for Similar
Devices
First Data GO-Tag
RFID Tag used on a
keychain
Possible to replace cash
and credit cards
Used Visa’s payWave
application
Not enough buzz
7. Current Uses for Similar
Devices
E-Z Pass
Close-Field Device
Allows automobiles to pay
tolls
Works with most interstate
toll roads in Northeastern
US
Some expanded uses allow
payment at airport parking
lots
8. Current Uses for Similar
Devices
Zip Car (US) and Mobility (CH)
Car Sharing Services
Automobile sharing
services using RFID/NFC
card
NFC card allows members
to access shared rental cars
distributed throughout
metropolitan areas
Similar infrastructure in
place for bicycle sharing in
Barcelona, Germany, and
France
12. Market Potential
Payments would hit $150 B by 2015 per Frost
and Sullivan
Gartner projects 340 M mobile users will
make $245 BUSD in transactions by 2014
Jupiter Research projected up to 700 million
NFC enable mobile phones will be sold by
2013, representing 25% of the market
14. Technical Aspects
NFC is based on combination of
“Contactless Smart Cards” and RFID
technologies
Current emerging standards are ISO 14443
and 18092
Attempt to leverage current
infrastructures and standards
16. Challenges
Highly competitive situation
Most key stakeholders are
stalling adoption to position
themselves to lead the market
Competing technologies are on
an upswing
Various optical bar codes
Has limitations as some readers
rely on optics
17. Quick Turning Point in March
2011
AT&T and Verizon have opened their venture
to all payment networks, but Sprint is
engaging its own network
Fight for Verifone/Hypercom US assets
between Ingenico and ViVOtech
Amazon’s announced Android Appstore
18. Initial Implications
High potential for this in a commercial
context
High number of stakeholders in this space
Movement is quick
Underlying theme is convergence based on
current and emerging technological
standards
Hope to utilize current e-commerce and pay
transaction infrastructure
19. Initial Implications
Will require cross functional involvement
from:
Marketing and Promotions
E-commerce
Sourcing
Information Technology
Telecom
Information Security
Legal
20. High Level Plan
Mobilize resources
Send NDA and RFI to select, key hardware
and software players mentioned earlier
Evaluate impact to current organizational
practices
Evaluate interface points and impact to
Onyx’s current e-commerce infrastructure
Build strategy and business cases to include
in current and future budget cycles.
22. References
Near Field Communications Business Models. (2011). Retrieved March 21, 2011, from Near Field Communications World:
http://www.nearfieldcommunicationsworld.com/
Nexus - Google. (2011). Retrieved March 28, 2011, from Google: http://www.google.com/nexus/
The Guardian. (2011). From moconews.net: http://moconews.net/
Balaban, D. (2009, October 26). Large C-Store Chain Goes to Go-Tag Sticker. Retrieved March 11, 2011, from NFC Times:
http://www.nfctimes.com/news/large-us-convenience-store-chain-sell-contactless-stickers
Bensinger, B. (2011, April 5). AT&T, Verizon Wireless to Open Venture to All Payment Networks. Retrieved April 5, 2011, from Bloomberg:
http://www.bloomberg.com/news/2011-04-05/at-t-verizon-wireless-to-open-venture-to-all-payment-networks.html
Benson, C. C. (2010, February 23). NFC vs. Not-NFC, or "Why Put Card Data on the Phone?" A look at Mocapay. Retrieved March 11, 2011, from
PaymentsViews: http://paymentsviews.com/2010/02/23/nfc-vs-not-nfc-or-%E2%80%9Cwhy-put-card-data-on-the-phone%E2%80%9D-a-
look-at-mocapay/
Brown, C. (2011, March 20). NFC will catch on ‘like wildfire’ says Sundance festival game creator. Retrieved April 5, 2011, from Near Field
Communications World: http://www.nearfieldcommunicationsworld.com/2011/03/20/36516/nfc-will-catch-on-like-wildfire-says-sundance-
festival-game-creator/
Elavon, Inc. (2011). About us. Retrieved April 8, 2011, from http://www.elavon.com/acquiring/about/index.aspx:
http://www.elavon.com/acquiring/about/index.aspx
Eurosmart. (2010, December). Figures. Retrieved March 21, 2011, from Eurosmart:
http://www.eurosmart.com/index.php/publications/market-overview.html
Evans, J. (2011, March 18). iPhone 5: Apple, NFC, iTunes payments and you. Retrieved March 29, 2011, from Computer World:
http://blogs.computerworld.com/17996/iphone_5_apple_nfc_itunes_payments_and_you
First Data. (n.d.). Go-Tag. Retrieved April 8, 2011, from 2011: http://www.firstdata.com/gotag/
Francis, L., Hancke, G., Mayes, K., & Markantonakis, K. (2010). A Security Framework Model with Communication Protocol Translator
Interface for Enhancing NFC Transactions. 2010 Sixth Annual International Conference on Telecommunications (pp. 452-61). IEEE.
23. References (cont)
Grice, E. (2010, March 16). First Data to Deliver Mobile Payments with Tyfone's MicroSD-Based Contactless Technology. Retrieved March 11,
2011, from First Data: http://www.firstdata.com/en_us/about-first-data/media/press-releases/03_16_10
Haselsteiner, E., & Breitfuß, K. (n.d.). Security in Near Field Communication (NFC): Strengths and Weaknesses. Retrieved March 2011, 15,
from Institute for Applied Information Processing and Communications: http://events.iaik.tugraz.at/RFIDSec06/Program/papers/002%20-
%20Security%20in%20NFC.pdf
Kharif, O. (2011, April 1). Ingenico Is Said to Hold Talks to Buy Hypercom’s U.S. Assets. Retrieved April 5, 2011, from Bloomberg:
http://www.bloomberg.com/news/2011-03-31/ingenico-is-said-to-be-in-talks-to-buy-hypercom-s-u-s-assets.html
Kharif, O., & Galante, J. (2011, March 31). Amazon Said to Explore Mobile-Payment Service for Handsets. Retrieved April 5, 2011, from
Bloomberg: http://www.bloomberg.com/news/2011-03-31/amazon-com-said-to-be-considering-mobile-payment-service-for-
smartphones.html
McCarthy, B. (2008). Mobile Payment: The Linchpin of the Mobile Commerce Economy. Retrieved March 11, 2011, from First Data:
http://www.firstdata.com/downloads/thought-leadership/fd_mobilepayment_whitepaper.pdf
Mobility Support AG. (2011). This is Mobility. Retrieved April 8, 2011, from Mobility Car Sharing:
http://www.mobility.ch/en/pub/how_it_works/this_is_mobility.htm
NFC Forum. (2011). NFC Forum: NFC and Interoperability. Retrieved March 18, 2011, from NFC Forum: http://www.nfc-
forum.org/aboutnfc/interop/
NJ E-ZPass. (n.d.). How It Works. Retrieved April 3, 2011, from NJ E-ZPass: https://www.ezpassnj.com/static/info/howit.shtml
Ortiz, C. E. (2008, June). An Introduction to Near-Field Communication and the Contactless Communication API. Retrieved March 18, 2011,
from Oracel Sun Developer Network: http://java.sun.com/developer/technicalArticles/javame/nfc/
Rotter, P. (2008, April-June). A Framework for Assessing RFID System Security and Privacy Risks. Pervasive Computing, 70-77.
Wolfe, D. (2010, April 5). Starbucks, Target Buck NFC in Mobile Payments. Retrieved April 9, 2011, from American Banker:
http://www.americanbanker.com/issues/175_63/starbucks-target-buck-nfc-1016956-1.html?
Hinweis der Redaktion
I would like to thank the board for making themselves available to participate in this presentation on Near-Field communications as Team Onyx feels there is a time factor involved and the company must act.In this presentation we’ll provide an initial situation analysis of Near-Field communications communications. This will include an overview of the utilization of this technology, current and potential commercial uses, an overview of players in this space from a stakeholder management perspective, current external events shaping the adoption of the technology, technical and security aspects, as well as possible implications for our company.We bring this to your attention in the hopes the board will approve seed funding to allowing us to perform feasibility studies to get a better understanding of the short term and strategic implications of Near-Field communications to our business and our customers.
Near-Field Communications is technology that allows users to transact, exchange, and connect electronically via their smartphone. These exchanges can include everything from purchasing a morning coffee to transmitting healthcare data. Many people use a form of NFC in some way without even knowing it. Many office keycards use a form of NFC, as do some rapid transit tickets, and even some car keys.
It is important to understand that the Near-Field communications protocol is part of a larger field of close-range communication technologies. These other technologies include radio frequency identification (RFID), infrared data association (IrDa), and Bluetooth. Each of these technologies are differentiated based on their usability, range, and uses
There a many possibilities for use the of Near-Field communications in commerce as shown here in this slide. These could includeThe use of e-ticketing for transportation on buses, trains or even flightsProviding one the ability to access and start their automobile with their mobile phoneAllowing an employee to enter and exit securely into offices.Letting people quickly make electronic payments at merchantsAnd giving the people the ability to securely handle banking and other financial transactions
Similar technologies using RFID have been deployed in a commercial context.First Data introduced a touch free payment technology in 2009 when they installed their “Go-Tag” stickers in gas stations such as 7-Eleven. This sticker had a contactless chip that could be included on a customer’s keychain.The Stores utilized Visa Inc.’s payWave application. This technology was not widely accepted because there was not enough buzz for consumers to pick up the cards to use it.
A second example of a close field device in public use is the Ezpass. This tag is an expeditious way for drivers to pay tolls while driving on major toll ways such as the new jersey and Pennsylvania turnpikes.The RFIDDevice is embedded in a tag that a customer can mount to the windshield of their automobile or in a front side front license plate holder. The EZ Pass has been adopted by most of the northeastern corridor with a heavy usage in the New York Metro area, New Jersey, Pennsylvania, DC Metro area, Massachusetts, Delaware, and Connecticut.Applications of the EZ pass have expanded so that customers can pay for parking at major airports such as Newark and JFK.
Another application of RFID in a commercial context is the Mobility Carsharing service in Switzerland and the ZipCar carsharing service in the US. Carsharing is an upcoming alternative to automobile rental and ownership. These services are popping up in major metro areas such as Atlanta, New York, and Boston as a means to decrease the amount of automobiles clogging metropolitan streets. They utilize a Near-Field communications device so that drivers can access cars distributed at car sharing stations. For this service customers reserve time online from their home browser or mobile phone, and the driver accesses and unlocks a shared car by placing their Mobilty or ZipCard when they are authorized to use the car.A similar service and infrastructure for bicycle sharing is in place in Barcelona and in larger cities in Germany and France.
From a stakeholder management perspective, it can be rather difficult to understand the number and role of power players involved in Near-Field communications.
IT’s important to understand the players involved in
These are the financial and merchant services side players in Near-Field communications:Payment Device and technology companies such as Verofone, hypercom, and Adyen create the hardware and software that integrate in point of sale systemsFinancial and Merchant institutions such as Visa, and Citibank allow merchants to create accounts where money is handled and stored.Payment processors ensure transactions for funds transfers are authorized to take place and help move money between financial institutions. And finally indistry groups and consortia such as the
As it is known in a commercial context, the following are the parts of the Near-Field communications Commerce value chainContactless payment readers – which are devices located at the POS that read the mobile device, smart card, sticker, or other instrumentCommunications NetworkNear-Field communications Mobile DevicesProvisioning Service provisioning mobile devices with personal account information, typically provided by the phone service carriersElectronic wallet payment processor providing a user interface on the mobile device and a back-end server-based application which will allow the user to manage their transaction and account, but also handles the actual processing of the payment
Focusing on the technical aspects of Near-Field communications, it is loosely based on the principles of “contactless smart cards.” Smart cards are essentially a memory chip embedded in a card such as a bank card or the sim cards that are used in most mobile phones. With assistance from consortia, the industry is aligning on current and emerging standards. The intent is to leverage existing technologies and infrastructures so that NFC can be quickly deployed in a secure manner.
Since Near-Field communications is essentially a Radio Frequency Identification Device (RFID) using radio waves, there is a reasonable risk for misuse and attacks. Some scenarios include eavesdropping, relaying, cloning, and jamming.EavesdroppingEavesdropping is a situation where the transmission between an Near-Field communications device and the receiver is monitored from a distance or as a person with the Near-Field communications device passes by a malicious party or device (Rotter, 2008). For most passive Near-Field communications devices, special wallets, or bags shielding radio waves are available on the market.Relay/Middle Man AttacksRelay/Middle Man Attacks are when an attacker creates an intermediary connection between the legitimate Near-Field communications device and a legitimate receiver via a malicious device. Countermeasures in this situation include the use of variable, strong public/private key encryption infrastructures where the data collected in the transaction cannot be decrypted or duplicated in a separate time or context and the information passed is useless (Francis, Hancke, Mayes, & Markantonakis, 2010). Cloning/ReplayTag Cloning occurs when a malicious party obtains data through eavesdropping and creates a false signal containing duplicate/falsified information sent maliciously to a receiver for authentication. Countermeasures to this situation may include sophisticated use of multiple IDs and responses between the Near-Field communications device and the receiver (Rotter, 2008).JammingBlocking or jamming occurs when a malicious party simulates the existence of multiple tags causing a denial of service attack on the receiver. Warning functionalities may be employed to detect these attacks so that measures can be taken to detect and eliminate the attack (Rotter, 2008).
The Near-Field communications technology is highly competitive.Most of the top stakeholders have stalled adoption to position themselves as a leader in the market, but this has so far had a null effect.Competing technologies such as the Microsoft tag and Quick Response two dimensional codes are gaining quick adoption in currently deployed devices such as the iPhone, Android, and Blackberry platforms.
AT&T and Verizon have opened their venture to all payment networks, but Sprint is engaging its own networkOn the device end, there’s a battle for the Fight for Verifone/Hypercom US assets between and Ingenico, a Parisian firm and ViVOtech a Santa Clara California startup.
So let’s summarize the situation and conclude what the implications are for our company. Since there are a high number of solution providers in this space,
Since there are a high number of solution providers in this space.