This presentation was held at the MobileTech Conference 2012 in Munich. I had help from my colleague Simon Kegler (kegler@servtag.com) to put this all together. It shows that the market is changing, but we are still at the prototype and project phase. There is few real business cases around NFC in markets yet (other

1. NFC – Quo Vadis?
Dr. Florian Resatsch
CEO, servtag GmbH.
Berlin

2. Android® Beam™ @ MWC 2012

3. Near Field Communication (NFC): Technology
NFC: It is Radio Frequency Identification (RFID) in consumer
devices. It has been introduced in 2002.
… and it comes in many shapes….

4. ... and why most of you have no NFC phone
vs.

5. The future of mobile NFC – use cases
Ticketing
and
???
Payment
Pilots Card-based
NFC
Mobile
Phone
based NFC

6. The future of mobile NFC – use cases
Ticketing
and
1. Enabling Payment
applications
2. B2B
?
Pilots applications
3. Social
Networking

7. 2. Current Players in the NFC
Ecosystem

8. Current Players in the NFC-Ecosystem
• Internet Companies
• Payment Networks
• Mobile Operators
• Handset Manufacturers
• Software Developers
• Technical Developers (chips)
• What is missing?
– STARTUPS!!!!!!

9. 3. Market Situation
3.1 Handset Devices

10. NFC Handset Manufacturers
• Over 40 devices total
• 20 different manufacturers
• Samsung leading the way (8 current devices)
• Other big players
– Nokia
– HTC
– Motorola
– LG Samsung Galaxy Nexus
– Huawei Source:
http://www.nfcworld.com/nfc-
– BlackBerry devices/google-galaxy-nexus/
BlackBerry Curve 9350
Source:
http://www.nfcworld.com/nfc-
devices/blackberry-curve-

11. NFC Handset Manufacturers – Coming
• At least 30 more devices in 2012
– Samsung once again leading the pack (own payment
solution on the way)
– Nokia/ Windows Phone 7s to be NFC-compatible
– Samsung rolling out on all Bada-devices
– ZTE (4th largest manufacturer ww) for all Android devices
+ Tablet devices (at least 10 in 2012)
Where does that leave us?
40 Mil. NFC-enabled devices shipped in 2011
 120 Mil. in 2012…
 NFC becoming standard feature on smartphones
Winows Phone 7 on Lumia Series
Source:
http://www.microsoft.com/windowsphone/de-

12. And what about...the big apple?
• YES or NO?
– No sign of NFC chip in any of
Apple‘s mobile devices (iPhone,
iPad, iPod)
– Unlike other players, no
cooperation with payment
providers or mobile operators
for NFC...
Source: http://www.logolook.de/wp-
content/uploads/apple_logo.jpg

13. 3. Market Situation
3.2 Scope

14. Mobile Payment – the key driver
• USA
– Internet Companies
– Payment Networks (Wallet Technology)
– Retailers
• Europe
– Mobile Operators
– Large JV‘s to face Google and other large
players
• Asia
– Market well established
– Technology hub
– Mobile Operators

15. Ticketing and Entry Systems – more convenience
• Established, but yet not widely
spread
• March 2012 survey
(nfcworld.com): 50% of US-
commuters ready to use NFC
phone for transit payments
Source:
Tests around the Globe http://i.dailymail.co.uk/i/pix
/2011/01/27/article-
– HID Global /Arizona State
1350709-
0CEC88CE000005DC-
491_634x408.jpg
University (2011): physical
access control for 13.000
university students
Source:
http://images.avisian.com/asu_nfc_1

16. Loyalty and Couponing – creating measurable
value
• Replacing loyalty cards with applications on
NFC phone
• Securely collect and redeem loyalty points
touch- and seemlessly
• Electronic coupon redemption
– Easy to use, intuitive
– 100% measurable for increased performance
analysis
– Use of NFC-sticker on phone can replace need
for NFC device
– Strong focus on large retailers
Source:
http://www.zapatechnology.co
m/technology/zapa-tag.html

17. Marketing and Advertising – innovative
performance
• Proximity marketing and hyper-local
promotional campaigns
• Rich-media interaction with consumers
• In-depth analytics and campaign-
management
• Allows for end-to-end tracking in
combination with NFC-payment
 100% performance marketing
Source: http://2d-
code.co.uk/first-nfc-
marketing-campaign/

18. Others
• Sharing:
– Business card, MM-formats,
documents, calendars
• BlackBerry Tag
• Android Beam Source:
http://www.cnwintech.com/wp
-
content/uploads/2011/10/CNW
• Fun: Tag-A-Bag
INTECH_Google_Luncurkan_An
droid_4_Ice_Cream_Sandwich_
Android_Beam.jpg
– User interaction with objects of
personal life and creation of virtual
paths Source: http://assets.vr-
zone.net/13719/bbtag.jpg
– Innovative marketing approach with
strong opportunities for relevant
advertisement

19. Other: Mobile health
Satisfying
special
needs

20. Other: B2B applications – Security

21. HYPER LOCALIZATION
Utility and Design Patent
servtag™

22. Exemplary pictures of bars in Berlin with stickers

23. 3. Market Situation
3.3 Limiting Factors

24. Security Concerns
• Fed consumer survey (2012): 25% interested in
using mobile wallet system, 12% feel safe doing so
– Mobile operators leading role in Europe as drivers of
technology
– Secure Element in NFC Chip/SimCard
• Standardisation and norms
(What happens if.... I put my phone to a malware
tag with NFC logo?)
Source:
http://krowne.files.wordpress.com/20
11/03/nfc_n-mark.gif

25. Stationary NFC-ports in Europe
• Up to 120 Mil. NFC-phones worldwide by
end of 2012, but where will they be used?
– UK: 60.000 payment ports installed
– France: Nice, Caen, Strasbourg to roll out
contact points -> still trials
– Spain: Telefonica to announce NFC plans
– No mass-rollout in Germany due to
reluctance on retailer and customer side to
trust technology
Source:
http://news.preisgenau.de/wp-
content/uploads/2011/03/nfc-handys

26. Costs
• NFC-enabled SIM-card: 3-4x cost of
regular cards
• Extreme investments for installment
of readers and ports
Source:
http://www.cutmysim.com/wp-
content/uploads/2010/05/93365914-

27. 4. NFC Cases
What‘s been done, what‘s to come

28. Samsung to build wallet platform
• “Samsung Wallet” to pose major
challenge for mobile operators and
existing payment providers
• Massive challenge for Google
• Embedded secure chip for all NFC
phones
• Coops with Visa payWave and
MasterCard PayPass possible Source: http://www.nfctimes.com/news/samsung-
plans-offer-nfc-mobile-payment-service

29. Carte Magique and OCAN in Nice
• Loyalty program
– increase traffic to local retailers
– Promote businesses to shoppers
• 200 retailers equipped with NFC
readers
• Interaction through loyalty
platform „Loyalty Operator“
• Access with NFC card or mobile
phone and „Loyalty Avenue“ app
Source:
http://www.fncv.org/html/upload/3_fiches_techniq
ues_dynamisation/302_cartes_fidelite_collectives/NI
CE_CARTE_FIDELITE.png

30. San Francisco Transportation
Agency/PaybyPhone
• One of the largest NFC projects
globally
• 30.800 NFC-enabled parking
spaces for easy identification of
location, input of parking times,
and payment transaction
• To be rolled out throughout US
and CAN in 2012
Source: www-paybyphone.com

31. Museum of London/Nokia
• 90 NFC Tags next to
artwork
• Guided tours for visitors
• Weblinks to artwork,
purchase of tickets for
new exhibitions, social
network integration,
share with friends
Source:
http://www.nozio.de/img/london_gu
ide_museum_london.jpg

32. think&go wins Best NFC Application Gold Award
at WIMA NFC (2011)
• Shopping application for visually
disabled (285Mil. worldwide)
• Application builds personal
profile(likes&dislikes, allergies, budget)
• supports helpful features such as Text-
to-speech, Tap-to-basket, Mobile
Payment)
Source: http://www.thinkandgo-
nfc.com/index.php/news/item/64-thinkgo-nfc-
unveils-nfc-retail-solution-as-the-last-meter-
influencer-at-wima-2011.html

33. 5. Outlook

34. This year, expect...
...the big players to battle it out in the USA for market position
...Google to face difficulties attracting partners
...Isis to delay nationwide launch
...Target, Wal-Mart, and co. to gain significance
...many handset manufacturers to ship with pre-installed wallets
… Apple to set a sign!

35. Also look for...
…mobile operators in Europe to seek ownership of NFC payment
...no pertinent mass-consumption of NFC applications
...UK and France to become NFC-leaders in Europe
...Germany to be very slow to adapt
…it all to lead up to a massive NFC-explosion in 2013?

36. Dr. Florian Resatsch
servtag GmbH.
resatsch@servtag.com