2. Agenda
Introduction to NFC
Introduction to Google Wallet
Technical Challenges
Google Wallet Ecosystem and Implications
Implementation in developing economies like India
Conclusion
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4. Introduction to NFC
Wireless technology
operates on short ranges
Communications b/w devices
that
Touch
each other
Momentarily held close together.
Cell Phone can be used as
Travel pass, event ticket , office
pass
Pay for goods in a store
Interact with outdoor media
Placing the device near to an
NFC terminal (reader).
Works in a similar way to
contactless smartcards used
for travel in some cities or to
access workplaces.
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5. The Technology
Open platform technology
Approved as an ISO/IEC global
standard in December 2003
Based on Radio Frequency
Identification (RFID) technology and
operates at 13.56 MHz on ISO/IEC
18000-3 air interface and at rates
ranging from 106 kbit/s to 848 kbit/s.
It works via magnetic field induction
and operates on an unlicensed radio
frequency band.
Two things are required: Tags and
Reader.
“Tags” embedded within Readers
Read and Process Data
The technology enables such devices
that are held together to share
information either in one direction or
both
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6. Benefits and Capabilities
Payments –
Access Information
Healthcare - Loyalty and identity Transport –
control – Consumer collection and
service coupons – management ticketing and
identity electronics exchange –
discovery payments and and business payments
management file sharing
process
Versatile, Open and
Variety of Use
Intuitive Interactivity Standards-Based
from payment for goods to
the interactions involving can be easily deployed in a
ticketing and from pairing
NFC enabled devices require large range of industries,
devices to sharing information
no more than a simple touch environments and
or discovering new services
applications
Remote management
Security Multi-application use is
it is possible to build multiple supported by the NFC Mobile
levels of security into an NFC Phones and the addition of a
enabled device. mobile network enables
application management
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7. Comparison with Sony FelicA
Felica uses proprietary command protocol than NFC, on JIS-X 6913 standard as compared to
NFC which is based on ISO-14443A standards
The lower level and framing protocols are similar in both of them.
Data can be transmitted at higher speeds using the FeliCa variation, either 212kBps or
424kBps as compared to the NFC which has typical speeds of 106 kBps.
The different command protocol technology in Felica tags enables deployment of proprietary
authentication and encryption in communication messages.
Felica tags are based on Type 3 standardsof tags which are costlier than other types of Tags ( 1
and 2 types are usually used in NFC).
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9. Google Wallet – What it is
Google Wallet
a mobile payment system which
allows users to use their smart phones
to pay at various merchant’s store
Payments, offers, loyalty, and much
more
Currently available only on Sprint
Nexus 4G handset
Supported cards
Citi® MasterCard® credit card
Google Prepaid Card
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11. Google Wallet – Partners & Merchants
Issuing bank - Citi
Payment Network - Mastercard
Merchant processing and Trusted Service
Manager
First Data
Mobile Operators - Sprint
Technology partners
Point of sale - VeriFone, ViVOtech, Hypercom,
Ingenico
Semiconductor – NXP
Single Tap – Subway, The Container Store,
Macy’s
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Tap & Pay – Coca-Cola, CVS Pharmacy, etc
12. Google Offers
Attractive deals from local
merchants
Offer email based on area of choice
Offers can also be searched on
various Google products like
Google
Search, Maps, Latitude, and
Shopper
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13. Google Wallet - Security
PIN
Reject weak PIN like “1234”
Phone Lock
Secure Element chip
Only Trusted Service Manager (First
Data) has the key to access data
Secure data transmission
Follows PCI-DSS (Payment Card Industry
– Data Security Standards)
Deactivation on entering invalid pin
several times
Secure Element chip non-identifiable
in idle situation
Stolen Phone Deactivation
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15. Mobile Viruses
Due to open nature of OS, Android mark
infested with viruses
Can spread easily from mobiles
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16. Mobile Viruses
RAM
Payment Information on isolated memory on
separate chip
No access to other programs
Encryption similar to magnetic tape of Credit
Card
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17. Phone Battery
Smartphones battery ??
Google Wallet won’t work
How to pay?
Possible Solution
Passive mode communication supported
Similar to RFID
Emergency payment subject to authentication
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18. Information Delivery
Delivering card information
over-the-air
Internet, 3G/EDGE
Trusted Service Manager
from First Data
Neutral Third Party
Trusted by both senders
and receivers
DES and Secure Key
Management
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19. Interoperability
Currently only works with Android
Google subscription
Phone can be changed..
How to migrate financial records?
Google promised compatibility with
iPhone, Windows and RIM
NFC consortium needs to actively define
standards
Inter bank transfer of records
Choice to the consumer
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22. Implications of Google Wallet - Retailers
Advantages
Better serve the customer needs
Retain More Customers
Drive the right audience to store
More conversion from advertising to
in-store purchase
Business Analysis
Analyze the customers
Create better loyalty programs and
offers
Concerns
High Initial Cost
Skepticism in Technology &
Security
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23. Implications on
Credit Card Companies & Banks
Advantages
Digital Money – Secure & Easy
Handling
Suitable for Fast and On the Go
Generation
Easy Management of Money
Enhanced Revenue
Concerns
Integration of Mobile NFC
Technology with core banking
process
Security & Integrity of Readers
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24. Implications – Mobile Ecosystem Players
Advantages
Increased Revenue through NFC chip enabled phones
For both Chip makers and Handset OEMs
Increased data use for Mobile Carriers
Key Players in the Google Offers ecosystem
Concerns
Role of players in security of Devices and Network
Liability in case of compromise of device/network
Cost of handset may become high due to NFC chip
Need to justify the high price through successful
Google Wallet
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25. Implications – End Users
Advantages
One place to house all cards
No need to carry cash
Coupons too stored
Stored in Mobile
An essential tool for today
Concerns
Security
Reach of Google Wallet
Acceptance at small outlets
High Impact on compromise of data
Cards, Driver’s ID, etc
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26. Implementation in India
India is seeing a economic boom
Mobile Penetration very high
Smart Phone penetration low
Mobile Internet Connectivity too low
Malls & Stores targeting Upper Middle Class could
introduce Google Wallet
Free Wifi
Fast and On the Go Generation
Security Threat – Mobile theft too high in India
Non Techno savvy customers may face problems
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27. Conclusion
Google Wallet
Promising Technology – Easy, Fast and Secure
Very Nascent – Implementation only in San Fransisco
Require critical mass without which it will be a failure
Very few phones with NFC chip embedded
Developing Countries like India cannot support it
Lack of Internet connectivity
High Initial Cost
Trust in one company with all data sounds risky
Hacking of Sony PSN , etc questions trust
Hope for a successful deployment with critical mass
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