NFC Lecture
smart poster
A smart poster is a smart advertising space for interactive dialogue with consumers. A recent study showed that consumers are very open to Smart Posters, and would engage with them almost anywhere.
Market Analysis
Mobile payments are facilitated by the increasing popularity of smartphones, the availability of POS terminals that are equipped to process transactions using NFC. Global mobile payments to reach $721 billion in 2017
Overview
NFC allows a user to merely wave their smartphone over a NFC compatible device to send or receive information. Communications are established automatically, not requiring set-up by users as in the case of many other wireless communication technologies.
ISIS
NFC enabled terminals 1,000 participating merchants to date; only active in Austin, TX and Salt Lake City, UT Software-based mobile wallet, organizing credit and debit cards, loyalty cards and special offers in one app A joint venture of AT&T, T-Mobile and Verizon
Google Wallet
NFC enabled terminals Any store that supports NFC payments- over 200,000 merchants in the US Cloud-based version supports credit and debit cards from Visa, MasterCard, AmEx and Discover Merchants are featured on Google's "Where it Works" map
Standardization
NFC is a joint venture of various technologies. As several technologies are involved, when developing near field communication devices and new technology NFC standards must be met. Standards exist to ensure that all forms of near field communication technology maintain interoperability between different wireless communication methods and will work with newer devices in the future.
NFC Core
Payment
Applications
Payment and nonpayment options
Key Players
Paypal number 1 Google Wallet MAster Card Square Wallet V.me by Visa
Initiator
the device that starts the communication and guides data exchange between two parties NFC phone and NFC reader
Active Devices
those containing power sources In active communication mode both devices are active and use their own energy to generate their own RF field to transmit the data. NFC phones and readers
Passive Device
those without any available power source NFC Tags/Sticker In passive communication mode the initiator is an active device that generates the RF field while the target device makes use of the energy created by the active device.
Bluetooth Low Energy (BLE)
BLE-enabled smartphones listen for signals from wireless transmitters (BLE Beacons) the size of large match boxes.
NFC Adjacent
COupon Loyalty Advertising Store check-in Ticketing Transport
Card Emulation mode
Card emulation mode provides the opportunity for an NFC mobile to function as a contactless smart card. Some examples of emulated contactless smart cards are credit cards, debit cards, loyalty cards and so on. One NFC mobile may even store multiple contactless smart card applications concurrently. The card emulation mode is an important one since it enables payment and ticketing applications and is compatible with existing smart card infrastructure.
NFC Beyond
Healthcare, authentication, Identity management, fleet management, Shopping 2.0, Smart city, Sharing
Applications - Payment
Heralded as the technology that will make mobile payment an everyday reality!
Peer-to-peer mode
In peer-to-peer mode, two mobiles exchange data between each other. Since both mobiles have integrated power, each one uses its own energy by being in active mode. Bidirectional half duplex communication is performed in this mode similar to other modes, meaning that when one device is transmitting, the other has to listen and can start transmitting data after the first one finishes.
Clear Channel "Connect", France
Like this Disney ad in a French shopping mall - people walking by could interact with the ad by holding their phone to the kiosk.
NFC Helps Defy Voter Suppression, USA
Rock the Vote's 'We Will' out-of-home media campaign aimed to defy voter suppression efforts in the home stretch. Launching across the nation, this campaign educated young people about changes in pending or passed legislation that make it harder for them to vote, and reminded them of their collective power. Participants can connect with the interactive campaign by tapping or scanning the Smart Posters' to immediately register to vote, without having to download external applications.
Active vs passive and initiator vs target
The Initiator always needs to be an active device because it requires a power source to initiate communication. The Target, however, may be either an active or passive device. If one device is not active, then its passive communication mode. IF both are active then its active communication mode
Target
The device that responds to request made by initiator NFC tags, mobile
LilyPad "Floating UV sensor", USA
Using dual sensors embedded in the LilyPad, users can enjoy real-time temperature and UV data on their phone or tablet device. Armed with this information, swimmers can immediately make an informed decision about whether the sun is too strong, or which SPF sunscreen to put on based on personalized advice on skin type.
Consumer preferences
When asked which technology will be most successful in driving mobile commerce, consumers chose NFC by a wide margin over cloud-based BLE and QR codes, in spite of the fact that the NFC ecosystem is hugely complex and competing technologies continue to emerge.
What is Near Field Communication (NFC)
a short-range, wireless connectivity technology based on Radio-Frequency Identification (RFID) that allows for contactless communication between two NFC-enabled devices with a few centimeters of each other.
NFC tag or sticker
an RFID tag that has no integral power source and stores a small amount of information for transfer to another NFC device.
NFC mobiles
are the most important NFC devices. Increased integration of NFC technology with mobile phones creates a big opportunity for the ease of use and acceptance of the NFC ecosystem.
NFC reader
capable of data transfer with an NFC component. The most common example is the contactless POS (Point of Sale) terminal which can perform contactless NFC enabled payments when an NFC device is touched against the NFC reader.
two acting parts in nfc
initiator target
Apple Pay
Apple debuted Apple Pay with the new iPhone 6 and Apple Watch. This service takes advantage of NFC technology, a dedicated chip called Secure Element, and Touch ID, allowing users to purchase goods with the tap of their phone or watch once they set up an account with their credit or debit card details. Apple Pay has also announced support for Bluetooth Low Energy (BLE), which will also allow users to receive offers, content, coupons, and vouchers via in-store beacon networks.
Applications - Nonpayment
NFC-enabled mobile phones brought about a new era in consumer marketing, enabling manufacturers and retailers to gather highly specific data about consumer buying patterns and habits, and delivering targeted promotions, loyalty programs and other campaigns that appeal to specific consumers. NFC-shopping combines efficient management of information from e-commerce with the physical shop environment that most shoppers prefer, changing the shopping experience by bringing individualized information to the consumer right in the place of purchase. Groupe Casino
Near Field Communication (NFC)
NFC-enabled smartphones communicate with wireless transmitters (NFC Tags) the size of postage stamps. NFC Tags only communicate when close to an NFC-enabled smartphones.
Technology Overview
Near Field Communication was officially developed by Sony, Nokia and Philips in 2004, who jointly created the NFC Forum and standardized the technology, ensuring that all forms of NFC technology maintain interoperability and will work with newer devices in the future.
Coupons
Nearly 96.8 million smartphone owners 18 and older use a mobile coupon. 1 in 4 mobile phone users redeem a coupon via a mobile device.
One-To-Many
ONE TO MANY : BLE beacons repeatedly transmit a discovery packet. When a consumer's BLE-enabled smartphone is within range of the transmission, it receives the packet and measures the signal strength to determine an approximate distance from the beacon. The OS then extracts the beacon ID from packet and makes the ID available to the appropriate app. The app interrogates the ID to determine the next action. Apple Pay, PayPal Wallet
one to one
ONE TO ONE : The consumer observes an NFC Tag affixed to an object with which they wish to engage. They place their NFC-equipped smartphone within 4 centimeters of the NFC Tag. Radio waves from the smartphone cause the NFC Tag to power-up its internal microprocessor. Once powered-up, it executes a stored program. The program typically transmits the contents of the Tag's memory to the smartphone. The smartphone executes an action based upon the received content. Google Wallet, ISIS
Security
Providing contactless communication at distances of about 4 centimeters, NFC's transmission range is so short that it is inherently secure from malicious parties intercepting communications. Also, physical proximity of the device to the reader gives users the reassurance of being in control of the process. With NFC's one-to-one communication medium, secure communications for the transfer of monetary value and private information is made possible
Reader/writer mode
Reader/writer mode provides a communication of NFC mobile with an NFC tag. The purpose of the communication is either reading or writing data from or to a tag by the mobile phone. We can further categorize this mode into two different modes: reader mode and writer mode. In reader mode, the mobile reads data from an NFC tag; whereas in writer mode, the mobile phone writes data to an NFC tag.
Consumer Benefits of NFC mobile payments
Reliability at POS NFC contactless transactions are reliable, with certified terminals providing greater first time read reliability than standard magnetic stripe readers. Security Payment credentials are stored securely in the NFC-enabled mobile device's secure element, protecting the credentials from skimming and account compromise. The card and transaction authentication process used in contactless transactions leverages dynamic cryptogram technology, which is significantly more secure than current magnetic stripe technology. Ease-of-use and convenience Mobile phones provide an easy and intuitive interface allowing the consumer fast and convenient access to payment accounts. Payment and loyalty accounts are managed in the mobile wallet, eliminating the consumer's "fat wallet." Mobile phones provide new convenience features, for example, storing payment records on the phone and integrating with other value-add programs (e.g., loyalty and promotions). New contactless transaction acceptance points (e.g., NFC-enabled vending machines) increase consumer convenience by reducing the need for carrying cash and coins. Wallet functionality Mobile wallets provide consumers with the ability to use a single device to support multiple payment brand options. Wallets can also provide additional functionality, including: storing and providing access to merchant-specific payment products; supporting payment, loyalty and merchant promotions (e.g., coupons); storing receipts; and providing organized tracking of offers and promotions. Acceptance Mobile wallets provide consumers with the ability to use a single device to support multiple payment brand options, without carrying multiple form factors. New contactless transaction acceptance points (e.g., NFC-enabled vending machines and other unstaffed acceptance points) increase consumer convenience by reducing the need for carrying cash and coins. Recent payment brand announcements providing incentives for merchants to move to contactless and contact POS terminals to support EMV will drive ubiquity of contactless POS acceptance over the next five years. Device deployment/availability A wide variety of handsets are expected to support NFC in the next two years, providing consumers with a choice of mobile device. MicroSD or other bridging technologies provide the consumer with the potential to add NFC to an existing handset, providing flexibility and choice. Additional value-add applications Mobile devices and wallets provide consumers with the potential for additional value-add applications (for example, providing savings from instant/specialized offers tailored to shopping patterns or tied to consumer location, or supporting additional value-added functions such as key entry to clubs).
VivaLnk "eSkin Thermometer", USA
Sticker connect to baby, use NFC phone to read their temperature
Stripe
Stripe - PayPal's biggest competitor as a payment processor - is founded with an ambitious goal: "make it easy for any business anywhere to transact with any customer anywhere." "There is still a significant barrier to buying and selling things online around the world. Stripe is removing boundaries on the Internet, so consumers can buy things from anywhere and in any currency, including Bitcoin, and merchants can be global from day one." High security - When using Stripe.js on the websites, the credit card data entered into their payment form will never be sent to the server. Unified APIs in mobile and online transactions - Clean, consistent, well documented, and complete APIs that handle companies' needs from storing cards and processing subscriptions to powering marketplaces and everything in between. Bitcoin payments integration - Fluctuation-resistance; the merchant can avoid exchange rate hassles by specifying amounts in U.S. dollars and receiving payment dollars. Stripe also offers Bitcoin payments integrated into the same reporting as credit cards.
The Gap "Like with a High Five," Japan
Two Gap stores in Tokyo participated in the "Like with a High Five" Summer T Coordinates campaign, in which customers connected the app to their Facebook account and then got a bracelet in-store to act as an identifier. When customers saw a staff member wearing an outfit they like, they "high-fived" by touching the bracelet to their smartphone. The phone, after making a cheering sound, sent the outfit to the Facebook feed of that customer.
Lexus in Wired Magazine
Wired magazine and Lexus teamed up to create what they said was the first mass-produced print ad embedded with Near Field Communication. The ad allowed readers with NFC-enabled phones to "test drive" the new Lexus Enform simply by holding their phone up to the ad. Wired magazine said that due to this successful campaign they received interest for NFC-enabled ads in other brand categories, such as clothing and for retail coupon circulars.
