NFC Industry Update

Koichi Tagawa, Chairman, NFC Forum

Tap Into NFC Seminar, Tokyo
9 February 2016
LATEST MARKET DEVELOPMENTS

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NFC MARKET GROWTH (CAGR)

50.6%
43.7%

2013 - 2019 2014 - 2019

Source: Transparency Market Source: Technavio
Research
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NFC MARKET OPPORTUNITY
.

By 2020, over 2b NFC devices will ship

globally

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MOBILE NFC PAYMENT IS EXPANDING GLOBALLY

Apple Pay Samsung Pay Android Pay

1M users within 72 hours Launched in S. Korea, US Supports open development

2500 banks, 1M locations $30M/mo. In S. Korea Carriers on board
Expanded to UK in June NFC + MST HCE-based payment projects
all over the world

Full scale deployment of Mobile Payment in US

Accelerating Contactless infrastructure investment

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 BEYOND PAYMENT

Consumer Electronics Gift Card

Vending Machine Pairing Support

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NEW IMPLEMENTATION

Gaming Automotive

Wearable Logistics

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PARADIGM SHIFT: WHAT NFC BRINGS

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FROM COMPANY DRIVEN TO INDUSTRY DRIVEN
Economies of Scale Next Stage
Security: Chip base to total optimization
Industry Driven New feature: Wireless Charging

1 model, Global Market NFC Popularity in B2C product Standard Feature on Mobile OS
Market Structure Shift Industry Structure Shift App Development Process Shift
Regional base to Global base Vertical to Horizontal Integration MNO centric to Mobile OS centric

Product Enhancement
Card/RW to Mobile/Embedded device
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2 BILLION CLASS PLATFORM
Impact on B2C market
Billions of deployed NFC devices now available to support your service offering
New use cases can be introduced on Day 1 over the platform

Impact on B2B market

Enables easy development of contactless applications without dedicated equipment
Commoditization of acceptance terminal
Market figure of FY2014: POS terminal 30M unit vs. NFC device 500M unit

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THE ABILITY TO CONNECT THE UNCONNECTED
Its The Internet of Things, not The Internet of
Electronic Things
Need a way to embed intelligence in
unpowered, unconnected objects and things
Need a way to gather data from unpowered,
unconnected objects and things

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INTEGRATION OF COMMUNICATION AND CHARGING
Small Form Factor Single Antenna
Advantage of 13.56MHz, small antenna Enable charging over NFC without any other
Possible adoption with limited space antenna implementation

Foreign Object Detection Transmission Power Configuration
Fracture prevention of NFC Tag Power optimization depends on target device
Auto suspension in case of object detection
1W 6W

Receiver
Transmitter
Transmitter Field Power
Control

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BENEFITS OF NFC CARD EMULATION

Carry all your cards, all the time

Works on existing contactless card infrastructures
Get your card issued via network
Your card can be online enriched
Your card can be bio-metrics authenticated
Other device features, GPS, camera, etc., can further
enrich user experiences

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ROLE OF THE NFC FORUM
NFC Forum

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NFC FORUM MISSION
The NFC Forum brings the
convenience of NFC technology to
life. We empower organizations to
deliver secure, tap-based interactions
with an intuitive, reliable experience
to users around the globe.

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SPONSOR MEMBERS

PRINCIPAL MEMBERS

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ASSOCIATE MEMBERS

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IMPLEMENTER MEMBERS

NON-PROFIT MEMBERS

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THE NFC FORUM REPRESENTS

All of the worlds major:

chip vendors
payment service providers
smart phone manufacturers
mobile operating system providers

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NFC FORUM SPECIAL INTEREST GROUPS
Special Interest
Groups (SIG)
SIG Working Group and Task
Force activities build value
across key market sectors.
Efforts are open to all
members.
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Technical
Committee
Six Working Groups lead
technical discussions, and
create and maintain all
aspects of the NFC Forum
technical specifications.
Activities are open to all
members except Implementer
members, with voting rights
for Sponsor and Principal
Members.
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Compliance Japan
Committee Task Force
Three Working Groups This group was established to
manage the framework for the promote NFC to this regional
NFC Forum Certification market and overcome the
Program and Plugfest Events. challenges of migration from
Activities are open to all its legacy infrastructure. Key
members except Implementer players in the region have
members, with voting rights been sharing NFC use cases
for Sponsor and Principal and best practices, as well as
Members. identifying opportunities to
expand activities with the SIG
Working Groups.
LIAISON PARTNERS

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 THANK YOU!

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