nfc and hce 2016 - what’s next?
TRANSCRIPT
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Alexander Rensink, Vice Chairman, NFC ForumHCE+Tokenization Summit AmsterdamNovember 25, 2016, Amsterdam
NFC And HCE 2016 - What’s Next?
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Advancing Near Field Communication Technology2
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.
NFC FORUM MISSION
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THE NFC FORUM REPRESENTSAll of the world’s major:● Chip vendors ● Payment service providers ● Smart phone manufacturers● Mobile operating system providers● 150 member companies
Collaborations with industry consortia:
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NFC AND THE CONNECTED WORLD
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Technology trends creating opportunity for NXP
80% of the world’s economic value will come from connectivity improvements to existing cars, devices, and Internet of Things
Source: Euromonitor; Gartner; ARM Holdings; UBS; Center for Strategic and International Studies; McAfee, NXP analysis, International Telecommunications Union
NFC-enabled mobile device growth & new auto service trends driving NFC market
growth1
Everything connected
Everything smart
Everything secure
1B+ additional consumers online, 50B+ connected
devices
80B+ more devices with intelligence by
2017
Economic impact of cyber-attacks
nearing half-trillion dollars
FUTURE: NFC-CONNECTIVITY EVERYWHERE
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NFC-ENABLED WORLDWIDE-RANGING USER EXPERIENCES EVERYWHERE
Access
Connected
Car Connected Home
Smart
Ticketing
Marketing
SmartTransport
HCE harnesses NFC to elevate connectivity across
the connected world
Retail
5
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LATEST MARKET DEVELOPMENTS
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GLOBAL NFC MARKET GROWTH
Source 1: IHSSource 2: Global Market Insights Source 3: Strategy AnalyticsSource 4: JuniperSource 5: ABI Research
Installed base of NFC enabled handsets of 2.6 billion units by end 2016 and 330+ different models in the marketplace5
2.2 billion NFC-enabled handset shipments by 20201
• NFC adopted across all handset OEMs, covering all OSs
• 72% by 20203, up from 52% in 20163 and 18%1
in 2013• Apple Pay, Samsung Pay, Android Pay, etc.
• Global NFC market to reach US$47B2 by 2024Mobile payments with handsets reached 148 million consumers this year⁴
1
Source: IHS
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NFC SIM AND SECURE EMBEDDED ELEMENT GROWTH CONTINUES
Eurosmart, May, 2016 http://www.eurosmart.com/facts-figures.html
• 570 million units forecasted for 2016 SIM and eSE or 15% growth from previous year
• 9,765 million units forecasted to ship in 2016
• Telecom represents 50% of shipments
• 63% shipment growth for Device Manufacturers
Includes NFC UICC Secure Element, Embedded Secure Element and Embedded UICC
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HCE GROWTH STARTS AND RAMPING FAST
Banks embracing NFC and HCE as a strategy3:
• 55 banks introduced HCE-based services as of Jan. 2016, up from 7 in 2014
• Asia and Europe leading the way with 40+ HCE introductions
• Beyond smartphones, HCE could possibly be supported on other devices such as wearables
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MOBILE PAYMENT OPTIONS AND CHARACTERISTICS
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MOBILE PAYMENT SECURITY MODELS
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HCE IN ACTION
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HCE GROWTH ACROSS NFC-ENABLED EMV TRANSACTIONSToday:● HCE supported by major payment schemes:
Visa, MasterCard, AMEX, Discover, UnionPay, JCB, others
● Banks have rolled out HCE-based payment services Australia, UK, Scandinavia, Russia, Taiwan, Canada and more Royal Bank of Canada HCE wallet integrates over 150 loyalty
programs
● 85% of market share of global smartphone shipment can potentially support HCE1
Android, Windows Phone, and BlackBerry OS
● Visa Pay and Mastercard Masterpass continue to grow HCE offerings Masterpass is accepted at 5 million merchant locations in 77
countries
Source: NFCWorld+
Source 1: IDC
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THE NEXT OPPORTUNITY: NFC-BASED PUBLIC TRANSPORT (ESE + SIM + HCE)● NFC and HCE mobile train ticket purchase trial this fall
in West Yorkshire, UK ● 13 mobile-transit payment services launched or
scheduled to launch this year in US, including Atlanta, Los Angeles, and Washington
● UK Cards Association announces framework for nationwide NFC public transport payment
● Montreal pilots NFC transport payments with 100 employees
● NFC transport payments to pilot three month trial in Adelaide this fall
● Dublin bus and railroad commuters to use NFC to pay for transport
● Activation rates for NXP/Xiaomi NFC mobile transit solution in China grew 15% in Shanghai and over 20% in Shenzhen since services launched in June 2016
HCE App enables ticket purchases on their mobile phoneSource: Euro Transport Magazine
300 million will use contactless ticketing on mobile and wearables by 2021. Source: Juniper Research
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WE WANT YOU TO:
WE WANT YOU:
WE WANT YOU:
BECOME A LEADER IN THE RAPIDLY GROWING NFC INDUSTRY
JOIN THE NFC FORUM!
For more information on how to get involved: http://nfc-forum.org/
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THANK YOU!
Questions?