nfc: perspectives and menaces (english)
TRANSCRIPT
President of the Russian E-Money AssociationDirector for New Payment Technologies, Bank Tavrichesky
London, 20 June 2012
What you can do with NFC on emerging markets: example of Russia
Dr. Victor Dostov
Population: 142 mln. (&)
Number of banks 1 039
GDP per capita 15 800$
Russia means big
SIM cards per person: 1.6
Number of smartphones sold annually 12 mln.
Share of prepaid phones 95%
Russia means mobile
eWallets top up, 2011: $4 000 000 000
Active eWallets 34 mln.
Growth rate, per year 70%
Russia means e/m-wallets
1. Choose a service 2. Deposit cash 3. Payment is done
Electronic payment kiosk: how it works?
300 000
Topping-up mobile phone
account (Airtime)
Money on mobile account transformed into e-moneyE-Money may used for
P2P or P2B transactions
The Law lays down groundbreaking (for Russia) provisions:
*Legal definition of “Electronic money”
*Who regulates E-money sector?
*How should M-commerce work?
New Realities.Federal Law “On National Payment System”
* Classic
*Modern
*Avant-garde
Three NFC segments
Classics
PayWay and PayPass cards are now accepted at:
Fast food chains… …Urban trains… …Some petrol stations
And other locations (yet, regions and stand-alone stores are slow to catch up
Podorozhnik Card(more than 250 000 issued since 2011)
• Contactless stored-value card
• Accepted in all types of public transport in St-Petersburg, in
future – on suburban trains and elsewhere
• Topped-up online (with bank card or e-money), with prepaid
mobile phone or in cashRussian Oyster-type
card
Modern
Universal Electronic Card
• Identification document –Identification application
• Payment Instrument –2 payment applications
• Key to E-Government services
*Free for population
* Global applications : Transport, medical
insurance, driving license
*Local applications : Transport, fishing
permits, access, etc.
Universal Electronic Card
*Government+consortium of private and
government-associated banks
* First release date 01.01.2012, 50 mln cards
to issue
* Moved to 01.01.2013
UEC: infrastructure
* 350 000 devices are expected in 2013
* Both on-board (SWP) and SIM-based
solutions
* Sponsored by MNO
NFC in Mobiles
Avant-garde
*Contactless cards coupled with e/m
wallets and prepaid airtime accounts
*New payment technologies are flexible and adjustable:
NFC card/phone
Converging new and very new financial services
*New payment technologies are flexible and adjustable:
NFC card/phone
Converging new and very new financial services
e
*Most dangerous to NFC is its hi-tech
nature
Challenges to NFC (mobile only)
*Customer ownership debates
Challenges to NFC
* Slow development
USB 1.0 -> 3.0
GSM 1G -> 4G
WiFi 802.11b -> 802.22
Challenges to NFC
* Total connectivity
NFC vs 4G
Challenges to NFC
