phones as reader/writer - secure technology alliance · nfc solutions summit 2012 23rd may 2012...

PHONES AS READER/WRITER NFC SOLUTIONS SUMMIT 2012 23RD MAY 2012 NICK NORMAN

Agenda

Consult Hyperion Role

NFC Phone as a Reader

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Introduction to Consult Hyperion

Consult Hyperion has helped some of the world’s leading organisations to make the right technical and commercial choices within and around mobile, contactless and NFC-enabled payments

and transit ticketing.

Consult Hyperion acts as the “Client’s Friend”, adding product strategy, technical, regulatory, compliance and information security expertise into project teams within organisations considering deploying innovative new payment or identity

services.


Consult Hyperion References (NFC)

Barclaycard Orange Quick Tap


The First Commercially Available Mobile Contactless Payment Service in

the UK

Consult Hyperion References (Mobile Contactless) O2 Mobile Wallet


Agenda

Consult Hyperion Role



NFC Phone as a Reader The Success of Square The Success of Square in the USA ! Early 2010 - Launched ! December 2011 – 1 Million Merchants

! April 2012 - Transacting $11 million a day ! Device sold through 9,000 retail locations


Sources, Techcrunch.com, SplatF.com


Mobile POS – The Vision

Opens Card Payments to Tier 3 & 4 Merchants ! “Card payments are a convenience” ! Cannot justify the cost of hiring and running a full Chip & PIN Terminal


NFC Phone as a Reader Can we implement this with NFC?


Terminal Application Loaded into the Secure Element


PIN Entry?

PED is a Shared Device at Merchant ! Used for multiple customers ! Online and Offline PIN

Mobile Phone is a Dynamic Personal device ! Lots of applications loaded and deleted ! Including Malware, principally Key-Loggers or Trojans

! QR Codes have been used to spread Malware

Merchant’s Phones are even less trust worthy!


NFC Phone as a Reader Schemes have Defined a New CVM

Mobile Device is Not PED Qualified ! For high value payments on mobile devices, Offline PIN is not an

allowed CVM.

! Mobile devices offer the possibility of Cardholder Device CVM.

Method defined by PAYEZ* Acceptable CVM List for Mobile Contactless ! No CVM ! Signature

! Cardholder Device CVM* ! Online PIN

* http://payezmobile.com/media/upload/pdf/181/090210-dossier_presse_uk.pdf


NFC Phone as a Reader A Replacement for Cash?

Expected to increase the number of terminals in the UK to circa ! 3m within two years (MPOS) ! 10m within 7 years (NFC enabled mobile phones)

Accelerate the migration of transactions from cash to cards ! Arguably the most successful Cash Replacement strategy

Source: Consult Hyperion, Piran Partners 2011


NFC Phone as a Reader Emergence of P2P Solutions Pingit in the UK ! Launched Feb 2012 ! Payment Initiated using Recipients Phone Number

! Completed using Faster Payments ! Limit £300 per day

Does the SMB need a Mobile POS device?


NFC Phone as a Reader More than Payments SMB Want the Same Services as Major Retailers Can we bundle Complementary Services targeted at specific sectors ! Loyalty, Coupons ! Link to Online Accounting Package

! Automate Other Tasks !   Time and Attendance

!   Stock Taking

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NFC Phone as a Reader The Smart Tag Lost Cost Memory Chip ! Store limited data, similar to a Barcode or QR code ! Can Be Re Programmed

! More Secure – NFC Forum Standards ! Embedded in a Range of Devices


Access Control Smart Posters Time and Attendance

NFC Phone as a Reader Credential Verification Using the Card to Validate ID’s ! Does he have the right training? ! Is he the right age?

Two solutions ! Download the right application into the phone

! Read ID and remotely validate credentials


NFC Phone as a Reader This all Becomes More Relevant When there is NFC in Other Devices


Questions and Answers

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For Further Information

About Consult Hyperion www.chyp.com [email protected] +44 7966 003 332

About Mobile Payments twitter @chyppings

browse http://www.chyp.com listen http://www.tomorrowstransactions.com

comment http://www.digitalmoneyforum.com/blog


phones as reader/writer - secure technology alliance · nfc solutions summit 2012 23rd may 2012...

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