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Near Field Communication

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Vaibhav Sathe
Vaibhav Sathe

Near Field Communication (NFC) allows contactless communication between devices within close proximity. Google Wallet uses NFC to allow users to store credit cards on their phones and make mobile payments at participating retailers with a tap of their phone. However, implementing mobile payments faces technical challenges regarding mobile security, interoperability between platforms, and infrastructure requirements that may delay widespread adoption, especially in developing countries like India with less mobile connectivity.

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Near Field Communication: Google Wallet Sourav | Rohith | Sanjay | Vaibhav Section ‘A’ Group 12
Agenda  Introduction to NFC  Introduction to Google Wallet  Technical Challenges  Google Wallet Ecosystem and Implications  Implementation in developing economies like India  Conclusion 2 IIM Lucknow February 17, 2013
Introduction to NFC 3 IIM Lucknow February 17, 2013
Introduction to NFC Wireless technology  operates on short ranges Communications b/w devices that  Touch each other  Momentarily held close together.  Cell Phone can be used as  Travel pass, event ticket , office pass  Pay for goods in a store  Interact with outdoor media  Placing the device near to an NFC terminal (reader).  Works in a similar way to contactless smartcards used for travel in some cities or to access workplaces. 4 IIM Lucknow February 17, 2013
The Technology  Open platform technology  Approved as an ISO/IEC global standard in December 2003  Based on Radio Frequency Identification (RFID) technology and operates at 13.56 MHz on ISO/IEC 18000-3 air interface and at rates ranging from 106 kbit/s to 848 kbit/s.  It works via magnetic field induction and operates on an unlicensed radio frequency band.  Two things are required: Tags and Reader. “Tags” embedded within Readers Read and Process Data  The technology enables such devices that are held together to share information either in one direction or both 5 IIM Lucknow February 17, 2013
Benefits and Capabilities Payments �� Access Information Healthcare - Loyalty and identity Transport – control – Consumer collection and service coupons – management ticketing and identity electronics exchange – discovery payments and and business payments management file sharing process Versatile, Open and Variety of Use Intuitive Interactivity Standards-Based from payment for goods to the interactions involving can be easily deployed in a ticketing and from pairing NFC enabled devices require large range of industries, devices to sharing information no more than a simple touch environments and or discovering new services applications Remote management Security Multi-application use is it is possible to build multiple supported by the NFC Mobile levels of security into an NFC Phones and the addition of a enabled device. mobile network enables application management 6 IIM Lucknow February 17, 2013
Comparison with Sony FelicA  Felica uses proprietary command protocol than NFC, on JIS-X 6913 standard as compared to NFC which is based on ISO-14443A standards  The lower level and framing protocols are similar in both of them.  Data can be transmitted at higher speeds using the FeliCa variation, either 212kBps or 424kBps as compared to the NFC which has typical speeds of 106 kBps.  The different command protocol technology in Felica tags enables deployment of proprietary authentication and encryption in communication messages.  Felica tags are based on Type 3 standardsof tags which are costlier than other types of Tags ( 1 and 2 types are usually used in NFC). 7 IIM Lucknow February 17, 2013
Google Wallet 8 IIM Lucknow February 17, 2013
Google Wallet – What it is  Google Wallet  a mobile payment system which allows users to use their smart phones to pay at various merchant’s store  Payments, offers, loyalty, and much more  Currently available only on Sprint Nexus 4G handset  Supported cards  Citi® MasterCard® credit card  Google Prepaid Card 9 IIM Lucknow February 17, 2013
Google Wallet 10 IIM Lucknow February 17, 2013
Google Wallet – Partners & Merchants  Issuing bank - Citi  Payment Network - Mastercard  Merchant processing and Trusted Service Manager  First Data  Mobile Operators - Sprint  Technology partners  Point of sale - VeriFone, ViVOtech, Hypercom, Ingenico  Semiconductor – NXP  Single Tap – Subway, The Container Store, Macy’s 11 IIM Lucknow February 17, 2013  Tap & Pay – Coca-Cola, CVS Pharmacy, etc
Google Offers  Attractive deals from local merchants  Offer email based on area of choice  Offers can also be searched on various Google products like Google Search, Maps, Latitude, and Shopper 12 IIM Lucknow February 17, 2013
Google Wallet - Security  PIN  Reject weak PIN like “1234”  Phone Lock  Secure Element chip  Only Trusted Service Manager (First Data) has the key to access data  Secure data transmission  Follows PCI-DSS (Payment Card Industry – Data Security Standards)  Deactivation on entering invalid pin several times  Secure Element chip non-identifiable in idle situation  Stolen Phone Deactivation 13 IIM Lucknow February 17, 2013
Technical Challenges 14 IIM Lucknow February 17, 2013
Mobile Viruses  Due to open nature of OS, Android mark infested with viruses  Can spread easily from mobiles 15 IIM Lucknow February 17, 2013
Mobile Viruses RAM  Payment Information on isolated memory on separate chip  No access to other programs  Encryption similar to magnetic tape of Credit Card 16 IIM Lucknow February 17, 2013
Phone Battery  Smartphones battery ??  Google Wallet won’t work  How to pay? Possible Solution  Passive mode communication supported  Similar to RFID  Emergency payment subject to authentication 17 IIM Lucknow February 17, 2013
Information Delivery  Delivering card information over-the-air  Internet, 3G/EDGE  Trusted Service Manager from First Data  Neutral Third Party  Trusted by both senders and receivers  DES and Secure Key Management 18 IIM Lucknow February 17, 2013
Interoperability  Currently only works with Android  Google subscription  Phone can be changed..  How to migrate financial records?  Google promised compatibility with iPhone, Windows and RIM  NFC consortium needs to actively define standards  Inter bank transfer of records  Choice to the consumer 19 IIM Lucknow February 17, 2013
Implications 20 IIM Lucknow February 17, 2013
Google Wallet Ecosystem 21 IIM Lucknow February 17, 2013
Implications of Google Wallet - Retailers  Advantages  Better serve the customer needs  Retain More Customers  Drive the right audience to store  More conversion from advertising to in-store purchase  Business Analysis  Analyze the customers  Create better loyalty programs and offers  Concerns  High Initial Cost  Skepticism in Technology & Security 22 IIM Lucknow February 17, 2013
Implications on Credit Card Companies & Banks  Advantages  Digital Money – Secure & Easy Handling  Suitable for Fast and On the Go Generation  Easy Management of Money  Enhanced Revenue  Concerns  Integration of Mobile NFC Technology with core banking process  Security & Integrity of Readers 23 IIM Lucknow February 17, 2013
Implications – Mobile Ecosystem Players  Advantages  Increased Revenue through NFC chip enabled phones  For both Chip makers and Handset OEMs  Increased data use for Mobile Carriers  Key Players in the Google Offers ecosystem  Concerns  Role of players in security of Devices and Network  Liability in case of compromise of device/network  Cost of handset may become high due to NFC chip  Need to justify the high price through successful Google Wallet 24 IIM Lucknow February 17, 2013
Implications – End Users  Advantages  One place to house all cards  No need to carry cash  Coupons too stored  Stored in Mobile  An essential tool for today  Concerns  Security  Reach of Google Wallet  Acceptance at small outlets  High Impact on compromise of data  Cards, Driver’s ID, etc 25 IIM Lucknow February 17, 2013
Implementation in India  India is seeing a economic boom  Mobile Penetration very high  Smart Phone penetration low  Mobile Internet Connectivity too low  Malls & Stores targeting Upper Middle Class could introduce Google Wallet  Free Wifi  Fast and On the Go Generation  Security Threat – Mobile theft too high in India  Non Techno savvy customers may face problems 26 IIM Lucknow February 17, 2013
Conclusion  Google Wallet  Promising Technology – Easy, Fast and Secure  Very Nascent – Implementation only in San Fransisco  Require critical mass without which it will be a failure  Very few phones with NFC chip embedded  Developing Countries like India cannot support it  Lack of Internet connectivity  High Initial Cost  Trust in one company with all data sounds risky  Hacking of Sony PSN , etc questions trust  Hope for a successful deployment with critical mass 27 IIM Lucknow February 17, 2013
Thank You 28 IIM Lucknow February 17, 2013

More Related Content

Near Field Communication

  • 1. Near Field Communication: Google Wallet Sourav | Rohith | Sanjay | Vaibhav Section ‘A’ Group 12
  • 2. Agenda  Introduction to NFC  Introduction to Google Wallet  Technical Challenges  Google Wallet Ecosystem and Implications  Implementation in developing economies like India  Conclusion 2 IIM Lucknow February 17, 2013
  • 3. Introduction to NFC 3 IIM Lucknow February 17, 2013
  • 4. Introduction to NFC Wireless technology  operates on short ranges Communications b/w devices that  Touch each other  Momentarily held close together.  Cell Phone can be used as  Travel pass, event ticket , office pass  Pay for goods in a store  Interact with outdoor media  Placing the device near to an NFC terminal (reader).  Works in a similar way to contactless smartcards used for travel in some cities or to access workplaces. 4 IIM Lucknow February 17, 2013
  • 5. The Technology  Open platform technology  Approved as an ISO/IEC global standard in December 2003  Based on Radio Frequency Identification (RFID) technology and operates at 13.56 MHz on ISO/IEC 18000-3 air interface and at rates ranging from 106 kbit/s to 848 kbit/s.  It works via magnetic field induction and operates on an unlicensed radio frequency band.  Two things are required: Tags and Reader. “Tags” embedded within Readers Read and Process Data  The technology enables such devices that are held together to share information either in one direction or both 5 IIM Lucknow February 17, 2013
  • 6. Benefits and Capabilities Payments – Access Information Healthcare - Loyalty and identity Transport – control – Consumer collection and service coupons – management ticketing and identity electronics exchange – discovery payments and and business payments management file sharing process Versatile, Open and Variety of Use Intuitive Interactivity Standards-Based from payment for goods to the interactions involving can be easily deployed in a ticketing and from pairing NFC enabled devices require large range of industries, devices to sharing information no more than a simple touch environments and or discovering new services applications Remote management Security Multi-application use is it is possible to build multiple supported by the NFC Mobile levels of security into an NFC Phones and the addition of a enabled device. mobile network enables application management 6 IIM Lucknow February 17, 2013
  • 7. Comparison with Sony FelicA  Felica uses proprietary command protocol than NFC, on JIS-X 6913 standard as compared to NFC which is based on ISO-14443A standards  The lower level and framing protocols are similar in both of them.  Data can be transmitted at higher speeds using the FeliCa variation, either 212kBps or 424kBps as compared to the NFC which has typical speeds of 106 kBps.  The different command protocol technology in Felica tags enables deployment of proprietary authentication and encryption in communication messages.  Felica tags are based on Type 3 standardsof tags which are costlier than other types of Tags ( 1 and 2 types are usually used in NFC). 7 IIM Lucknow February 17, 2013
  • 8. Google Wallet 8 IIM Lucknow February 17, 2013
  • 9. Google Wallet – What it is  Google Wallet  a mobile payment system which allows users to use their smart phones to pay at various merchant’s store  Payments, offers, loyalty, and much more  Currently available only on Sprint Nexus 4G handset  Supported cards  Citi® MasterCard® credit card  Google Prepaid Card 9 IIM Lucknow February 17, 2013
  • 10. Google Wallet 10 IIM Lucknow February 17, 2013
  • 11. Google Wallet – Partners & Merchants  Issuing bank - Citi  Payment Network - Mastercard  Merchant processing and Trusted Service Manager  First Data  Mobile Operators - Sprint  Technology partners  Point of sale - VeriFone, ViVOtech, Hypercom, Ingenico  Semiconductor – NXP  Single Tap – Subway, The Container Store, Macy’s 11 IIM Lucknow February 17, 2013  Tap & Pay – Coca-Cola, CVS Pharmacy, etc
  • 12. Google Offers  Attractive deals from local merchants  Offer email based on area of choice  Offers can also be searched on various Google products like Google Search, Maps, Latitude, and Shopper 12 IIM Lucknow February 17, 2013
  • 13. Google Wallet - Security  PIN  Reject weak PIN like “1234”  Phone Lock  Secure Element chip  Only Trusted Service Manager (First Data) has the key to access data  Secure data transmission  Follows PCI-DSS (Payment Card Industry – Data Security Standards)  Deactivation on entering invalid pin several times  Secure Element chip non-identifiable in idle situation  Stolen Phone Deactivation 13 IIM Lucknow February 17, 2013
  • 14. Technical Challenges 14 IIM Lucknow February 17, 2013
  • 15. Mobile Viruses  Due to open nature of OS, Android mark infested with viruses  Can spread easily from mobiles 15 IIM Lucknow February 17, 2013
  • 16. Mobile Viruses RAM  Payment Information on isolated memory on separate chip  No access to other programs  Encryption similar to magnetic tape of Credit Card 16 IIM Lucknow February 17, 2013
  • 17. Phone Battery  Smartphones battery ??  Google Wallet won’t work  How to pay? Possible Solution  Passive mode communication supported  Similar to RFID  Emergency payment subject to authentication 17 IIM Lucknow February 17, 2013
  • 18. Information Delivery  Delivering card information over-the-air  Internet, 3G/EDGE  Trusted Service Manager from First Data  Neutral Third Party  Trusted by both senders and receivers  DES and Secure Key Management 18 IIM Lucknow February 17, 2013
  • 19. Interoperability  Currently only works with Android  Google subscription  Phone can be changed..  How to migrate financial records?  Google promised compatibility with iPhone, Windows and RIM  NFC consortium needs to actively define standards  Inter bank transfer of records  Choice to the consumer 19 IIM Lucknow February 17, 2013
  • 20. Implications 20 IIM Lucknow February 17, 2013
  • 21. Google Wallet Ecosystem 21 IIM Lucknow February 17, 2013
  • 22. Implications of Google Wallet - Retailers  Advantages  Better serve the customer needs  Retain More Customers  Drive the right audience to store  More conversion from advertising to in-store purchase  Business Analysis  Analyze the customers  Create better loyalty programs and offers  Concerns  High Initial Cost  Skepticism in Technology & Security 22 IIM Lucknow February 17, 2013
  • 23. Implications on Credit Card Companies & Banks  Advantages  Digital Money – Secure & Easy Handling  Suitable for Fast and On the Go Generation  Easy Management of Money  Enhanced Revenue  Concerns  Integration of Mobile NFC Technology with core banking process  Security & Integrity of Readers 23 IIM Lucknow February 17, 2013
  • 24. Implications – Mobile Ecosystem Players  Advantages  Increased Revenue through NFC chip enabled phones  For both Chip makers and Handset OEMs  Increased data use for Mobile Carriers  Key Players in the Google Offers ecosystem  Concerns  Role of players in security of Devices and Network  Liability in case of compromise of device/network  Cost of handset may become high due to NFC chip  Need to justify the high price through successful Google Wallet 24 IIM Lucknow February 17, 2013
  • 25. Implications – End Users  Advantages  One place to house all cards  No need to carry cash  Coupons too stored  Stored in Mobile  An essential tool for today  Concerns  Security  Reach of Google Wallet  Acceptance at small outlets  High Impact on compromise of data  Cards, Driver’s ID, etc 25 IIM Lucknow February 17, 2013
  • 26. Implementation in India  India is seeing a economic boom  Mobile Penetration very high  Smart Phone penetration low  Mobile Internet Connectivity too low  Malls & Stores targeting Upper Middle Class could introduce Google Wallet  Free Wifi  Fast and On the Go Generation  Security Threat – Mobile theft too high in India  Non Techno savvy customers may face problems 26 IIM Lucknow February 17, 2013
  • 27. Conclusion  Google Wallet  Promising Technology – Easy, Fast and Secure  Very Nascent – Implementation only in San Fransisco  Require critical mass without which it will be a failure  Very few phones with NFC chip embedded  Developing Countries like India cannot support it  Lack of Internet connectivity  High Initial Cost  Trust in one company with all data sounds risky  Hacking of Sony PSN , etc questions trust  Hope for a successful deployment with critical mass 27 IIM Lucknow February 17, 2013
  • 28. Thank You 28 IIM Lucknow February 17, 2013