Near Field Communications Technology Overview

1. Team Onyx 15April 2011 2. Overview and Purpose Provide an initial situation analysis of NFC Request for seed funding to investigate the cost of integrating Near-Field Communications as a part of Onyxs commercial structure 3. Overview Near-Field Communications allows users to transact, exchange, and connect via their smartphone. Used in office security ID cards and car keys. 4. Similar Devices Comparing NFC to other close range communication technologies (Ortiz, 2008) 5. Potential Uses 6. Current Uses for SimilarDevicesFirst Data GO-Tag RFID Tag used on a keychain Possible to replace cash and credit cards Used Visas payWave application Not enough buzz 7. Current Uses for SimilarDevicesE-Z Pass Close-Field Device Allows automobiles to pay tolls Works with most interstate toll roads in Northeastern US Some expanded uses allow payment at airport parking lots 8. Current Uses for SimilarDevicesZip Car (US) and Mobility (CH)Car Sharing Services Automobile sharing services using RFID/NFC card NFC card allows members to access shared rental cars distributed throughout metropolitan areas Similar infrastructure in place for bicycle sharing in Barcelona, Germany, and France 9. Stakeholder AnalysisView of industry players. 10. Stakeholder ViewMobile Technology Companies Device Makers Mobile OS Operators Makers 11. Stakeholder ViewPayment Device and Technology Financial and Merchant Institutions Payment Processors Industry Groups 12. Market Potential Payments would hit $150 B by 2015 per Frost and Sullivan Gartner projects 340 M mobile users will make $245 BUSD in transactions by 2014 Jupiter Research projected up to 700 million NFC enable mobile phones will be sold by 2013, representing 25% of the market 13. Required Infrastructure Contactless Payment Readers Networks NFC Device Provisioning Service Electronic Payment Processor 14. Technical Aspects NFC is based on combination of Contactless Smart Cards and RFID technologies Current emerging standards are ISO 14443 and 18092 Attempt to leverage current infrastructures and standards 15. Possible Threats, Attacks,and Countermeasures Eavesdropping Relay/Middle Man Attacks Cloning/Replay Jamming 16. Challenges Highly competitive situation Most key stakeholders are stalling adoption to position themselves to lead the market Competing technologies are on an upswing Various optical bar codes Has limitations as some readers rely on optics 17. Quick Turning Point in March2011 AT&T and Verizon have opened their venture to all payment networks, but Sprint is engaging its own network Fight for Verifone/Hypercom US assets between Ingenico and ViVOtech Amazons announced Android Appstore 18. Initial Implications High potential for this in a commercial context High number of stakeholders in this space Movement is quick Underlying theme is convergence based on current and emerging technological standards Hope to utilize current e-commerce and pay transaction infrastructure 19. Initial Implications Will require cross functional involvement from: Marketing and Promotions E-commerce Sourcing Information Technology Telecom Information Security Legal 20. High Level Plan Mobilize resources Send NDA and RFI to select, key hardware and software players mentioned earlier Evaluate impact to current organizational practices Evaluate interface points and impact to Onyxs current e-commerce infrastructure Build strategy and business cases to include in current and future budget cycles. 21. Thank youTeam Onyx15 22. ReferencesNear Field Communications Business Models. (2011). Retrieved March 21, 2011, from Near Field Communications World: http://www.nearfieldcommunicationsworld.com/Nexus - Google. (2011). Retrieved March 28, 2011, from Google: http://www.google.com/nexus/The Guardian. (2011). From moconews.net: http://moconews.net/Balaban, D. (2009, October 26). Large C-Store Chain Goes to Go-Tag Sticker. Retrieved March 11, 2011, from NFC Times: http://www.nfctimes.com/news/large-us-convenience-store-chain-sell-contactless-stickersBensinger, B. (2011, April 5). AT&T, Verizon Wireless to Open Venture to All Payment Networks. Retrieved April 5, 2011, from Bloomberg: http://www.bloomberg.com/news/2011-04-05/at-t-verizon-wireless-to-open-venture-to-all-payment-networks.htmlBenson, C. C. (2010, February 23). NFC vs. Not-NFC, or "Why Put Card Data on the Phone?" A look at Mocapay. Retrieved March 11, 2011, from PaymentsViews: http://paymentsviews.com/2010/02/23/nfc-vs-not-nfc-or-%E2%80%9Cwhy-put-card-data-on-the-phone%E2%80%9D-a- look-at-mocapay/Brown, C. (2011, March 20). NFC will catch on like wildfire says Sundance festival game creator. Retrieved April 5, 2011, from Near Field Communications World: http://www.nearfieldcommunicationsworld.com/2011/03/20/36516/nfc-will-catch-on-like-wildfire-says-sundance- festival-game-creator/Elavon, Inc. (2011). About us. Retrieved April 8, 2011, from http://www.elavon.com/acquiring/about/index.aspx: http://www.elavon.com/acquiring/about/index.aspxEurosmart. (2010, December). Figures. Retrieved March 21, 2011, from Eurosmart: http://www.eurosmart.com/index.php/publications/market-overview.htmlEvans, J. (2011, March 18). iPhone 5: Apple, NFC, iTunes payments and you. Retrieved March 29, 2011, from Computer World: http://blogs.computerworld.com/17996/iphone_5_apple_nfc_itunes_payments_and_youFirst Data. (n.d.). Go-Tag. Retrieved April 8, 2011, from 2011: http://www.firstdata.com/gotag/Francis, L., Hancke, G., Mayes, K., & Markantonakis, K. (2010). A Security Framework Model with Communication Protocol Translator Interface for Enhancing NFC Transactions. 2010 Sixth Annual International Conference on Telecommunications (pp. 452-61). IEEE. 23. References (cont)Grice, E. (2010, March 16). First Data to Deliver Mobile Payments with Tyfones MicroSD-Based Contactless Technology. Retrieved March 11, 2011, from First Data: http://www.firstdata.com/en_us/about-first-data/media/press-releases/03_16_10Haselsteiner, E., & Breitfu, K. (n.d.). Security in Near Field Communication (NFC): Strengths and Weaknesses. Retrieved March 2011, 15, from Institute for Applied Information Processing and Communications: http://events.iaik.tugraz.at/RFIDSec06/Program/papers/002%20- %20Security%20in%20NFC.pdfKharif, O. (2011, April 1). Ingenico Is Said to Hold Talks to Buy Hypercoms U.S. Assets. Retrieved April 5, 2011, from Bloomberg: http://www.bloomberg.com/news/2011-03-31/ingenico-is-said-to-be-in-talks-to-buy-hypercom-s-u-s-assets.htmlKharif, O., & Galante, J. (2011, March 31). Amazon Said to Explore Mobile-Payment Service for Handsets. Retrieved April 5, 2011, from Bloomberg: http://www.bloomberg.com/news/2011-03-31/amazon-com-said-to-be-considering-mobile-payment-service-for- smartphones.htmlMcCarthy, B. (2008). Mobile Payment: The Linchpin of the Mobile Commerce Economy. Retrieved March 11, 2011, from First Data:http://www.firstdata.com/downloads/thought-leadership/fd_mobilepayment_whitepaper.pdfMobility Support AG. (2011). This is Mobility. Retrieved April 8, 2011, from Mobility Car Sharing:http://www.mobility.ch/en/pub/how_it_works/this_is_mobility.htmNFC Forum. (2011). NFC Forum: NFC and Interoperability. Retrieved March 18, 2011, from NFC Forum: http://www.nfc- forum.org/aboutnfc/interop/NJ E-ZPass. (n.d.). How It Works. Retrieved April 3, 2011, from NJ E-ZPass: https://www.ezpassnj.com/static/info/howit.shtmlOrtiz, C. E. (2008, June). An Introduction to Near-Field Communication and the Contactless Communication API. Retrieved March 18, 2011, from Oracel Sun Developer Network: http://java.sun.com/developer/technicalArticles/javame/nfc/Rotter, P. (2008, April-June). A Framework for Assessing RFID System Security and Privacy Risks. Pervasive Computing, 70-77.Wolfe, D. (2010, April 5). Starbucks, Target Buck NFC in Mobile Payments. Retrieved April 9, 2011, from American Banker:http://www.americanbanker.com/issues/175_63/starbucks-target-buck-nfc-1016956-1.html?