NFC Resources: White Papers, Analyst Reports and Videos

White Papers

Alternatives for Banks to Offer Secure Mobile Payments 

Mobey Forum has released a white paper which examines the role of the secure element in advancing the mobile financial services ecosystem.  

Executive Summary
Security is one of the fundamental elements of any payment solution. Financial Institutions increasingly seek to mitigate the risk of fraud in order to protect their customers and hence their own payment franchise. Enhanced security on plastic cards requires a so-called "Secure Element (SE)" - like a chipcard - to store the bank's payment credentials (security keys) and other critical data. One example is the introduction of "Chip and PIN" (EMV chip-based security) on cards in Europe to replace magstripe-based systems. While the direction for plastic cards seems clear, the Industry is looking for ways to secure Mobile Payments at a comparable level. The question is then, which SE in the mobile handset is available to facilitate the mass-market introduction of secure
mobile payments? Mobey Forum has taken this topic as a subject of the current White Paper. It elaborates on the question how different Secure Elements (SEs) can enable Financial Institutions (FIs) to offer Mobile Financial Services (MFS) and hence empower the take-off of the MFS ecosystem. It is targeted at business managers in Financial Institutions. For them, it strives to clarify the business implications of the various technical SE alternatives. 

The Benefits of Mobile NFC for Air Travel

GSMA and IATA have joined forces to develop this initial common understanding of the opportunities that mobile NFC could bring to the air-traveler.  


This document identifies the  benefits that Universal Integrated Circuit Card (UICC, also known as the “SIM card”)-based, mobile Near Field Communications (NFC) services can bring to the airline industry, airport authorities and the air-traveller. GSMA and IATA have joined forces to develop this initial common understanding of the opportunities that mobile NFC could bring to the air-traveler. This forms the basis for future collaboration to 
develop the ideas and concepts presented in this document. Six different use cases have been defined where mobile NFC can bring great benefits to the airlines, airport authorities and the airtraveller, namely: 

•  Passenger check-in
•  Baggage check-in
•  Security check-point
•  Lounge access
•  Boarding 
•  Post-flight

Each use case is introduced and the benefits to each party defined.This will form the basis of further, more detailed, collaborative work to be conducted by GSMA and IATA. The primary focus of the white paper is on the improvements brought by mobile NFC to airline and airport operations and the benefits that innovative services can bring to the customer’s journey 

Trusted Service Management: The Key to Accelerating Mobile Commerce
As major players struggle to define their roles in the emerging mobile commerce ecosystem, how they enable one critical service will make all the difference between slow and rapid acceptance of mobile commerce by consumers. 
NFC (Near Field Communication) chip: NFC chips enable mobile devices to send account information to contactless payment readers at customer check-outs and other points of sale. These NFC chips can also read 
information stored in contactless-enabled tags placed on objects such as advertising collateral and consumer products 
Secure element: The secure element is a smart card module (USIM, embedded secure element or separate secure element like a secure SD memory card) used for storing and accessing applications and data in a 
secure manne

Mobile payments – Keep Moving
Capgemini presents an approach for financial institutions to seize the opportunities presented by emerging mobile payment technologies.

Mobile Retail Initiative
In order to help retailers adapt to the new technology, the National Retail Federation has launched its Mobile Retail Initiative to offer best practices and learning opportunities for retailers entering the mobile space.

Proximity Mobile Payments: Leveraging NFC and the Contactless Financial Payments Infrastructure
Smart Card Alliance:  Now, virtually every industry group involved in the transaction chain is investigating the use of mobile payments. And mobile payment will soon be a standard transaction method for payment in many North American merchant locations.

European Payments Council (EPC) publishes NFC white paper
EPC has published a white paper which examines the ways in which NFC technology could be used to deliver compatible mobile phone-based payments services across the 32 countries of the Single Euro Payments Area (SEPA).

Near Field Communication Forum’s White Paper on Use of NFC in Public Transport
Produced by NFC Forum members who are involved in the transport ecosystem, the 33-page illustrated White Paper will be of interest to transport operators, transport authorities and other stakeholders, offering an introduction to the potential uses, benefits, and setup of NFC technology in public transport programs.

Analyst Reports

Mobile Payments: 2010 to 2014

The 110-page report explores how stakeholders can unite to exploit this growth market and substantially increase revenues in the coming years.

U.S. Mobile Payments: The Time Has Come
A new report from Aite Group provides a roadmap to mobile payments in the United States.

Lessons from the Mobile Payments Leader: What the World Can Learn from the Japanese Market
Using the Japanese model, Celent identifies ways for the US and other countries to learn how to lay the groundwork for faster, more successful implementations of mobile NFC payment solutions.

Cell Phone Mobile Payment Market Set for Take Off
Global usage of near field communication (NFC) technology in cell phones is expected to begin an explosive growth phase starting next year, paving the way for a boom in the mobile payments business.

Case study: Mobile payments – Keep moving
Mobile payments are a hot topic of conversation right now. One of the major international card providers, Visa Europe, has added its significant weight to the discussion by announcing a tie-up with mobile payments specialist, Monitise.

Videos

iPhone 5 & NFC

Tapped-In: PayPal Aces Mobile Payments

VeriFone CEO on Securing Mobile Payments

Starbucks Mobile Payment Live Demonstration

Related articles

• DOCOMO and Twitter Plan NFC Service (epaymentnews.blogspot.com)
• Visa's push to utilise NFC in mobile payment (vodafone.com.au)
• NFC system to let you pay for dinner via cell phone (news.cnet.com)
• ISIS NFC Mobile Commerce: Not in 2011 (socialtimes.com)
• 63% of Younger Generation Eager for NFC & Mobile Payments (readwriteweb.com)
• 361 Degrees podcast episode #4 - NFC (allaboutsymbian.com)

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MasterCard Survey finds Consumers, Particularly Trend-Setting 18-34 Year Olds, Have Sights Set on Mobile Phone Payments

May 19, 2011 11:30 AM Eastern Daylight Time 

New Survey Finds Mobile Phones Are Taking on Even More Value in Consumers’ Lives - Many Now Even Want Their Phones to Replace Their Wallets

“2011 is the beginning of the NFC mobile payments era, and consumers are eager to get their hands on the first commercial deployments in the U.S.”

PURCHASE, N.Y.--(BUSINESS WIRE)--Increasingly, technology is changing what we consider possible, from unlocking a car from inside the house to recording a movie remotely. With this evolution, the mobile phone has become the most important technology accessory, with younger generations fueling this movement.

Consumers are now poised for the next step – using their smartphones as mobile wallets, according to a new survey by MasterCard Worldwide. The study, conducted by Kelton Research, shows 62 percent of Americans who use a mobile phone would be open to using their device to make purchases wherever their errands may take them.

“Consumers are already living a mobile lifestyle so using their phones to make payments on a daily basis is a natural next step,” said Mung-Ki Woo, group executive, mobile at MasterCard Worldwide. “2011 is the beginning of the NFC mobile payments era, and consumers are eager to get their hands on the first commercial deployments in the U.S.”

Younger Generations in Particular will Drive this Demand for Mobile Payments

Defined as a mobile generation with its pulse on digital trends, 18-34 year-olds are particularly ready to take their transactions to the next level:

• According to the study, 63 percent of 18-34 year olds would be at ease using mobile phones to make purchases versus those age 35 or older (37 percent).
• Consumers ages 18-34 (65 percent) feel more naked without their phones than their wallets, compared to 34 percent of those in the 35 and older group.

In a separate 2010 survey conducted by MasterCard Advisors, respondents under 30 years of age showed this demand has also been building for the past few years. This group is increasingly hungry for mobile payment options and access to their funds:

• Between 2009 and 2010, respondents showed a 67% increase (15% in 2009 to 25% in 2010) in the number of purchases made with their mobile phones.
• In this time period, this audience also increased their daily mobile phone access to their bank’s online banking service by 79% (14% in 2009 to 25% in 2010).

Perception is Important

This growing willingness to use a mobile phone for payments supports the role mobile phones play as a reflection of personality, and consumers’ desire not to carry a traditional wallet. According to the study, consumers value mobile phones not just for the functions they can perform, but for what they say about them too. Over half (54 percent) of respondents think that someone’s phone is more telling of their personality than their wallet.

“When credit and debit cards were first introduced, consumers welcomed the improvements they made to the speed, convenience and reliability of transactions,” said Woo. “Now with the mobile wallet ready to revolutionize this experience again, consumers have even more to gain as their phones take on additional functionality and value in their lives.”

Gender Divides How Consumers Evaluate Mobile Payments

As the mobile wallet goes mainstream, gender will play a role in how it’s perceived and used. While men see their phones as functional necessities, women take a more personal approach to their mobile devices. According to the survey, men tend to be more willing to use their phones for payment transactions, and they perceive the transactions in a positive way:

• More men than women (51 percent vs. 40 percent) who have a mobile phone would be at ease using it to make purchases.
• More men than women (49 percent vs. 45 percent) would be impressed by someone who paid a bill with a mobile application than with a credit card.

While women are slightly more conservative about mobile phone purchasing decisions, they highly value the content stored on their phones:

• Women more so than men (50 percent vs. 36 percent) feel more exposed without their mobile device than their wallets.
• Of women, 45 percent (vs. 34 percent of men) would rather have their phones than their wallets surgically attached so they’d always remember them when leaving the home.

Trust and Privacy are Critical to Consumer Comfort

Despite reliance on mobile devices and general consumer readiness for mobile payments, the survey revealed that overall safety is a significant comfort factor in the decision to pay by phone. Nearly two in three respondents (62%) said they need confirmation that their personal information is safe in order to be comfortable making a transaction, underscoring trust and privacy as paramount factors in changing payment behaviors.

Survey Methodology

The MasterCard Mobile Survey was conducted by Kelton Research between April 15th and April 22nd 2011 via email invitation and an online survey. Quotas are set to ensure reliable and accurate representation of the total U.S. population ages 18 and over.

About MasterCard Worldwide

As a leading global payments company, MasterCard Worldwideprides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere. MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide. In 2010, $2.7 trillion in gross dollar volume was generated on its products by consumers around the world. Powered by the MasterCard Worldwide Network – the fastest payment processing network in the world – MasterCard processes over 23 billion transactions each year and has the capacity to handle 160 million transactions per hour, with an average network response time of 130 milliseconds and with 99.99 percent reliability. MasterCard advances global commerce through its family of brands, including MasterCard(R), Maestro(R), and Cirrus(R); its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass(TM) and MasterCard inControl(R). MasterCard serves consumers, governments, and businesses in more than 210 countries and territories. For more information, please visit us at www.mastercard.com. Follow us on Twitter: @mastercardnews.

Contacts

MasterCard Worldwide
Joanne Trout, 1-914-249-6644
joanne_trout@mastercard.com

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