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Contactless smart devices … markets and trends
Contactless smart devices … markets and trends
Contactless smart devices … markets and trends
Agenda
• Introduction to Eurosmart
• Contactless market trends
• The payment blockbuster
• Contactless opportunities– Devices innovation – NFC– Convergence
Activity deployed through dedicated working groups: Security, Market Intelligence, Form factors, e-ID, NFC, etc.
A Worldwide reference for Market analysis Eurosmart Vision of the Smart & Secure
World in 2020
The Voice of the Smart Security The Voice of the Smart Security IndustryIndustry
EUROSMARTEUROSMART is a non-profit association is a non-profit association created in 1995 representing 21 created in 1995 representing 21
companies of the Smart Security Industry companies of the Smart Security Industry for multi-sector applicationsfor multi-sector applications
Objectives and missionsObjectives and missions
• Provide a platform for the exchange of Marketing and Technical data
• Define consistent range of quality and security levels
• Encourage interoperable solutions and defend reputation and ethics of the Smart Security Industry by combating counterfeiting
• Monitor the development of possible smart cards applications (e-Gov, e-Health, e-ID, transports, e-Banking, etc.)
• Standardisation - orient the content of standards and promote European standards worldwide
• Lobby international and national bodies
• Gain Time and Money Share expertise, knowledge and know-how Increase the efficiency of your research activities Benefit from Eurosmart global communication strategy and
optimise your visibility
• Create Added Value Be part of marketing actions: figures and market trends Be represented on the International scene through Eurosmart
partnerships with Associations worldwide and the ISCAN network Participate to yearly high quality conferences
• Improve Your Long Term Strategy Be informed on future European regulations Be part of Eurosmart in lobbying actions Meet your counterparts and develop common strategies
• Make your voice heard Take part to working groups and share your vision on the future of
the Smart Security Industry Benefit from Eurosmart position as one of the main industrial
partner of the European institutions
Values and benefits for membersValues and benefits for members
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Inside Contactless introduction
A Fabless IC company of 160 people created in 1995
… with a VISION
WHY PROVENCE?
Card body
Microprocessor chipAntenna
“Contactless smart cards & NFC technology will change the way we interface with the world.”
In a snap shot, a company with– global presence & strong revenue growth
– strategic and financial investors : Vertex ,Sofinnova ,GIMV , Granite , HID ,Visa , Nokia, Motorola, Samsung ,Qualcomm
– Technology breakthrough :
• new microprocessor architecture
• unique IP : 60 families of patents - “essential status” by NFC forum
– 2 large & converging markets :
• >60% Market share on Contactless payment
• First to market with “full standards” NFC offer.
The Contactless Storm (1/2)
+30% growth in 2008, over performing the global Smart Card market
220M contactlessDevices delivered
in 2008
45% of volumes on Financial Serviceswith the highest
67% growthand 100MU
delivered in 2008
Financial Gvt/Health
Transport Others
0
20
40
60
80
100
2007
2008
45%45%45%45%27%27%27%27%
14%14%14%14%14%14%14%14% Segments Mix
in 2008
Financial Gvt/Health
Transport Others
0
200
400
600
800
C'less
Contact
The Contactless Storm (2/2)
Outside SIMs, Contactless already represents25% of global card market volumes
15%15%15%15%43%43%43%43%
100%100%100%100%46%46%46%46%
Contactlesspenetration in card segments
C’less Payment Momentum in North America
• 75M cards issued in 2008– Support for all major brands: MasterCard PayPass, Visa payWave, American
Express ExpressPay and Discover– 31 issuers in North American with major new issuers and significant follow-
on from current issuers (40% growth over prior year)– Rapid adoption in Canada (7.5 MU since 2007)– Credit, debit, pre-paid debit applications– Active pilots underway for converged transit and other next-gen applications– Participation by all major card manufacturers: Gemalto , Giesecke &
Devrient, Oberthur, Sagem Orga , CPI ,
10
11
US deployment
130 Mu chips delivered since 2006
700Ku terminals at 80 ku merchants
Unleashing Devices Innovation
• Contactless offers “free” form factor plain old ISO Card format
• New devices format have developed with some success– Key Fobs & USB Tokens – Stickers – NFC Mobile Phones
• This fuels new usages, opens new segments and triggers growth opportunities
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the ID applications iceberg
E-passports
ID cards as travel documents
Enterprise, Corporate, Universities, Clubs, etc.
-Greencards-Vehicule ID-e-citizen-Healthcare-Visas-EBT, etc.
ID documentsSingle, orMulti-applications Target
ICAO LiteTarget
ICAO Lite
Convergence: The Next Frontier
• Multiple Payment Brands• Multiple Applications• Multiple Packages• Best Cardholder Experience• Convergence: Transit, Access, Loyalty
• Next Generation Transit Solution• Open Standard Security Infrastructure• Multiple Application Standards• Fast & Flexible• Convergence: Payment, Access, ID
Convergence: The Next Frontier
• Multiple Standard RF Protocols• HID iClass Support• High Performance• Convergence: Payment, Transit, ID
• ICAO System Compatibility• Light Weight Data Storage• Interoperable & Affordable• Fast Transaction Performance• Flexible for Customization• Multi-Application Convergence
NFC phones
isX X X
XX
>4
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Contactless Card or
RFID tag
ultimate simplicity of Man Machine Interface
Reader mode
Device to device
Card emulation
NFC , how it works
Likelihood of NFC deployments
Complexity of services
Time
mPayment- Transport- Closed systems- Visa/MasterCard
Phone makersPhone makers
Svce Providers
Svce Providers
Banks / MNOsBanks / MNOs
First Gen NFC Phones
First Gen NFC Phones
StickersStickers
Full NFC promise
Full NFC promise
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The Contactless Agenda
• For the past three years, contactless devices have steadily out beaten classic smart card growth, representing now 25% of this segment (outside SIM Cards)
• Payment is one of the blockbuster, with 100M devices delivered in 2008 and an impressive 67% growth
• Contactless frees the classic smart card segment from form factor constraints, creating new opportunities
• By placing convenience at the top of the concerns, c’less also supports convergence and the long overdue multi-application dream of the Smart Card industry
• NFC phones will illustrate and amplify these trends
Contacts
EUROSMART General Secretariat
Rue du Luxembourg 19-21
B-1000 Brussels
www.eurosmart.com
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