Koichi Tagawa, Chairman, NFC Forum

Tap Into NFC Seminar, Tokyo

9 February 2016

NFC Industry Update

LATEST MARKET DEVELOPMENTS

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NFC MARKET GROWTH (CAGR)

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43.7%50.6%

2014 - 2019Source: Technavio

2013 - 2019Source: Transparency Market

Research

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NFC MARKET OPPORTUNITY

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.

By 2020, over 2b NFC devices will ship

globally

MOBILE NFC PAYMENT IS EXPANDING GLOBALLY

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• Supports open development

• Carriers on board

• HCE-based payment projects

all over the world

• Accelerating Contactless infrastructure investment

Full scale deployment of Mobile Payment in US

Apple Pay

• 1M users within 72 hours

• 2500 banks, 1M locations

• Expanded to UK in June

Android PaySamsung Pay

• Launched in S. Korea, US

• $30M/mo. In S. Korea

• NFC + MST

BEYOND PAYMENT

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Consumer Electronics Gift Card

Pairing SupportVending Machine

NEW IMPLEMENTATION

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Gaming Automotive

Wearable Logistics

PARADIGM SHIFT: WHAT NFC BRINGS

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FROM COMPANY DRIVEN TO INDUSTRY DRIVEN

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1 model, Global MarketMarket Structure Shift

Regional base to Global base

NFC Popularity in B2C productIndustry Structure Shift

Vertical to Horizontal Integration

Standard Feature on Mobile OSApp Development Process Shift

MNO centric to Mobile OS centric

Product Enhancement

Card/RW to Mobile/Embedded device

Next StageSecurity: Chip base to total optimization

New feature: Wireless Charging

Economies of Scale

Industry Driven

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2 BILLION CLASS PLATFORM

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● Impact on B2C market

Billions of deployed NFC devices now available to support your service offering

New use cases can be introduced on Day 1 over the platform

● Impact on B2B market

Enables easy development of contactless applications without dedicated equipment

Commoditization of acceptance terminal

Market figure of FY2014: POS terminal 30M unit vs. NFC device 500M unit

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THE ABILITY TO CONNECT THE UNCONNECTED

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● It‘s The Internet of Things, not The Internet of

Electronic Things

● Need a way to embed intelligence in

unpowered, unconnected objects and things

● Need a way to gather data from unpowered,

unconnected objects and things

Small Form Factor

• Advantage of 13.56MHz, small antenna

• Possible adoption with limited space

Single Antenna

• Enable charging over NFC without any other

antenna implementation

Foreign Object Detection

• Fracture prevention of NFC Tag

• Auto suspension in case of object detection

Transmission Power Configuration

• Power optimization depends on target device

INTEGRATION OF COMMUNICATION AND CHARGING

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Field PowerControl

Receiver

TransmitterTransmitter

6W1W

＋ α ？

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BENEFITS OF NFC CARD EMULATION

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• Carry all your cards, all the time

• Works on existing contactless card infrastructures

• Get your card issued via network

• Your card can be online enriched

• Your card can be bio-metrics authenticated

• Other device features, GPS, camera, etc., can further

enrich user experiences

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ROLE OF THE NFC FORUM

NFC Forum

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NFC FORUM MISSION

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The NFC Forum brings the

convenience of NFC technology to

life. We empower organizations to

deliver secure, tap-based interactions

with an intuitive, reliable experience

to users around the globe.

SPONSOR MEMBERS

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PRINCIPAL MEMBERS

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ASSOCIATE MEMBERS

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IMPLEMENTER MEMBERS

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NON-PROFIT MEMBERS

THE NFC FORUM REPRESENTS

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All of the world’s major:

● chip vendors

● payment service providers

● smart phone manufacturers

● mobile operating system providers

NFC FORUM SPECIAL INTEREST GROUPS

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Special Interest

Groups (SIG)

Technical

Committee

Japan

Task Force

Six Working Groups lead

technical discussions, and

create and maintain all

aspects of the NFC Forum

technical specifications.

Activities are open to all

members except Implementer

members, with voting rights

for Sponsor and Principal

Members.

SIG Working Group and Task

Force activities build value

across key market sectors.

Efforts are open to all

members.

Three Working Groups

manage the framework for the

NFC Forum Certification

Program and Plugfest Events.

Activities are open to all

members except Implementer

members, with voting rights

for Sponsor and Principal

Members.

This group was established to

promote NFC to this regional

market and overcome the

challenges of migration from

its legacy infrastructure. Key

players in the region have

been sharing NFC use cases

and best practices, as well as

identifying opportunities to

expand activities with the SIG

Working Groups.

Compliance

Committee

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LIAISON PARTNERS

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THANK YOU!

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