Mr. Anthony Tang NFC Project Manager, GSMA Speech topic: NFC Global Opportunity, Progress and Challenge

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© GSM Association 2012
All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
NFC Global Opportunity, Progress
and Challenge
Anthony Tang
GSMA NFC Project Manager - APAC
Atang@gsma.com

2. The GSMA
 A Global non-Profit Association in more than 200 countries
 Members consists of more than 800 Mobile Operators and 200 Industry
Companies and 6 billion mobile connection。
 GSMA is like the Union of the Telecommunication

3. © GSMA 2012
Our Works
Spectrum Mobile NFC Connected Living
Rich Communications SIM Based Identification Global Roaming

4. © GSM Association 2012
Rising of NFC Commercial Launch
2004-5 2006-8 2009-11
Technology Trigger
Gartner Hype Cycle
2012-13
Peak of Inflated
Expectations
Trough of Disillusionment Slope of Enlightenment

5. © GSM Association 2012
NFC Global Opportunities

6. © GSM Association 2012
NFC Total Transition Amount (in Million)
2014 -2018

7. © GSM Association 2012
NFC Commercial Launch in Key Countries
USA
Singapore
Korea  More than 20M NFC users (by end of
2012)
 Support transport, payment and
voucher service
 Around 15% active users
 Started from Salt City and Austin
from Oct 2012.
 SmartTap technology to support
payment, Loyalty and coupon in one
tap
 Started commercial service from Aug
2012
 An open TSM infrastructure
 Around 15K users

8. © GSM Association 2012
Hong Kong
Thailand
China
• CU – Launched NFC in Dec 2013
• CMCC – Launched NFC in April 2013
 By year end 2103 more than 10
million NFC users
 Support Public transportation,
Payment and coupon, etc.
 NFC Commercial Launch by June 2013
 PCCW/MASTER CARD/HANG SENG BANK。
 HUTCHISON/VISA/Citi Bank
 Commercial Launched April 2013
 More that 50K users in Bangkok in
2013
 Support Public transportation,
Payment and coupon, etc.
NFC Commercial Launch in Key Countries

9. © GSM Association 2012
Growth rate of NFC Handset
2011 2012 2013
40
99.28
291.09
>15% of smartphone
NFC handset Sales Volume 11- 13 （million)
Source：Strategy analytics, ABI Research
 Sales volume Forecast by
year 2015 will be more
than 680 million*。
 Market Store more than
400 million by year end
2103**。
 More than 180 NFC
handset model。
Source：
• * iSupply, Frost & Sullivan, IMS, Berg
Insight forecast report year 2015
average sales volume average。
• ** From Strategy Analytics, ABI Research
report

10. © GSM Association 2012
SIM Based NFC
 Global Standard
 An Open Environment and Portable
among handset providers and
Mobile Operators
 High Security Level and
comparable with Credit Card
Standard
 Centralized CS Services through
MNO
NFC Technology
+
SIM Secure Element
=
Mobile NFC

11. © GSM Association 2012
Key Success Factor – User Education & Promotion
 What is NFC？
 Is NFC Payment Safe？
 How to use and apply？
 What is contactless Payment？
 How to POS do that？
User
Shops
Global Standard
Promotion is a Must
Promotion on All other
Non-payment NFC Services
EMVCo NFC Logo

12. © GSM Association 2012
NFC Transportation is the Key to sucess
T-Money of Korea user growth rate（in million）
2009 2010 2011 2012 2013e 2014e 2015e
1 1.3
2.1
3.4
4.5
5.8
7.1
CAGR=32%
• High User Demand & Daily Usage
• Contact Card Payment -> Contactless Phone Payment
• Lower Ticket cost + Rich User Interaction + VAR

13. © GSM Association 2012
NFC Mobile Payment Ecosystem
Issuing
Bank
Payment
Network
Acquiring
Bank
NFC chip
maker
Handset
OEMs
Operator
Financial Ecosystem
Mobile Ecosystem
Commercial Ecosystem
PoS Providers Merchants
User
Payment
Merchant

14. © GSM Association 2012
NFC Mobile Payment User Ecosystem
Issuing
Bank
Payment
Network
Acquiring
Bank
NFC chip
maker
Handset
OEMs
Operator
Finacial Ecosystem
Mobile Ecosystem
Commercial Ecosystem
PoS Providers Merchants
User
Merchant
Coupon
Coupon Ecosystem
Mobile Adv. Ecosystem
Coupon
Issuer
Coupon
Agency
Clearing
House
Payment
CS
Adv.
Coupon
Issuer
Coupon
Agency
Clearing
House

15. © GSM Association 2012
Finally
• NFC Mobile Payment is in the stage of Commercial
Launch
• Sim-Based NFC is the Main stream
• NFC Handset Sales Volume growth rate is huge and 20% of new
handset are NFC handset
• User Education and Promotion is the key to speed up
the pick up rate of NFC usage: Global Standard,
Promotion and Multiple Services
• NFC Transportation is the key to generalize the NFC
coverage and ensure daily usage
• Value Add Service Create huge value for merchant and
users, it growth faster through unique user interface
and simple API

16. Join us in Shanghai…
…to continue the dialogue!
Thank You!
谢谢！
ATang@gsm.org