Opportunities in Non-Payment NFC Applications

Prepared by: Keng Boon TAN, CTO Date: 4 March, 2008

Tel: Fax: E-mail: Website:

+852-2796-7873 +852-2796-1286 info@acs.com.hk www.acs.com.hk 1

Agenda
1. Introduction of NFC 2. NFC Applications
Successful factors Application Possibilities Development

3. Advanced Card Systems Ltd. (ACS) 4. Conclusion

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Introduction

NFC Tags
NFC Tags

Type 1 Tag
ISO-14443 Type A, 106 Kbits/s 96 bytes, expandable to 2 Kbytes, read & re-write-able
Topaz

Type 2 Tag
ISO-14443 Type A, 106 Kbits/s 48 bytes, expandable to 2 Kbytes, read & re-write-able
Mifare Ultralight

Type 3 Tag
JIS 6319 212, 424 Kbits/s

Type 4 Tag
ISO-14443 A or B, up to 424 Kbits/s

FeliCa

JCOP30, Mifare DESfire

4

Reference : http://www.nfc-forum.org/specs/

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GSM SIM card vs NFC-based GSM SIM card

GSM SIM card
NFC apps in secured environment (e.g. SIM)

* * 1 2 3 4 5 6 7 8 9

* * 1 2 3 4 5 6 7 8 9
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NFC Mobile Station

ISO14443 Contactless Card NFC Mobile Station
LCD display Keypad Security module (using the smart card) Secured data storage (inside the smart card) Communication channel e.g. SMS, Data channel etc Ringer / Speaker

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NFC Applications

NFC Applications
only limited by application designers creativity Can be any applications
where a contactless smart card is suitable where a contactlesss smart card reader is suitable

Creative application ideas required !

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Success Factors For Smart Card Applications

Must exploit the capabilities of a smart card
1.Portability / Convenience Lots 2.Security

Must bring real benefits to all parties

Cost reduction 2. Profit increase Authenticity (card/tag, 3. Market share increase / APPLICATION cardholder, device/terminal) customer retention Transaction Authenticity 4. Customer service POSSIBILITIES (signs transaction) improvement Non-repudiation 5. Convenience
(verify signature) Confidentiality

of 1.

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NFC Application Possibilities

1) Smart Poster
1. NFC tag embedded the poster 2. Get information
Offline: Shown on the screen Online: Through SMS examples 1. URL Link
Surf the web immediately or save the URL

2. Discount Coupons
Encourage impulsive purchase

3. Useful Information
e.g. Direction guide, bus route details
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NFC Application Possibilities

1) In-depth look: Smart Poster at Bus Stop

1. 2. 3. 4. Touch the bus route SMS sent to back-office Check the position of the bus through GPS Respond with estimated time of arrival

SMS

GPS
Bus

Passenger

Back-end System
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NFC Application Possibilities

1) In-depth look: Smart Poster at Bus Stop

Application Operator Telecom Operator
Share revenue with Bus Operator and Telecom Operator Generate long term profits Apply to other areas R & D cost Share revenue with Bus Operator and Telecom Operator Generate long term profits

Benefits to every party

Passengers
Convenience Better time management Traveling

Bus Operator
Small investment Improve service Customer satisfaction

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NFC Application Possibilities

2) Genuine or counterfeit?
NFC tag attached onto genuine products e.g. CD, Medicine, Electronics, Battery, Handphone Benefits:
Consumers: distinguish between genuine or counterfeit goods Producers: protect own products against the pirated one
ABC Server
Name: ABC Medicine Manufacturer: ABC Code: ABC-123-456

Genuine Code?

Genuine!

Genuine if code OK AND not previously used

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NFC Application Possibilities

3) NFC Tickets and Coupons

NFC tagged onto Tickets and Coupons Tickets and Coupons loaded into NFC phones e.g. season parking coupons, concert tickets, stadium tickets Benefits
Consumer & Ticket operators: 1. Shorten admission time Bring convenience 2. Difficult for cloning

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NFC Application Possibilities

4) Service Monitoring & Automation

Patient Care Monitoring
NFC Tag as home-cared patient identification Nurses clock-in and clock-out via NFC phone, received latest instructions etc Benefits
Nurse: Digital proof of the duration and type of care provided Prevent time-consuming reporting Care-provider: Remotely monitor and manage the delivery of care Patients: Receive professional care as individual instructions can be confirmed digitally
Phone reads location data from the fixed NFC tag and the phone transmits attendance info to the backoffice system www.acs.com.hk

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NFC Application Possibilities

4) Service Monitoring & Automation

Guard Tour System
Integrate with NFC Technology 1. NFC tag embedded at checkpoints 2. After checking certain area, security guards tap the NFC tag with their NFC handset Benefits:
Security Guard Supervisor : Can enquire the location of guards Security Guard : No need to carry extra guard tour device
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NFC Application Possibilities

5) Physical & Network Access

Physical Access & Network Access changed/ upgraded to NFC base Benefits
Users and Company: Carry their cell phones with them Security Level

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NFC Application Possibilities

6) Loyalty Program
Existing loyalty card limitations
Too many cards cardholder dont bother to carry with him Dont know the bonus points inside the card Effectiveness

Any Solution?

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6) Loyalty Program
NFC-enabled phone as a loyalty application platform
Store multiple loyalty cards Operate a multi-merchant loyalty

Benefits:
Customers: Enjoy privilege and convenience Retail Shops: Benefit from impulsive purchase
Loyalty Card A Loyalty Card B Loyalty Card C 19

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Development of NFC Applications

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Phases in smart card application

Creation of an application idea

Proof-of-concept / demonstration

A small trial

A limited pilot

Mass Roll-out
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Application Developer Challenges

1. No easy access to up-to-date information
Here is where APSCA can play a role

2. No sufficient vendors support

Vendors usually interested in immediate & big market e.g. GSM SIM, EMV

3. Sometimes need hardware adaptation, development & production

- many solutions houses not geared for this type of work

ACS can help !

www.acs.com.hk 22

Advanced Card Systems Ltd.

23

Advanced Card Systems (ACS) Profile

Founded in 1995 and now listed in the Hong Kong Stock Exchange (HKGEM 8210). ISO 9001 certified company ACS develops and distributes a wide range of high quality smart card reading/writing devices, smart cards, and related products to over 100 countries worldwide, facilitating an easier adoption of smart card applications in different industries.

www.acs.com.hk

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Awards
2003 2003 2005 Frost & Sullivan - the worlds fourth and Asia Pacific 1st leading industry participant in the PC linked readers market Frost & Sullivan - Growth Strategy Leadership award Ducoty Award for Product Innovation.

2006

Ducoty Award (The Ultimate Card Of The Year) - Product innovation (ACR100 SIMFlash - Smart card reader + Flash) Frost & Sullivan - "World Business Development Strategy Leadership" award Frost & Sullivan - the worlds fourth and Asia Pacific 1st leading industry participant in the PC-linked readers market

2006

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ACS high-quality & Reliable Security Products

International standards

National standards

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Products
(1) Contact smart cards and smart card operating systems (2) PC-linked smart card readers (3) Smart card balance readers (4) Smart card/finger print readers (5) Smart card readers with pin-pad (6) Contactless readers (7) Physical access control

(8) GSM management tools

(9) PC-linked readers with Mass Storage

(10) Dynamic Password Generator www.acs.com.hk 27

Diversified Product Applications

Categories
Banking Digital Security Healthcare Loyalty National ID

Partners/ Projects
USA Federal Reserve Bank Hong Kong Post (e-Cert) Macau Post (PKI Project) USA IBSL UAE Health Card Project Hong Kong CitySuper Belgian Gov FedICT Malaysia Smart ID

Non-transport application (AFC) HK e-Payment Card Project, Singapore Transportation Project Transportation VoIP Singapore Transportation Project China
www.acs.com.hk 28

ACR122 Evaluation Kit

New Experience with the ACR122, Worlds First CCIDCompliant NFC Card Reader
ACR122 NFC Contactless Smart Card Reader NFC Tags CD-Rom
Demo Program Tools and Utilities Reference Materials

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Conclusion

Creativity

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Thank You!

Tel: Fax: E-mail: Website:

+852-2796-7873 +852-2796-1286 info@acs.com.hk www.acs.com.hk 31