Near Field Communication (NFC) has changed the technological environment for the mobile communication and mobile payments. The technology has proven its potential to lead as the m-payments market in the future. A consistent amount of efforts have been made on the development on the NFC to increase the number of its applications, and also their scope. The technology has now started to move into commercial phase.  

This unique report analyses the NFC technology at three stages: the development and standardisation process that the NFC has undergone since its inception in the market; the current NFC market status - where the technology stands now including its applications and markets? - and its future growth trends - where the industry sees NFC in the next five years. 

The report explores a whole of range of opportunities available to the stakeholders in the NFC ecosystem. NFC has been tested and has potential for the mass-adoption in almost all segments of m-payments such as m-ticketing, m-banking, m-commerce and m-trade. While the m-payments are projected to reach the critical mass, NFC for its compatibility with the existing infrastructure is well placed to leverage the already available m-payment technologies for its robust future growth.  

NFC and contactless payment ecosystem

NFC is the latest but most promising of the short range contactless payment technologies. The technology particularly has huge potential for fast adaptability as an m-payment solution by the industry and consumes alike. The advantage that the NFC has over other technologies is that it "build (s) on existing communications infrastructure and user behaviour." Thus NFC has a central role on a mobile phone, it can work side-by-side with the existing contactless technologies, either as a standalone technology or in a collaborative environment, while leveraging the existing infrastructure. The technology has capability to communicate directly with different devices or indirectly i.e. in Bluetooth pairing.  

The technology relates to
• contactless cards
• SIM-based solutions
• Bluetooth-led communication
• Felica
• IrDA standards
• NFC mobile phones
• RFID
• Contactless readers, writers, tags and coupons
• mobile based payment solutions
• mWallet
• Single Wireless Protocol etc

Table of Contents

E. Executive summary
E1.       NFC - future of m-payments? - an analysis and forecast of NFC applications and markets, 2009-2014
E2.       Applications of NFC and its potential markets
E3.       NFC commercial launch: an opportunity in waiting
E4.       The scope of this report - an overview of each chapter
E5.       NFC future growth trends  

1. M-payment technologies
1.1.      M-payments
1.2.      Phone call types of m-payment
1.3.      SMS payment technology
1.4.      Mobile browsing payment technologies
            1.4.1.   WAP (wireless application protocol)
            1.4.2.   Java MIDP (mobile information device profile)
1.5.      Mobile payment services technologies
            1.5.1.   Bluetooth
            1.5.2.   IrDA (infrared data association)
            1.5.3.   FeliCa (felicity card)
   !  &n bsp;       1.5.4.   Barcode scanning
            1.5.5.   MobileWallet - the card in phone technologies
1.6.      SIM related m-payment technologies
            1.6.1.   RFID (radio frequency identification)
            1.6.2.   NFC (near field communication)

2. NFC- an introduction
2.1.      What is NFC?
2.2.      How the technology works?
2.3.      The technological aspect of NFC: what does it evolve around?
2.4.      NFC vs Bluetooth
2.5.      NFC vs Biometrics
2.6.      The NFC services: an overview
2.7.      NFC in m-payments
2.8.      NFC ecosystem
            2.8.1.   NFC ecosystem: entrepreneurs and developers
            2.8.2.   Merchants and services providers
            2.8.3.   Mobile telephone operators
            2.8.4.   The consumers

3. NFC on mobile phone
3.1.      NFC mobile services
            3.1.1.   Positioning and functionality of NFC on mobile devices
3.2.      NFC services on mobile phone
            3.2.1.   Interactivity
            3.2.2.   Report multi-application management
            3.2.3.   Remote user management
3.3.      Areas of NFC mobile phone applications
            3.3.1.   NFC services: transport and travelling
                        3.3.1.1.  ! ;  Access, ticketing, activiation and legitimacy
                        3.3.1.2.    Boarding and alighting
                        3.3.1.3.    Tickets purchase and top-ups
                        3.3.1.4.    Access toinformation and location-based services
            3.3.2.   NFC in retail sector
                        3.3.2.1.    Payment for access to products and services
                        3.3.2.2.    Security, validation and identification
                  &nb! sp;  ;    3.3.2.3.    Offers, packages and discounts
            3.3.3.   NFC mobile couponing
3.4.      NFC mobile ecosystem - a new market place?
            3.4.1.   Modeling NFC mobile ecosystem
                        3.4.1.1.    NFC mobile ecosystem: service provisioning
                        3.4.1.2.    Mobile network provision
                        3.4.1.3.    Trusted service manager
3.5.      Key players in NFC mobile ecosystem
            3.5.1.   Customers/end-users
     &n! bsp;&nbs p;     3.5.2.   Chipset manufacturers
            3.5.3.   Mobile handset manufacturers
            3.5.4.   Component and tag manufacturers
3.6. Building successful NFC mobile ecosystem
            3.6.1.   Building NFC mobile system: MNOs
            3.6.2.   Service providers
3.7.      NFC mobile framework
            3.7.1.   Functionalities of NFC mobile phones
                        3.7.1.1.    Application execution environment
                        3.7.1.2.    Trusted execution environment
&n! bsp;                       3.7.1.3.    NFC stacks and controller
            3.7.2.   NFC mobile phone back-end server system
            3.7.3.   NFC Target
3.8.      NFC-equipped mobile phones and devices
            3.8.1.   GSMA for more NFC mobile phones  

4. NFC applications and markets
4.1.      NFC applications
4.2.      Potential key areas of initial applications of NFC
            4.2.1.   P2P (pee-to-peer)
                        4.2.1.1.    Active mode of communication
                        4.2.1.3.    P2P applications - the Hagenberg study
            4.2.2.   NFC as service initiator
            4.2.3.   NFC application in m-payments
4.3.      NFC smar poster
4.4.      SMS application
4.5.      NFC in Bluetooth pairing
4.6.      NFC markets
            4.6.1.   NFC-led m-payments
            4.6.2.   M-marketing,advertising and location-based services
            4.6.3.   Connectivity
            4.6.4.   NFC in maximising other platforms and devices
4.7.      NFC in healthcare and medical services
            4.7.1.   Potential NFC applications in healthcare
            4.7.2.   NFC in biomedicine and telemedicine
                        4.7.2.1.    The field of wearable sensors
    &! nbsp;&nb sp;                  4.7.2.2.    The field of implanted medical sensors
                        4.7.2.3.    The field of implanted stimulators
                        4.7.2.4.    The field of implanted actuators
            4.7.3.   NFC in healthcare and safety concerns
                        4.7.3.1.    What about interference robustness?
4.8.      NFC in education  

5. NFC - a case for m-payments
5.1.      NFC-led m-payments
5.2.      Potential m-payment applications and markets for NFC
5.3.      GSMA NFC 'pay-buy-mobile' project
            5.3.1.   Pay-buy-mobile initiative: GSMA's global projects
            5.3.2.   GSMA's collaboration with EU payments council
            5.3.3.   GSMA backs NFC standards adoption
            5.3.4.   GSMA for more NFC-enabled handsets
5.4.      NFC m-payment applications and consumer markets
            5.4.1.   Digital media content access
    !  &n bsp;      5.4.2.   M-ticketing: transport, sports and social events
            5.4.3.   Retail sector
            5.4.4.   Information services
5.5.      M-banking
            5.5.1.   NFC-led m-banking - a case study from Citibank
            5.5.2.   NFC-led m-banking: the Barclays leads in UK
                        5.5.2.1.    Barclays contactless card
                        5.5.2.2.    Barclays 'wave and pay' for London cabs
                        5.5.2.3.    Barclays' stake in NFC London trial
            5.5.3.   The Australian NFC-led m-banking trials
5.6.      NFC in mWallet - the card in phone technology
            5.6.1.   VISA's m-payment initiative
            5.6.1.   VISA's m-payment solutions for Nokia and Google
5.7.      NFC and MasterCard's m-payment programme
            5.7.1.   MasterCard PayPass: how it works
5.8.      NFC in m-remittance and funds disbursement 

6. NFC: development, standardisation and security
6.1.      NFC since approval as an ISO/IEC standard
6.2.      NFC protocols
            6.2.1.   Passive communication mode
            6.2.2.   Active communication mode
            6.2.3.   ISO 14443 Type A Mifare
            6.2.4.   ISO 14443 Type B
            6.2.5.   Felica
            6.2.6.   ISO 15693
            6.2.7.   Contactle! ss Reade r/validator
            6.2.8.   Contactless cards
            6.2.9.   Contactless mobile phones
6.3.      NFC specifications
            6.3.1.   Data Exchange Format Technical Specification
            6.3.1.   Record Type Definition Technical Specifications
            6.3.2.   NFC Text RTD Technical Specification
            6.3.3.   NFC URI RTD Technical Specification
            6.3.4.   NFC Smart Poster RTD Technical Specification
            6.3.5.   NFC Generic Control RTD Technical Specification
6.4.      R! eference application technical specifications
            6.4.1.   NFC Forum Connection Handover Technical Specification
            6.4.2.   NFC Forum tag type technical specifications
            6.4.3.   NFC Forum type 1 tag operation specification
            6.4.4.   NFC Forum type 2 tag operation specification
            6.4.5.   NFC Forum type 3 tag operation specification
            6.4.6.   NFC Forum type 4 tag operation specification
6.5. NFC development and standardisation bodies
            6.5.1.   NFC development - Nokia takes the lead
            6.5.2.   NFC Forum
            6.5.3.   The GSM Association
            6.5.4.   GSMA's NFC mobile initiative
            6.5.5.   StoLPaN - the European NFC programme
            6.5.6.   The European Telecommunications Standards Institute
            6.5.6.   The GlobalPlatform
            6.5.7.   EMV protocol in NFC
            6.5.8.   SmartCard Alliance adopts NFC
6.6       NFC security: threats and recommended solutions
            6.6.1.   Eavesdropping
            6.6.2.   Data cor! ruption
            6.6.3.   Data modification
            6.6.4.   Data insertion
            6.6.5.   Man-in-the-middle-attack
            6.6.6.   Secure channel for NFC
            6.6.7.   NFC specific key agreement

7. NFC trials and consumer surveys
7.1       Trials by GSMA under 'pay-buy-mobile' initiative
            7.1.1.   GSMA initiative: trials in pipeline
7.2.      NFC trials in UK
            7.2.1.   O2 NFC trial
            7.2.3.   NFC-enabled SIMs for UK soccer club
            7.2.4.   O2 NFC wristband at music festival
            7.2.5.   M-tickets on London buses
          &nb! sp; 7.2.6.   Consumer survey by Aberdeen Group
            7.2.7.   Ingenico trial in UK , Ireland
            7.2.8.   O2 test beds for NFC
            7.2.9.   NFC at London Olympics
            7.2.10.             MasterCard PayPass in UK
            7.2.11.             RFID-led luggage tracking
            7.2.12.             Barclays' 'wave-and-pay' for London taxis
  &! nbsp;&nb sp;        7.2.13.             VISA 'tap and go'
            7.2.14.             Bath University NFC pilot
7.3.      Trials in US
            7.3.1.   Sprint's BART NFC
            7.3.2.   US NFC consumer survey
            7.3.3.   Philips Arena trial in Atlanta
            7.3.4.   'WirelessWallet' consumer trial
            7.3.5.   VISA's coupon pilot in California
7.4.      VISA's NFC pilots
            7.4.1.   VISA's NFC pilot in Europe
            7.4.2.   Visa trials in Brazil , Canada and Malaysia
            7.4.3.   Visa credit card demo
            7.4.4.   Nokia and VISA team up in Malaysia
7.5.      M-ticketing trial in Austria
7.6.      NFC services in Taiwan
7.7.      Singapore 's NFC public trial
7.8.      NFC payments in Amsterdam
7.9.      French retailers NFC trials in 2009
7.10.    Monaco launches NFC trials
7.11.    NFC trial in Melbourne
7.12.    ING and MasterCard trial in Romania
7.13.    Italian ski NFC trial
7.14.    NFC smart poster
7.15.    NFC on buses in Germany  

8. Latest developments on NFC
8.1.      January 2009
            8.1.1.   Barclays NFC debit cards
            8.1.2.   Gemalto reader
8.2.      December 2008
            8.2.1.   Sagem-Orange SWP SIM card
            8.2.2.   French NFC payments group
            8.2.3.   NFC-compliant tags
8.3.      November 2008
            8.3.1.   Australian m-payment trial
     &n! bsp;&nbs p;     8.3.2.   SIMalliance NFC working group
            8.3.3.   'Over-the-counter' payment service
            8.3.4.   SCM's contactless, NFC reader
            8.4.5.   GSMA for more NFC handsets
            8.4.6.   NFC hotel room access
            8.4.7.   ViVOtech NFC pilot
            8.4.8.   Bell ID mobile payments
8.5.      October 2008
            8.5.1.   NFC interoperability
            8.5.2.   Mas! terCard OTA service
            8.5.3.   FeliCa in North America
            8.5.4.   NFC to mass market
            8.5.5.   Turkey NFC trial
            8.5.6.   NFC payments at theatres
            8.5.7.   NFC showcased
            8.5.8.   Oyster could be replaced
            8.5.9.   CPI, INSIDE payment stickers
            8.5.10.             Consumer NFC adoption
            8.5.11.   &nbs! p;          BART NFC trial
8.6.      September 2008
            8.6.1.   AIRTAG NFC solution
            8.6.2.   Visa m-payments services on Google, Nokia
            8.6.3.   Smart Card Alliance's includes m-payments
            8.6.4.   NFC pilot in Switzerland
            8.6.5.   Telecom Italia and Mastercard team up
            8.6.6.   Alcatel-Lucent's Tikitag
            8.6.7.   Visa's four new mobile payment programmes
            8.6.8.   London NF! C trial
8.7.      August 2008
            8.7.1.   Telstra's NFC testing
            8.7.2.   NFC-enabled SIM card interoperability
            8.7.3.   Global FeliCa adoption
            8.7.4.   NFC trial in Singapore
8.8.      July 2008
            8.8.1.   Innovision, Sasken partner for NFC
            8.8.2.   Collaboration model on NFC deployments
            8.8.3.   New specifications for NFC devices
            8.8.4.   Co-operation o! n global payment system
8.9.      June 2008
            8.9.1.   NFC in healthcare
            8.9.2.   StarHub mWallet pilot
            8.9.3.   M-ticketing in Germany
            8.9.4.   Blaze NFC
            8.9.5.   Gemalto updates 53 million phones
            8.9.6.   NFC pilot in UAE
            8.9.7.   Innovision NFC tags
            8.9.8.   Sony deal for FeliCa
8.10     May 2008
            8.10.1.             MasterCard Canada NFC experiment
            8.10.2.             NFC in Italy
            8.10.3.             McDonald's e-coupons in Japan
            8.10.4.             Collis new NFC chip
            8.10.5.             GPS/GSM-based toll system
            8.10.6.             Mifare for NFC apps
8.11     April 2008
            8.11.1.  & nbsp;          DnB Nor-Telenor m-payments unit
            8.11.2.             ViVOpay contactless payments
            8.11.3.             M-payments in Western Europe
            8.11.4.             Speakers with NFC
            8.11.5.             Nokia 6212 Classic
            8.11.6.             Maxis NFC technology
            8.11.7.             SCM Microsystems 'NFC dongle'
            8.11.8.        &! nbsp;&nb sp;   NFC in pension distribution
            8.11.9.             Indonesia looking at NFC
8.12.    March 2008
            8.12.1.             Citigroup NFC phone
            8.12.2.             New SoC solution
            8.12.3.             Microsoft, Sirit partner on NFC
            8.12.4.             Citi-SK Telecom m-commerce venture
            8.12.5.             LEGIC card-in-card solutions
8.13.    February 2008
            8.13.1.             NFC system on chip solution
            8.13.2.             NFC Wi-Fi networks protection
            8.13.3.             NFC at London Fashion Week
            8.13.4.             BlueSky's AGPS-SIM card
            8.13.5.             Multi-standard NFC chip
            8.13.6.             SIM-based m-payment
            8.13.7.             Real time employee tracking
8.14.    January 2008!
            8.14.1.             NFC trial in Washington
            8.14.2.             BBC named NFC top tech for 2008
            8.14.3.             Sony unveils TransferJet 

9. Views, quotes and useful leads
9.1.      Mohammad Khan, President, ViVOtech Inc
9.2.      Rob Conway, CEO GSMA
9.3.      Peter Ayliffe, CEO of Visa Europe
9.4.      Shuan Ghaidan, Head of Product Sales and Delivery, Asia/Pacific MasterCard
9.5.      Mark Collins, VP of Consumer Data Services at AT&T Mobility
9.6.      Mung-Ki Woo of Orange , VP Payment and Contactless
9.7.      Sol Trujillo, CEO of Telstra
9.8.      Important leads

10. Conclusion and forecasts
10.1     NFC progresses steadily since launch
10.2.    Evidence of NFC's industrial adoptability
            10.2.1.             Development and standardisation
            10.2.2.             Industrial projects and consumer surveys
            10.2.3.             Growth in strength and scope of NFC Forum
            10.2.4.             NFC development efforts at GSMA platform
            10.2.5.             Efforts by other institutions
10.3. & nbsp;  Factors for NFC popularity among stakeholders
            10.3.1.             The success in consumers' trials and surveys
            10.3.2.             The element of convenience
            10.3.3.             Time-and-cost effectiveness
            10.3.4.             Support to existing infrastructure
            10.3.5.             Ability to interact with other technologies
            10.3.6.             Potential for growth in m-payments
10.4.    Where NFC is positioned now
           ! 10.4.1.             NFC from trials phase to production phase
            10.4.2.             NFC potential to reaching the critical mass
10.5.    NFC adoption: opportunities, benefits and drawbacks
            10.5.1.             NFC adoption: opportunities for stakeholders
                        10.5.1.1.    Payment-led opportunities
                        10.5.1.2.    Opportunities in healthcare
                        10.5.1.3.    Business-to-business opportunities
                        10.5.1.4.    Opportunities in other areas
            10.5.2.             NFC adoption: benefits and drawbacks
                        10.5.2.1.    Benefits
                                    10.5.2.1.1.    Consumer benefits
                                    10.5.2.1.2.    Benefits to stakeholders
                        10.5.2.2. Drawbacks or risks
10.6.    NFC commercial launch: an opportunity in waiting
            10.6.1.             NFC commercial launch:! issues facing the technology and lessons to be learnt by industry
                        10.6.1.1.    Infrastructure
                        10.6.1.2.    NFC-enabled mobile phones
                        10.6.1.3.     Technical standards
                        10.6.1.4.    Co-ordination among vendors
                        10.6.1.5.    Security and safety
                        10.6.1.6.    Marketing of NFC-led solutions
10.7.    Forecasts
            10.7.1.             NFC market 2009-2014
            10.7.2.             Demography of NFC growth
                        10.7.2.1.    M-ticketing - the future of contactless payments
            10.7.3.             Growth from other areas
            10.7.4.             NFC forecast: growth trends in regional markets
                        10.7.4.1.    Japan leads the contactless payment market
              !  &n bsp;        10.7.4.2.    Trends prevalent in Asian emerging markets
                        10.7.4.3.    Europe sits on huge m-payment growth potential
                        10.7.4.4.    Growth from US and Latin America
            10.7.5.             NFC mobile phones  

List of Tables
Table 1.1.         Payment systems - history in brief
Table 1.2.         Mobile browser
Table 1.3.         M-payment technologies comparison
Table 1.4.         IrDA's major stakeholders
Table 2.1.         How does NFC compare to other wireless technologies
Table 5.1.         Mobile payment defined
Table 5.2.         Mobile banking
Table 5.3.         Mobile Payment Forum members
Table 6.1.         NFC Forum's key members since launch
Table.6.2.         NFC Forum's key members
Table 6.3.         Dimensions of security in mobile payments  

List of figures
Figure 1.1.       M-Payment market forecast 2008-2013
Figure 1.2.       Annual m-payments growth rate 2008-2013
Figure 1.3.       Mobile barcode scanner
Figure 1.4.       An RFID tag
Figure 2.1.       NFC
Figure 2.2.       Mobile Bluetooth
Figure 2.3.       Biometrics
Figure 2.4.       NFC ecosystem
Figure 2.5.       Retailers survey on NFC-led m-payment technologies awareness
Figure 3.1.       NFC positioning in mobile phone
Figure 3.2.       NFC services
Figure 3.3.       NFC in transport and travelling
Figure 3.4.       NFC in information access
Figure 3.5.       NFC-enabled handsets and devices available
Figure 4.1.       NFC smart poster
Figu! re 4.2.       Small Chart Box
Figure 4.3.       Mobile payment adoption survey
Figure 5.1.       Mobile payment adoption survey
Figure 5.2.       Mobile payment adoption survey
Figure 5.3.       Mobile wallet network map
Figure 10.1.     Global telecoms subscriber growth-1982-2013
Figure 10.2.     NFC share of the global m-payments market 2009-2014
Figure 10.3.     Banking sector plans for mobile services
Figure 10.4.     M-payments and NFC global annual gross transaction value 2009-2014
Figure 10.5.     NFC share of global mobile device shipments 2009-2014