Mobile NFC Services

Abstract

“There seems to be a stronger case for the use of NFC for mobile payments in the emerging markets, whereas the focus initially in the developed world will be more on using NFC for mobile ticketing and transport applications.” Shailendra Pandey, Senior Analyst, Informa Telecoms & Media

Summary:

After almost flat-lining over a year ago, the mobile NFC sector has been re-energized by a flurry of announcements. Mobile operators in several countries have ganged up in NFC alliances and joint ventures; handset vendors have announced bold NFC handset rollout plans.

Overview:

There has been a revival in enthusiasm for mobile NFC with a number of operators announcing plans to launch services in 2011. These mobile operators are eager to seize the initiative before OTT players, such as Google and Apple, jump ahead and capture the market for themselves. However, it is important to remember that the numerous barriers that have held back the mobile NFC market until now largely still remain in place. Therefore, the success of those operators keen on becoming mobile NFC market leaders will depend on how well they are able to tackle and remove the market barriers by partnering with other value chain players.

This report analyses the prospects for the growth of mobile NFC services, examining the economic, technological and strategic drivers, and constraints to overall market development. It evaluates the various user case and business opportunities presented by mobile NFC services for mobile operators, OEMs, PSPs, and technology and platform vendors, both in the developed and emerging markets.

• An in-depth assessment and analysis of the current mobile NFC Market, focusing specifically on the use of NFC in mobile phones.
• Key economic, technological and strategic drivers and barriers to mobile NFC market growth.
• The likely impact of recent NFC announcements by the operators and the strategies of handset vendors, including Google, Apple, Nokia and RIM.
• Detailed profiling of the mobile NFC ecosystem, value-chain players and the opportunities and challenges for these stakeholders. Plus, the relationships these players have now and how these relationships might change over the coming years.
• Market segmentation of the mobile NFC market including service and applications type: payments, transport and ticketing, couponing, access controls, managing identity and tagging, sharing and pairing with other devices, etc.
• Analysis of the various possible mobile NFC business models for operators, OEMs, PSPs, and technology and infrastructure vendors.
• Global and regional forecasts to 2015 for mobile NFC users, usage, transaction value and for NFC handset shipments.

• NFC Handset Shipments by Region, 2010-15
• NFC Handset Installed Base by Region, 2010-15
• Mobile NFC Users by Region, 2010-15
• Mobile NFC Transactions by Region, 2010-15
• Mobile NFC Transactions by Type, 2010-15
• Mobile NFC Transaction Value by Region, 2010-15

Key issues addressed in this edition

• Expected trends that will have an impact on NFC market growth over the next five years.
• What are the opportunities and challenges for the various mobile NFC value-chain players, including the operators, handset vendors, PSPs, technology and platform vendors?
• What are the security compliance and risk management issues that need to be addressed?
• How can potential disagreements between the stakeholders over the technical implementation of SE (secure element) be resolved?
• What are the various possible mobile NFC business models, pricing strategies, and what revenues can be expected for the different value-chain players?

Table of Contents

• Mobile NFC Services Executive Summary - PowerPoint file (43 Slides)
• Mobile NFC ecosystem and value chain
  • Fig. 1: Mobile NFC value chain
  • Fig. 2: Credit card value chain
  • Fig. 3: Options for location of secure element in mobile NFC handsets
  • Fig. 4: Mobile operators supporting the Pay-Buy-Mobile initiative, Aug-11
• Current trends and immediate opportunities
  • Fig. 1: Global, no. of mobile NFC announcements, Jul-10 to May-11
  • Fig. 2: Barriers to the takeoff of mobile NFC services
  • Fig. 3: Consumer NFC handsets announced/available in Western markets
  • Fig. 4: Competing approaches to enabling secure NFC applications on phones
  • Fig. 5: Overview of immediate opportunities in mobile NFC services
• Market-player strategies
  • Fig. 1: Pros and cons of SIM-based secure element
  • Fig. 2: Recently announced unilateral NFC operator initiatives
  • Fig. 3: Recently announced NFC operator alliances
  • Fig. 4: Comparison of Isis and Google Wallet NFC-payment services
• Analyzing the business case for contactless payments
  • Fig. 1: Main drivers for market players' involvement in mobile NFC payments
  • Fig. 2: Germany, share of payment instruments by turnover and number of transactions, 2009
  • Fig. 3: EU, annual per-capita transactions by payment instrument, 2008
  • Fig. 4: Results of poll into UK consumers' attitudes to mobile NFC payments, YouGov, Jun-11
  • Fig. 5: Results of poll into UK consumers' attitudes to mobile NFC payments, YouGov, Jun-11
  • Fig. 6: Japan, take up of FeliCa payment services, 2010
  • Fig. 7: Sitges mobile contactless payment trial results, May-Oct 2010
  • Fig. 8: Breakdown of interconnect fees taken from US$100 transaction in the US
  • Fig. 9: Sitges mobile contactless payments trial, distribution of purchases by merchant type
  • Fig. 10: Stand-alone vs. integrated NFC point-of-sale terminal
  • Fig. 11: Mobile-contactless-payments business model for banks
  • Fig. 12: Mobile-contactless-payments business model for operators
• Contactless-payment deployment strategies
  • Fig. 1: Quick Tap facts
  • Fig. 2: Ericsson IPX trusted-service-manager model
  • Fig. 3: Split TSM architecture
  • Fig. 4: iPhone NFC plug in, iCarte
  • Fig. 5: NFC sticker used in UniCredit Bank mobile-contactless-payments deployment, Slovakia
  • Fig. 6: Square iPhone payments device and application
• The technology and its many potential uses
  • Fig. 1: Mobile NFC operating modes
  • Fig. 2: Uses, drivers and barriers for mobile NFC reader/writer-mode services
  • Fig. 3: NFC tags vs. QR codes, pros and cons
  • Fig. 4: How Groupon works
  • Fig. 5: Uses, drivers and barriers for mobile NFC monitoring services (reader/writer mode)
  • Fig. 6: Contactless workplace access
  • Fig. 7: Uses, drivers and barriers for mobile NFC P2P-mode services
  • Fig. 8: Business card incorporating NFC chip
  • Fig. 9: Uses, drivers and barriers for mobile NFC card-emulation services
• Mobile NFC market forecasts, 2010-2015
  • Fig. 1: Global, NFC handset shipments, 2010-2015
  • Fig. 2: Global, NFC penetration in handsets, 2010-2015
  • Fig. 3: Global, NFC handset shipments, by OS, 2010-2015
  • Fig. 4: Global, NFC handset shipments, by region, 2010-2015
  • Fig. 5: Global, mobile NFC service users, by region, 2010-2015
  • Fig. 6: Global, mobile NFC transactions, by region, 2010-2015
  • Fig. 7: Global, mobile NFC total transaction value, by region, 2010-2015
• Mobile NFC Forecasts, 2010 2015 - Excel file