A webinar “Evaluating NFC security strategies: The role of the secure element in the evolving landscape” was hosted by NFC World on January 20, 2015.
A few highlights of the webinar is as follows:
The NFC adoption rate is increasing rapidly based on the stats of NFC SIM shipped; 16M shipped in 2011, 30M in 2012, and 72M in 2013.
Geographic stats show the demand in different regions. In 2013, 37M was shipped to Japan/Korea, 24M to North America and 14M to Europe.
The pros and cons analysis of HCE and SE technology.
A SIMalliance recommended deployment model based on security and market reach, application and technology requirements.
A case study on Canada’s success as the #1 mobile payment country in the world. Some stats are as follows: All of Canada’s major MNOs now offer SE based NFC payment capability to their customer; 2/3 of the phones are Android and BlackBerry; 5 of Canada’s “Big Six” Financial Institutions do the same; over 84% major retail merchants have contactless EMV terminals
SIMalliance anticipates a future where SE and HCE will continue to co-exist and in many cases converge. This will be the basis of an optimally efficient and secure NFC ecosystem.
I am getting a bit tired with my ISIS enabled iPhone. The case added weight to my iPhone. Most of the ISIS transactions didn’t work well. The only good thing is that I am getting free drinks from Jamba Juice until the end of March. Other than card emulation mode, none of the other NFC modes work. I can’t tap an NFC tag or an NFC enabled phone with the case to get the full benefits of NFC. I think I might switch to an Android phone. Most of the Android smartphones are NFC enabled.
Looking back at the history of NFC’s development, I find the situation kind of ironic. We had an NFC enthusiast, Google, demonstrate NFC card emulation mode’s value by implementing mobile wallet. Telecoms disabled the capability from the phones because they were developing their own mobile wallet solutions and wanted to control SIM-based NFC. So Google dropped SIM-based NFC, the most direct and secured way to protect security and privacy with Secure Element, and implemented HCE (Host Card Emulation) based mobile wallet. Even though it’s not as secure as a SIM-based solution, the HCE solution is beyond the control of telecoms.
Control provokes innovation by requiring creative solutions to market dominant. History repeats!
On the other end, Apple has been filing patents for NFC communication technology but still hasn’t added NFC capability into their devices. Their blue ocean strategy is to find a market space with no competitors. At the same time, their actions have slowed down the adoption of NFC technology and pushed BLE forward. Apple is also exercising a control with its vast user market. Again, innovation will emerge to escape the control. History will repeat.
NFC Solutions Summit 2014 will be held in Austin, TX on June 2-4. I trust that the NFC ecosystem will demonstrate strength and creativity on mobile wallet solutions through collaboration and innovation. Extreme early discount to purchase a ticket is available until April 2nd. Reserve your seat now!