The Federal Reserve Bank of Boston has released a report based on the recent Mobile Payments Industry Workgroup (MPIW) meeting to discuss (1) different wallet platforms; (2) how card networks and other payment service providers manage risks associated with converging digital and mobile channels; and (3) merchant strategies around building a mobile payment and shopping experience. [Read more…]
Rabobank, one of the largest financial institutions in the Netherlands, is collaborating with Giesecke & Devrient (G&D) in the launch of a commercial mobile payment solution. The cooperation between Rabobank and G&D will enable consumers to have contactless payment products available in smartphones that support Near Field Communication (NFC) technology. The launch of the mobile payment solution is targeted in the Netherlands for 2014.
For the first time in the Netherlands, consumers can use their smartphones in this commercial mobile payment project based on NFC technology. Rabobank and Giesecke & Devrient have already started their collaboration, and in 2014 customers will be able to pay using their smartphones via NFC in all stores equipped with contactless point-of-sales terminals. [Read more…]
A new study from Juniper Research has determined that the total value of mobile payments for digital and physical goods, money transfers and NFC (Near Field Communications) transactions will reach $670bn by 2015, up from $240bn this year. These forecasts represent the gross merchandise value of all purchases or the value of money being transferred.
The new Mobile Payment Strategies report revealed that all segments will exhibit 2x to 3x growth over the next five years. This growth will be driven by the rapid adoption of mobile ticketing, NFC contactless payments, physical goods purchases and money transfers as people in both developed and developing countries use their devices for everyday transactions. [Read more…]
The Yankee Group has just released its free 17-page 2012 Annual Predictions Report, which looks into what the future has in store for the ever-growing mobility landscape.
The world is in transition and in the year ahead, mobile will be both the protagonist and the subject of this instability. During the last five years, networks and the information they carry have plugged more than 2 billion new participants into the mobile economy. The winners in this landscape will be those players that can scale quickly and treat each user as a unique customer.
- The mobile gold rush is global in scale a and touches all customers. In the last five years, 2 billion new users joined the mobile revolution. Looking ahead, mobile workers and consumers will embrace tablets, mobile content and personal cloud services. At the infrastructure level, the operator imperative to monetize all-IP networks will drive investment in policy solutions.
- Asia-Pacific takes the lead in tablet sales. Yankee Group forecasts U.S. tablet sales will total 17 million in 2011 and almost 25 million in 2012. Similarly, tablet sales in all of Europe will exceed 15 million in 2011 and reach more than 26 million in 2012. And tablet sales in the Asia-Pacific region will total 20 million this year and reach almost 39 million in 2012, more than 50 percent above the U.S.
- Diameter signaling is taking off. Yankee Group has seen significant request for proposal/request for information (RFP/RFI) activity and expects spending on IP-based Diameter signaling to more than double between 2011 and 2012—growing from U.S.$22 million to U.S.$45 million. And overall, we see the market mushrooming to U.S.$212 million in 2015, for a whopping CAGR of 57.2 percent.
- Personal cloud services are hitting the high-growth phase. We forecast 17 percent of professionals with three or more devices will adopt a personal cloud service for online storage, backup and synching.
- Economic woes threaten operators. Western European operators will see churn increase from approximately 2.3 percent per month today to 2.4 percent by the end of 2012, despite operators’ ongoing efforts to migrate customers to postpaid services and long-term contracts linked to new smartphone purchases. The world is in transition and in the year ahead, mobile will be both the protagonist and the subject of this instability. During the last five years, networks and the information they carry have plugged more than 2 billion new participants into the mobile economy. The winners in this landscape will be those players that can scale quickly and treat each user as a unique customer.
For more information and to download the report: 2012 Annual Predictions Report: Mobile
There is much buzz around the growth of mobile payments in the United States, with predictions that it will hit $214 billion by 2014, according to Aite Group. But which of the many possible approaches — including integrated NFC, non-integrated contactless, bar codes, cloud-based solutions, and text messaging — is the best choice?
The Smart Card Alliance today released a white paper entitled, “The Mobile Payments and NFC Landscape: A U.S. Perspective.”
The white paper provides an overview of the current state of the market for mobile payments and NFC-enabled payment applications in the U.S., and evaluates the advantages and disadvantages of different mobile payment approaches.
“Technology is always changing, especially within the mobile and payments industries, so it is difficult to predict when and how mobile payments will become commonplace in the United States,” said Randy Vanderhoof, executive director of the Smart Card Alliance. “The goal of this white paper is to help industry stakeholders understand the current mobile payments landscape, anticipate how mobile payments are likely to change, and appreciate the opportunities that mobile payments, and particularly NFC-enabled mobile contactless payments, present.”
Some of the topics covered in this snapshot of mobile payments include:
- A description of the different types of mobile financial applications in use today
- Discussion of the different mobile payments approaches with implementation examples
- A summary of the merchant, consumer, issuer, and mobile operator requirements for NFC mobile proximity payments and the attendant benefits
- An update on the status of Near-Field Communications (NFC) mobile proximity payments infrastructure
- Evaluation of how different mobile payment approaches fulfill overall market requirements
Payments Council members involved in the development of this white paper included: Accenture; American Express; Apriva; Bank of America; Capgemini; Capital One; Connexem Consulting; CPI Card Group; Datacard Group; DeviceFidelity; Discover Financial Services; Gemalto; Giesecke & Devrient; Heartland Payment Systems; Infineon Technologies; INSIDE Secure; JPMorgan Chase; LTK Engineering Services; MasterCard Worldwide; NACHA; NagraID Security; NXP Semiconductors; Oberthur Technologies; Quadagno & Associates; Thales e-Security; WatchData Technologies USA; VeriFone; Visa Inc.; ViVOtech; and Mike Kutsch; Dale Laszig; and Chandra Srivastava.
INSIDE Contactless, a provider of semiconductor solutions for secure transactions and digital identity, has announced SecuRead, a complete system-in-package (SIP) NFC solution that allows manufacturers of NFC mobile and other devices to integrate all of the contactless, security and application functions required for a broad range of NFC payment, retail, transit, ID and access control applications.
SecuRead integrates INSIDE’s MicroRead NFC controller with a high-performance security controller from Infineon Technologies and a GlobalPlatform-compliant Java Card operating system from Giesecke & Devrient. SecuRead also integrates INSIDE’s Open NFC protocol stack to provide a best-of-breed solution that helps mobile device manufacturers bring rich NFC capabilities to market more quickly.
“Trusted applications like banking and payment demand the highest level of proven security in their hardware and their operating systems, and this is what our secure element brings to the SecuRead SIP solution”
“Unlike other NFC solutions, which must be integrated from multiple hardware and software providers and are less technically robust, SecuRead truly breaks new ground in the NFC market, providing a one-stop-shop, turn-key solution that mobile device makers can use to enable a broad range of NFC applications in their products,” said Loic Hamon, vice president of products and marketing for NFC at INSIDE Contactless.
“SecuRead offers a superior NFC controller, one of the largest capacity and most flexible secure elements on the market and the leading Java Card OS in a single package, with superior software and technical support from a single, global supplier.”
According to Hamon, INSIDE’s SecuRead already has been selected by a leading mobile device manufacturer for use in NFC mobile device products due out in 2011.
“Trusted applications like banking and payment demand the highest level of proven security in their hardware and their operating systems, and this is what our secure element brings to the SecuRead SIP solution,” said Juergen Spaenkuch, director, platform security at Infineon Technologies. “Infineon’s secure element chip dedicated to NFC applications has been certified to the highest proven security certifications and type approvals such as Common Criteria EAL5+ (high) and EMVCo. The chip also offers an optimized interface to the MicroRead NFC controller, thereby enabling INSIDE to create a superior product to meet current and future requirements of the mobile industry.”
SecuRead offers all the functionality of INSIDE’s third-generation MicroRead v3 silicon—plus the secure element and Java Card OS—in a VQFN-32 package, and is pin-for-pin compatible with the standalone MicroRead product. The on-chip Java Card operating system, based on G&D’s Convego® Join 4, includes the implementation of the GlobalPlatform 2.1.1 specifications, supports the full Java Card 3.0.1 API and is compliant with relevant ISO standards as well as EMV for domestic and international mobile payment. The Java Card Operating system supports core AES cryptography for OSPT standards in the transit fare collection market, and a MIFARE-compliant emulation is provided for compatibility for some transit applications.
SecuRead also supports HID iCLASS virtual credentials and is HID Trusted Identity Platform (TIP)-enabled for access control and emerging mobile applications. The secure element features a powerful secure microcontroller with multitasking capability that stores both code and data in a 144KB non-volatile memory, and is Common Criteria EAL5+ (high) certified and EMVCo approved.
“SecuRead represents another productive partnership with INSIDE Contactless to create an innovative solution for the mobile industry,” said Axel Deininger, head of the payments division at G&D. “Our high-performance Java Card solutions, such as the one employed by SecuRead, are tailored to the specific needs of markets with the highest security requirements such as payment, transit, access control and other mobile applications.”
INSIDE’s SecuRead solution is pre-integrated with INSIDE’s Open NFC, a commercial-grade NFC protocol stack that runs on the application or baseband processor to control SecuRead operation. Open NFC version 3.5 software and source code is available at no cost in Android, Windows Mobile, Linux and Java (JSR-257) editions with API documentation on SourceForge.net. INSIDE also offers a comprehensive suite of NFC payment, transit, loyalty, and access control and identity applets to run on SecuRead, including support for HID iCLASS virtual credentials.
“The new SecuRead best-of-breed solution is the fastest path to implementing iCLASS virtual credentials in NFC mobile phones,” said Dr. Tam Hulusi, senior vice president at HID Global. “Through our longstanding partnership with INSIDE, iCLASS support is now a standard feature of SecuRead. For users looking to put iCLASS virtual credentials on mobile phones, this is great news.”
Source: Business Wire