Store Logistics and Payment with Near Field Communication



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with www.stolpan.com Store Logistics and Payment with Near Field Communication Hagenberg, Hagenberg, March March 20. 2007 20. 2007. Dr. László Kutor, Dr. BMF László Kutor, BMF 19/1

StoLPaN Project Summary 6-th Framework Program (IST) Specific Targeted Research: Innovation Project STREP Coordinator: Motorola Duration: 36 months (from 1st July, 2006) Budget: EUR 8,927,702. Community Contribution: EUR 4,878,309. 19/2

Partners Specific Targeted Research Project with funding from EU 6FP. 19/3

Why StoLPaN? Cope with the challenges of (mobile RFID) NFC More than. million contactless card users in Korea and Japan Pilot applications: South Korea SK Telecom, multiple apps. Netherlands Roda Stadium for ticketing Taipei Subway for mobile payment Malaysia for mobile payment Thailand for mobile payment New York Metro Germany RMV trial for public transport. 19/4

NFC Enabled Handsets and Cards Embedded Nokia 3210, Samsung SCH-X700N, Motorola L7, Nokia 6131 SIM Sagem NFC phone, Gemalto SIM SD card Wireless Dynamics 19/5

NFC Enabled Handset Prognosis 19/6

Basic Categories of NFC Applications 1. Touch and Go code capture: RFID 2. Touch and Confirm authorization needed password, or acceptance 3. Touch and Connect peer to peer data transfer 4. Touch and Explore selection from option 19/7

Transactions Payments, Ticketing, Top-up, Toll-gate, Access control Service Discovery Content distribution, Information access, Smart advertising, Smart media Connectivity Potential Applications for NFC Peer to peer data transfer. Device association, Setup & Configuration 19/8

Implications The convergence of RF technologies in the near future could form the basis for a broad range of new mobile electronic applications such as automatic object and person identification, secure data transfer, and automatic device configuration. The new technology will generate several logistical and legal questions, such as who will handle the electronic identity codes, who-, when-, and how long the products and persons can be traced. The RFID and NFC-based technology will reshape the product logistics and electronic payment system, so preparation is needed for coping with the new situations. This is the purpose of StoLPaN project 19/9

Objectives of StoLPaN 1. Mobile Track: 1. Define a technical environment that supports single platform multi application NFC Service operation 2. Elaborate a logistical and business model that takes into account the interest of the value chain, generates new revenue channels for the mobile network operators and provide a value added service environment for both the service providers and the customers 3. Initiate standards by presenting the results to the relevant industrial, financial, transport and communication organizations 4. Demonstrate the results with a Host application 19/10

Objectives of StoLPaN 2. Retail Track: Design and develop new retail logistical process flow based on mobile NFC technology that individualizes the payment and check-out process to improve convenience of the shopping process and increase store capacity. 19/11

Research Tasks: 1. State of the Art Analysis NFC technology Handset technology Secure element Payment purses Card distribution solutions Retail processes NFC trials 19/12

Payment Ticketing Content Loyalty Research Tasks: 2. Use Case Analysis (e-purse, card payment - several card management-, money transfer, POS operation) (Public transport, event ticketing) ( Smart poster - type use cases, Device pairing, Connectivity) (For large loyalty programs, For smaller merchants) Access (Hotel room booking -can be extended for parking in the hotel, Consume hotel services) Corporate usage (Entrance to the office) 19/13

Main focus of the use-case analysis How can we extend existing contactless card applications, How can we add extra resources to implement new value added services 19/14

Commercial & Technical Framework Mobile Phone Track overview Use Case Analysis Draft host concept 1st wave of Interviews 1 st version of host UML model update Final version of host Standards input New features UML model update 2 nd wave of Interviews 2 nd version of host 19/15

Research Tasks: 3. Host Concept Development J2ME StoLPaN Host application provides value added features and services, utilizing the handset s resources. J2ME application Standardized connection between the J2ME Host and the NFC applications Secure element (chip) NFC e-money Bank card 1. ticket 1. ticket 2. Bank card 2. access code Multiple legacy contactless applications are stored in the secure chip 19/16

Research Tasks: 4. Seamless Mobility Service Development based on EPC and NFC EPC and NFC compatible mobile phones EPC based product NFC Card Emulation information EPC based product authentication (anti-counterfeiting) NFC Card Emulation NFC Card Emulation EPC triggered mobile advertisement NFC based loyalty programs NFC based self check out and mobile payment NFC R&W NFC Peer to Peer 19/17

Summary of StoLPaN Research Issues Solve technical and security issues hide diversity of handsets hide diversity of applications introduce standards Contribute to user related issues test new use cases perform user studies validate existing solutions publish results of usability related research Openness Transparency Solve business issues more simple development more simple apps. distribution more simple apps. mngmnt revenue generation for key stake holders Identify legal issues identify issues that may hinder penetration of the technology or individual services identify issues that deteriorate economics of services Efficiency 19/18

References 1. StoLPaN: A Pan-European Consortium Supported by the European Commission s IST program. StoLPaN examines the potential for bringing together the new kind of local wireless interface, NFC, and mobile communication. http://www.stolpan.com 2. Near Field Communications (NFC) a Wireless Solution for Very Short Range Communications Similar in Many Aspects to RFID http://www.radio-electronics.com/info/wireless/nfc/nfc_overview.php 3. The Convergence of Near Field Communication (NFC), RFID, and Wireless Technologies: Providing an Intuitive Link between Consumer Devices http://www.controleng.com/index.asp?layout=article&articleid= CA6289218&spacedesc=latestNews 4. Near-Field Communications Opens Vision Of E-Commerce http://www.elecdesign.com/articles/index.cfm?ad=1&articleid=7254 5. Nokia, Philips and Sony Establish the Near Field Communication (NFC) Forum http://www.nxp.com/news/content/file_1053.html 6. http://www.gsmworld.com/documents/nfc_services_0207.pdf 19/19