General information about NFC technology

General information about NFC technology What is NFC? How does it work? What is a tap? What is link between NFC technology and Tapit? NFC stands for Near Field Communication. This is a short range wireless technology that transmits data over small distances (maximum 4 cm). The 4 x 4mm chips used in NFC transmission can be found in many smartphones, transport cards or payment devices. Transmission is intuitive, which means that the device with an NFC chip inside can simply be held up to another NFC device or plastic card with an NFC sensor to launch transmission. This placing action is called tapping. Placing an NFC smartphone in front of a scanning device (in this case an NFC payment terminal) is referred to as a tap. This tap launches the payment transaction. The same applies to loyalty cards and opening doors with access cards. Tapit uses NFC technology for communication between the payment terminal and the smartphone to authenticate cards and launch the payment process. The same applies to loyalty cards and opening doors with access cards. What are the different uses for NFC? Which companies offer NFC? NFC applications make it easier to use your smartphone on a daily basis. There are a host of implementation options, and we are just beginning to develop them. 1. Retrieve information easily. Examples: In the St. Petersburg metro you can access information about the various train lines; in the Museum of London you can find additional information about the exhibits. Burberry also uses NFC tags in their garments to provide customers with information about cleaning or combination options with other items of clothing. 2. Validate information: Train, cinema or concert tickets and even ID cards can be uploaded to your smartphone, for instance. So you no longer require a bar or QR code for validation purposes. All you have to do is hold the smartphone up to the scanning device. 3. Data interaction between two devices: Payment processes can be launched by holding your smartphone up to a contactless payment terminal. You can also share photos between two NFC-ready devices at a tap, or set up a WLAN connection. - Samsung, Google, Microsoft, HTC and others use NFC technology in their smartphones. - Sony, Philips, Logitech and others have developed devices such as loudspeaker boxes that can be activated at a tap. - Starbucks, Microsoft and APG use it for advertising posters. - Transport companies in London, Madrid, Hong Kong, Tokyo or Seoul use NFC on entry barriers. - Many retailers in Switzerland like Migros, Coop, McDonalds and Starbucks use NFC payment terminals at points of sale. Stand: 23.06.2014 1/11

General information about Tapit What is Tapit? What is the benefit of Tapit? How much does Tapit cost? Do I have to pay transaction fees? Where can I find information on Tapit? Why is Tapit not a Swisscom brand? Why did Swisscom develop the Tapit platform? Does Swisscom make money with Tapit? Tapit is the Swiss wallet of the future. It is a mobile application, which enables you to order cards (credit, debit, staff, insurance, time or loyalty cards), upload them to your smartphone NFC SIM card and use and manage them securely. You can then use your smartphone to make mobile payment transactions, collect loyalty points or open doors. To begin with, only payment cards are available on Tapit; other cards will follow. It replaces your wallet. All cards are managed electronically in an app on the smartphone. Paying at points of sale is easier and faster customers only have to tap it with their smartphone. The Tapit app is free. The respective card providers determine the cost for the services available on Tapit (e.g. a credit card). Depending on your mobile telephony provider's data rates, data connection charges may be due for any software updates required. There are no additional transaction fees when you use Tapit. Refer to your credit card provider for details of standard fees for using your credit card. Visit www.tapit.ch Tapit is designed as a brand for all mobile telephony providers in Switzerland and is available to various service providers. Tapit can be considered as a neutral eco system that groups together NFC applications for credit, loyalty and access cards and thus simplifies their use. Although initiated by Swisscom, Tapit is positioned as a neutral platform that can be used by any interested partners in Switzerland. Swisscom s strategy is to support its customers in the digital world. Mobile phones are increasingly part of everyday life for people in Switzerland. As an innovation leader in Switzerland, Swisscom wants to keep step with this trend and play an active role in developing this new eco system. Swisscom receives a fee from the various card providers for the Tapit service. Stand: 23.06.2014 2/11

First steps: how to get Tapit What do I need to use Tapit? How do I activate the Tapit service? Do I need a new SIM card? How much does it cost? I have two SIM cards in my mobile phone. Can I use Tapit? I have a Duo Card. Can I use Tapit? I use Mobile ID. Can I continue to use this service? Which cards are supported? Which smartphones are enabled for Tapit? Can Tapit be used on every NFC smartphone? 1. An Android smartphone with NFC function (the smartphone communicates with the scanning terminal using NFC) that is certified by Visa and MasterCard. Go to www.tapit.ch for a list of supported smartphones. 2. One the latest generation NFC SIM cards. It has the required cryptographic capabilities (for security) and more memory capacity. The NFC SIM card is initially available from Swisscom for free via the www.tapit.ch website or the Tapit app. (Orange and Sunrise to follow soon.) 1. Download the Tapit app from the Google Play Store. 2. If your SIM card is not yet NFC-enabled, Swisscom will send you a new NFC SIM card. 3. Once you have received the NFC SIM card by post, please follow the activation instructions. 4. You can now launch the Tapit app and register with your e-mail address (only required once). 5. You can then order mobile credit cards. It is important that you do not switch off your smartphone for several days after ordering, and that you stay connected to your mobile telephony provider s network so that the mobile credit card can be installed on your NFC SIM card via the network. Please note that it may be several days before your mobile credit card is activated after ordering. Yes, you need one of the new latest generation NFC SIM cards with improved cryptographic capabilities (for security) and more memory capacity. The NFC SIM card is initially available from Swisscom for free, via the www.tapit.ch website or the Tapit app. (Orange and Sunrise to follow soon.) No. Dual SIM devices are not currently supported. No. You can t use Tapit with a Duo Card. Yes, but you need to reactivate Mobile ID on the NFC SIM card. As of July 2014 you can integrate credit cards into the Tapit app: credit cards and prepaid cards from Cornèrcard Visa will be available at the start, followed shortly by Aduno/Viseca with MasterCard products. The Coop Supercard will be available in Tapit as of around mid-2015. It will be followed by additional payment, loyalty and access cards. Go to www.tapit.ch to see a current list of all supported NFC-ready Android smartphones. Although NFC-ready, some smartphones are not certified by credit card organisations like MasterCard and Visa. We regret that Tapit cannot be used on non-certified devices. Stand: 23.06.2014 3/11

When will an iphone solution be available? Is Tapit available for Windows devices? Will Apple also opt for NFC technology? We are currently working on an iphone solution and aim to launch it on the market at the end of the year. Tapit is only available for Android smartphones currently. Speculation is rife. If NFC payment terminals become widely established and well used in the USA, we anticipate that Apple may also go for NFC. In the meantime we are working on a solution that will make Tapit available to iphone customers. Application: how do I use Tapit? Which mobile phone providers in Switzerland support Tapit? Does Tapit also work for mobile prepaid customers? Does Tapit still work when my smartphone battery is empty? Does Tapit still work when my SIM card is blocked? Does Tapit also work in flight mode? Does Tapit still work while I m listening to music or making a call? Do I need an Internet connection to use Tapit? Can Tapit be used abroad too? At the moment Swisscom subscribers can use Tapit, as of end of the year also Sunrise and Orange subscribers, since Tapit is a shared platform for all mobile phone providers in Switzerland. From July 2014 both postpaid and prepaid customers will be able to use Swisscom Tapit. If you have activated a payment card as a default card in Tapit, you can launch the payment process for amounts under CHF 40.- (low value payments) even when your smartphone battery is empty. If a payment card is activated as a default card, it will continue to work until the relevant service provider blocks the card. Tapit also works on most NFC-ready smartphones in flight mode. There are some exceptions. Yes. If you are only paying with a card, your smartphone doesn t need to be connected to the Internet, as communication with the terminal is via NFC. However the NFC scanning device on the terminal must be connected to the data network. And you also have to be online to activate a payment card or display your detailed view in Tapit. Tapit can be used for mobile contactless payments wherever there is a contactless payment terminal. This is also the case abroad, for payments under CHF 40.-. However, you can t order credit cards through Tapit abroad. Ordering and activation is only possible in Switzerland. Payment transaction Where can I pay with Tapit? Tapit can be used wherever the acceptance infrastructure is suitably equipped (contactless technology). Payment: Tapit can be used in all stores that accept contactless payments. In Switzerland over 50,000 stores already accept contactless Stand: 23.06.2014 4/11

payments and thus also Tapit. You can use Tapit if the payment terminal has the following logo: Why doesn t Tapit work even though the payment terminal has the contactless logo? Can I pay with Tapit in Swisscom Shops? How do I pay? How can I activate a default card? Does my smartphone have to be unlocked to make a payment? Do I have to launch the Tapit app to make a payment? What happens during the To find examples of additional stores where you can use Tapit to pay, go to: www.kontaktlos.ch/de/wo-einsetzen Migros and Coop have already equipped their payment terminals with contactless technology, as have Swiss kiosks and McDonalds. Some retailers have contactless payment terminals in their stores that are not updated with the necessary software. This can mean that high value payments (over CHF 40) with Visa do not work. However this problem should be resolved over time once all retailers have implemented the right software on the new contactless payment terminals. We are in the process of converting our payment terminals. As soon as you are requested to pay at the checkout, hold up your phone with the back facing the contactless payment logo on the payment terminal. If you have activated a payment card as default card in the Tapit app, amounts less than CHF 40 are immediately deducted. Higher amounts have to be confirmed by entering your credit card PIN for MasterCard or passcode for Visa cards. The Tapit app sends the payment data to the terminal, which confirms that the payment transaction has been launched. PIN entry depends on the relevant card product, and is performed either on the payment terminal in the case of MasterCard or in the Tapit app for Visa cards. Please follow the instructions on the payment terminal. Important: please note that the NFC antenna position on the back of the smartphone varies from one device to the next. It is important that you hold up your smartphone to the contactless logo on the payment terminal where the NFC antenna is located (do not run over the terminal with your device). A mobile credit card can be stored in two different settings in Tapit: - Activation as default card: If a card is activated for this, simply tap the contactless logo on the payment terminal with the back of your smartphone to exchange your credit card data with the terminal - No default card activation: If you have a card in this module, you need to open the Tapit app and activate the card before you can make a payment. If you have activated a default card, you don t have to unlock your smartphone to make a payment. No. The credit card information is transmitted by the smartphone to the payment terminal. It processes the data and performs the payment Stand: 23.06.2014 5/11

payment transaction when I tap the payment terminal with my smartphone? How is my payment data transmitted to the payment terminal? Is my credit card data transmitted to the retailer? transaction. Payment is then accepted or rejected. The sales person activates the payment terminal, which activates the magnetic field known as the contactless interface on the terminal. The terminal is then in active mode and ready to receive a credit card request via NFC. The terminal recognises the credit card information when the smartphone taps the terminal. During this process, the same data is transmitted by the smartphone as a traditional credit card. Once the terminal has recognised the card, the standard credit card security process is launched and the payment transaction is initiated. The same data is transmitted as with a traditional credit card. Without the credit card information, no payment can be made at the retailer's payment terminal. Managing payment cards Which credit cards are supported? Why is my credit card not listed (e.g. UBS)? How can I add a card? How do I know when a new card has been uploaded to my Tapit app? How can I change the default payment card that I d like to use? How can I change the card I use? Does Tapit also work with payment cards issued abroad? Can I use one mobile credit card on several mobile phones? How can I cancel a mobile credit card? The Cornèrcard Visa Silver credit and Cornèrcard Visa Orange prepaid will be available as of July 2014, followed by the Viseca MasterCard Gold Mobile and Viseca MasterCard Silver Mobile in August. Tapit only includes the payment cards of card providers who have an agreement with Swisscom/Tapit. You can add a card at any time in the Tapit app using the + symbol. Simply select a card from the list and follow the instructions. Depending on the card provider and whether you are one of their existing or new customers, card delivery (personalisation) will take a few hours or a few days. Check under My Cards in your Tapit app regularly. You are also notified by your Tapit app. To use a card once for your next payment, click on the card and activate pay with this card. To change a card permanently, select Activate card in the card details. You must first contractually agree whether you can change from a credit to a prepaid payment card with your credit card provider. Depending on the provider, a new payment card is supplied in a matter of hours or at the end of your creditworthiness assessment. At the moment Tapit is only collaborating with credit card providers in Switzerland. The same credit card (same credit card number) must not be used on several smartphones at the same time. Mobile credit cards must be cancelled in writing to the credit card provider, in the same way as a traditional credit card, according to the T&Cs. Stand: 23.06.2014 6/11

When will debit cards be available? Can I continue to take part in my credit card bonus programme? Loyalty cards When will loyalty cards be available in Tapit? When will the Coop Supercard be available in Tapit? Can Migros Cumulus cards also be used in Tapit? Can I pay and collect points at the same time? Can I use my partner s loyalty card in Tapit? How do I upload my points card to Tapit? What is the difference between Tapit and a barcodebased customer card like Manor? Tapit only includes the payment cards of card providers with whom Swisscom/Tapit has concluded a contract. Please refer to the product description of your mobile credit card for this information or contact your credit card provider. Various companies have expressed an interest in offering their store or loyalty cards on Tapit. The first partner for this will be Coop. The Coop Supercard will be available in Tapit as of around mid-2015. Migros is taking part in Swisscom s Tapit scheme and supports Tapit for payment transactions in Migros stores in Switzerland. At Coop you have to tap twice because the payment and collection transactions are separate. You can use their loyalty card according to the card issuer s T&Cs. As one card per household is generally recognised, your partner can store the same loyalty card in Tapit as you. The relevant card provider will provide details on the exact process for their card holders. - Barcode-based apps must be open to perform the application, which is not the case for Tapit - Barcode-based systems generally only work within the respective provider s system (such as Manor). In contrast, Tapit is a neutral eco system. Access cards (corporate badges) How can I use my corporate badge with Tapit? Is security in my office compromised if no-one needs to wear a visible badge any longer? It is up to employers to decide whether a corporate badge should be made available in Tapit. They must provide the infrastructure. Employers decide whether a visible badge must be worn or not. Tapit offers the mobile badge, which includes a photo. Stand: 23.06.2014 7/11

Retailer information How can my customers use Tapit in my store? How can I make my loyalty or access card available on Tapit? Security How is my data protected? What PINs/logins are there? How can I protect my Tapit app? How can protect my credit cards in Tapit? Can I delete all my cards from Tapit? Who is liable for damage? You need an NFC-ready payment terminal. Please get in touch with your payment terminal provider. To integrate your cards into Tapit, please contact support@tapit.ch or a point of contact of your choice (more details at www.tapit.ch) The same security requirements apply to mobile credit cards as for contactless plastic credit cards. Identical security mechanisms are activated during contactless payment transactions with the credit card, but instead of holding up the card up to the terminal, you use your smartphone. The Tapit app has three types of login: 1. To start with, a one-time password is used to activate the application. 2. Tapit pattern: you can create this pattern yourself by linking various triangles with one another to form your personal password. Use of the Tapit pattern is voluntary and helps to protect the Tapit app from unauthorised access. 3. PIN/passcode: your card provider will also issue you with a PIN (MasterCard) or you select a passcode (Visa) to complete payment transactions. It must be entered when paying for purchases of CHF 40 and over. If you forget your PIN/passcode you can get in touch with the card provider. Please note that the PIN/passcode and login data mentioned here have nothing to do with your mobile phone SIM PIN or PUK. You have the option of protecting the Tapit app from unauthorised access by setting a pattern. Mobile credit cards are always secure, you can rest assured of that. You can also deactivate your smartphone s NFC function or choose not activate a default card in the Tapit app. If you haven t activated a default card, you must manually define the mobile credit card that you wish to use for the payment transaction manually every time you make a payment. You can deactivate all mobile credit cards using the Settings option in the app. However, when you uninstall or deactivate an app it does not mean your card contracts are cancelled with the card provider. Please refer to your card provider s T&Cs in this regard. If you no longer wish to use Tapit, please read the FAQ I don t want to use Tapit anymore, what should I do?. Please contact your credit card provider on the subject of damage in relation to your credit card. As credit card holder, you are generally not liable for damage if your credit card has been misused as a result of theft, for instance. You are only liable if you breach your duty of care, for instance if you fail to notify your credit card provider immediately following the theft of your credit card. Stand: 23.06.2014 8/11

What must I do if my mobile phone is stolen, or if I have lost it? What is the secure element? Can malware hack into my Tapit application or gain access to my credit card data? If someone is in the vicinity of my NFC-ready smartphone, can they read sensitive data with a special device? Do the liability conditions and T&Cs of the bank that issues the credit card still apply? Which data does Tapit save? Credit card data is saved on the NFC SIM card. Does the mobile phone provider therefore have access to this data? Can the Tapit app read the credit card data as soon as the customer has entered their personal PIN? What practical steps does Tapit take to prevent data theft? Exactly as you would do for traditional credit cards, you must exercise your duty of care in the event of loss of your mobile credit cards: 1. Notify Swisscom that your device has been stolen 2. Notify your credit card provider of the loss 3. Check your credit card statement The secure element is a specially protected area on the NFC SIM card. It is comparable to the chip on your credit card and contains the security features of your credit card. It requires a special SIM card, which is why new customers have to change their existing SIM cards. The Visa or MasterCard applets used by Tapit are certified and approved by these credit card providers. The security therefore complies with the industry guidelines of the credit card companies. In principle, the mobile credit card is like a contactless plastic card. If you hold up a scanner to a contactless credit card or to the smartphone, certain information can be read (e.g. card number or expiry date). However, on your smartphone you can deactivate the NFC function, which you can't do with a credit card. Yes, the provider s specific guidelines for mobile credit cards apply. Neither Tapit nor the telecommunication provider can view your credit card/payment information. This information is saved in encrypted form on your NFC SIM and is only saved by your payment institutions. Neither the telecommunication provider nor Tapit have access to payment data. The only data saved by the telecommunication provider, aside from normal customer data, is the information about which SIM card the customer is using. The only data saved by Tapit is the information about which service the customer is using. The credit card data is saved in encrypted form on the NFC SIM card, however the mobile phone provider/tapit cannot access it. In addition, Swisscom/Tapit contractually pledge to customers that they will not obtain access to payment-relevant data. It can in principle. However, this function depends on the individual credit card product. Swisscom/Tapit use internal control and security mechanisms to ensure that this data cannot be misused. This data is only displayed and not saved by the app. Furthermore, MasterCard and Visa certify the Tapit app. In addition, Swisscom/Tapit have contractually pledged to customers that they will not obtain access to payment-relevant data. Like your telecommunication company, Tapit has no access to customers credit card and payment details. The entire payment transaction complies with Visa and MasterCard specifications and standards; it has passed current Swisscom security audits and complies with the latter s standards and best practice regulations. Stand: 23.06.2014 9/11

What customer data is saved, and where is it saved? If the transaction history can be displayed in the Tapit app, is the customer's transaction data available? Does all data remain in Switzerland? Does Tapit use the Swisscom cloud? What data is scanned during a payment transaction? Support Where can I get help? What are the most common reasons for not being able to pay with Tapit? Can I reverse a Tapit payment transaction made in error? What happens if my smartphone is stolen or I lose it? I have recovered my Credit card information is saved in encrypted form on the NFC SIM card. - Credit card data: encrypted on the NFC SIM card and at the card provider - Subscription data: encrypted on the NFC SIM card and at the telecommunication provider - Tapit data: with Tapit. (This is the registration data and the services a customer is using at any time, so that the latter can be displayed in the Tapit app). The last 10 NFC transactions are saved on the NFC SIM card and, depending on the card provider, can be displayed on entering the PIN. Swisscom/Tapit have contractually pledged to customers that they will not obtain access to payment-relevant data. All Swisscom/Tapit data remains in Switzerland. The location of the service provider s systems is a matter of their discretion. The Tapit servers are currently operated by Swisscom, but it does not use the Swisscom cloud. All the data on the front of your traditional credit card is scanned. During a payment transaction the same data is scanned from a mobile credit card as from a traditional credit card. - For questions about your smartphone and your SIM card, please contact Swisscom: 0800 800 800 - For questions about your cards, please contact your card provider: Viseca: +41 58 958 84 00; Cornèr : +41 (0)844 00 41 41 - For general and technical questions about Tapit you can complete the support form on the Tapit website: www.tapit.ch/xxx. - Creditworthiness: do you have enough credit on your (prepaid) payment card? Has your credit card been blocked? - Default card: was a default card activated? - NFC: is NFC activated on your phone? - Tapping: did you hold up your device to the payment terminal correctly? (antenna-to-antenna) - Terminal: is the terminal NFC-ready and activated? If you have checked all the points listed here and still encounter problems, please contact our support via the website www.tapit.ch/de/support/questions-answers Yes, the checkout personnel can reverse the transaction, similarly to a payment made in error with a traditional credit card. If your smartphone is lost or stolen, you must notify your mobile phone provider (e.g. Swisscom 0800 800 800). You must also notify your credit card provider as required in their Terms and Conditions of Business. Contact Swisscom and your credit card provider. Stand: 23.06.2014 10/11

stolen/lost phone. How do I carry on using Tapit? How secure are my mobile cards? Is my privacy protected when shopping? I don t want to use Tapit anymore. What should I do? Can I automatically cancel my cards when I uninstall Tapit? I m changing smartphone. What do I need to do? I'm changing my SIM cards. What do I need to do? I m changing my telephone number (not my provider). What do I need to do? I m changing my mobile phone provider. What do I need to do? Can I import vouchers to Tapit? What is the e-mail address used for that I have to specify initially when I register? Your card details are saved in highly encrypted form on the NFC SIM card, in compliance with certified security standards. The Visa or MasterCard applets used by Tapit are certified and approved by these credit card providers. The security therefore complies with the industry guidelines of the credit card companies. In the Tapit app, you can actually switch your cards ON or OFF. You therefore have full control over which card is active. You can also deactivate your smartphone s NFC function at any time. Neither the Tapit app nor your mobile phone provider know where and what you purchase with Tapit. Tapit does not pass on your card data to card or mobile phone partners. Please also read the Tapit app terms of use on this subject. Please proceed as follows: 1. Deactivate all cards in the Tapit app (Menu -> Settings -> Deactivate all cards ) 2. Cancel your mobile credit cards according to your card provider s T&Cs 3. Uninstall Tapit No, you must contact your service provider to cancel. Insert the NFC SIM card into the new smartphone and download the Tapit app again from the Play Store. All cards are immediately available again because they are saved on your SIM. Once you ve activated your new NFC SIM card you will receive a new one-time password so you can log into the Tapit app again (a new registration is not necessary). All your cards have to be transferred to the new SIM. You don t have to take any special action. Your Tapit app and all the cards installed in Tapit will continue to be available after changing your telephone number. If you change today from Swisscom to another mobile phone provider, you cannot continue to use your mobile credit card as the other mobile phone provider will not yet be operative. In the future you will receive a new NFC SIM card from your new mobile phone provider and your cards will be automatically re-personalised once you have downloaded the Tapit app again. This applies only to Sunrise, Orange or Swisscom customers (not to MVNOs i.e. providers without a network of their own). Functions like this will be possible in the future. It is only used for registration so we can send you a password. Stand: 23.06.2014 11/11