NFC Mobile Payments Trial

NFC Mobile Payments Trial
May 7, 2009
Introduction
• Mobile Payments
– Ability to use your mobile phone to purchase goods and
services, primarily done via contactless transactions at enabled
Point-of-Sale (POS) terminals
• Partners
– Bell Mobility, Citi Cards Canada, MasterCard Canada
• Mobile Payments Trial
– We tested the usability and functionality of the mobile payment
application in the mobile phone
• Usability: Is it easy to use?
• Functionality: How well does it work?
The Mobile Payment Concept
•
•
Place credit/debit/prepaid payment application in the secure element
of the mobile device that is Near Field Communications (NFC)enabled.
We’ve effectively put your credit/debit/prepaid cards in your phone for
simple and easy payment.
Provision payment
application into the
secure element of
NFC-enabled mobile
device
“Tap & Go” at
any contactless
POS terminal
Signature for
purchases >$X.00
Goods
purchased!
Near Field Communications
(NFC)
What is NFC?
• A simple technology that transfers small amounts of data via Radio Frequency
Identification (RFID) transponders - similar to technology being used in Canada today
by Esso Speedpass, Shell EasyPay, MasterCard PayPass, etc.
• NFC-enabled wireless devices should be widely available in Canada by the end of 2010
NFC is different from other RFID schemes because. . .
• NFC follows industry-wide standards to allow universal access vs. proprietary RFID payment
schemes that are accessible only at specific stores or gas stations
• NFC protocol is based on ISO 14443, and supported by Visa, MasterCard, and Amex contactless
standards. NFC-enabled wireless devices can act like a plastic contactless payment card
• Can use existing contactless Point-of-Sale (POS) terminals that accept MasterCard PayPass, Visa
PayWave, or Amex Express Pay
• NFC allows two-way communication. NFC-enabled devices can not only transmit but also receive
information from another NFC tag or device
Multiple Uses of NFC
Source: NFC Forum
NFC Architecture
Secure Element
Issuers (Trusted
Third Party)
Secure Element
(U)SIM
GSM
Embedded
Chip
CDMA
Our Mobile Payment Phone
Samsung A920 mobile phone
Participating Merchants
Retailers that were PayPass enabled during the trial:
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–
–
–
–
–
–
–
–
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Petro-Canada
Pioneer gas stations
Loblaws
Zehrs
Real Canadian Superstore
No-Frills
Tim Hortons
Cineplex Odeon theatres
Rabba Fine Foods
Valu-Mart
Fortinos
Independent Grocers
Coke vending machines located at Bell offices
Early Trial Learnings
1. Store employees were not expecting
customers to pay “by telephone”.
2. Card download process is easy enough for
customers to complete on their own.
3. Trial participants liked the convenience of a
combined communication/payment device.
4. The supply and personalization of handsets
requires precise coordination of all parties
involved in the value chain.
5. Customers need to be educated/reassured
about the security of contactless payments
and NFC handsets.
Trial Usage Summary
Avg Trxn Amount – All PayPass Cards : Trial Cards Only
1 : 0.63
Avg Swiped Trxn Amount – All PayPass Cards:
Avg Swiped Trxn Amount – Trial Cards Only:
1
0.74
(68% of all trxns)
(47% of all trxns)
Avg Tapped Trxn Amount – All PayPass Cards:
1
Avg Tapped Trxn Amount – Trial Cards + Handsets: 0.39
(16% of trxns)
(30% of all trxns)
Avg CNP Trxn Amount – All PayPass Cards:
Avg CNP Trxn Amount – Trial Cards Only:
0.639
1
0.64
(16% of all trxns)
(23% of all trxns)
Avg #Trxns/Account – All PayPass Cards:
Avg #Trxns/Account – Trial Cards Only:
1
2.87
On average, trial participants spent less on every kind of transaction…
…but they used their cards 3 times as often.
Average total spend ratio - All PayPass cards : Trial Cards Only = 1 : 1.78
Give your cardholders the option to pay for items with their mobile handsets and
they will spend significantly more on your card.
Other Factors
1.
The NFC trial handsets were not the personal/primary mobile
handsets of the trial participants; if their primary mobile device
had been NFC-enabled, would the participants have been more
likely to carry the NFC device and use it for payments? Most
participants had to carry 2 mobile devices during the trial.
2.
The trial handsets were also loaded with $100 of value on a
second, prepaid MasterCard account; would the participants
have used their Citi MasterCard accounts more often if the “free”
credit card was not available to them?
3.
The trial handsets were prototypes that did not hold their battery
charge as long as most mobile devices; would the participants
have used their handsets more often if the devices were less
likely to have dead batteries?
The NFC trial results may have been even more positive had
these barriers to usage not existed.
Smart Posters
•
Trial participants were given the opportunity
to try two types of smart poster:
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•
Weather: Tapping the NFC handset on these
posters gave the user updates on their local
weather.
Traffic: Tapping the NFC handset on these posters
gave users the latest traffic conditions for highways
in the area.
Smart poster applications were very basic
and needed improvements to the user
interface before they would viable alternatives
to existing weather and traffic update services
available via television, radio or Internet.
Is NFC Here To Stay?
All signs point to “yes”:
•
Contactless public transit fare systems: Canada (Montreal & 407ETR),
France, Portugal, Belgium, Colombia, South Korea, Turkey, Russia, U.S.A,
Japan, Italy, India, Israel, Mexico, Malaysia, Singapore, Taiwan, Norway, U.K.,
Australia…
•
Passports: Malaysia (early 2000), New Zealand (2005), Belgium, The
Netherlands (2005), Norway (2005), Ireland and Japan (2006), Pakistan,
Germany, Portugal, Poland (2006), U.K., Australia and the United States (2007).
•
French Alps: Hands-free access to ski lifts
•
Barcelona: “Bicing” bike sharing system
•
London: School campus access and monitoring
•
San Francisco: Exploratorium Museum gives RFID tag holders exhibit info
•
Worldwide:
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Library book tracking
Racing lap scoring
Animal identification
Inventory management
Human implants (!)
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Barcelona and Rotterdam Nightclubs: Identify VIP guests and drink vouchers
Mexico: Some Attorney General staff implanted for secure data room access
Thank you!
Nino Di Teodoro
VP Emerging Technologies
Citi Cards Canada
Email: nino.diteodoro@citi.com