HEADLINE NEWS

Taxis in Major U.S. Cities to Get NFC-Enabled Video Ads

Riders in 5,000 taxicabs in the U.S. would be able to tap on NFC tags on video advertising screens to download apps, brand information, coupons, maps, music and videos, according to technology suppliers that have equipped the taxis for potential advertising campaigns.

Analyst: Banks Have More to Fear from Cloud-Based Technologies Than NFC

Banks have much more to fear from cloud-based mobile payment than from NFC, even if mobile operators control the secure elements that hold the banks’ payment applications.

GSMA Proposes Global Standard for NFC-Enabled Loyalty and Couponing–Using SIM Cards

May 10 2013 (All day)

The GSMA mobile operator trade group is proposing a global standard for how point-of-sale terminals talk to NFC-enabled mobile wallets to enable consumers to redeem coupons and rewards.

Taiwanese Bank Gets Approval for NFC-Enabled Credit Cards; Okay for Other Banks Expected

Taiwanese banking regulators, as expected, have approved the first bank to issue mobile credit cards that could be downloaded over the air to SIM cards.

UK Retailer Marks & Spencer Sees Growing Use of Contactless

Marks & Spencer, one of the UK’s largest retailers, announced today it had rolled out contactless payment to 644 of its UK stores and said 14% of its card transactions under £20 (US$30.97) are contactless.

Identive Reports Growing NFC Business; Blames Flat Sales, Losses, on U.S. Budget Cuts

U.S.-based Identive Group reported growing NFC and smart card reader business, but fell back into the red during for the first quarter, a loss it largely blamed on U.S. federal government budget cuts.

German Bank and Telco Hold Small NFC Trial; Larger Launches Planned in Country This Year

As Germany gears up for NFC, German bank Dortmunder Volksbank along with TelefĂłnica (O2) Germany have launched a small pilot putting a credit application onto SIM cards in Western Germany.

Cashless Technology Company Announces Rollout of Isis SmartTap on Vending Machines

Vending technology company USA Technologies plans to integrate the SmartTap mobile-commerce software into all of the company’s nearly 100,000 NFC-enabled terminals on vending machines nationwide.

Vendor Group: NFC Secure Element Market to Grow by Two-Thirds This Year

Smart card vendor association Eurosmart has substantially increased its estimate for NFC secure element shipments for 2012–by 50% to 150 million units–and forecasts that secure element shipments will grow by another 67% in 2013 to 250 million units.

Gemalto Reveals Some Details of MCX Deal; Vendor Will Earn Fees for Transactions

France-based smart card and security vendor Gemalto will operate the mobile-payment platform for U.S. merchant group MCX, earning a fee for every transaction, in addition to what appears to be a hosting fee it says is worth tens of millions.

Inside Reports NFC Revenue Down Sharply in First Quarter; Some Recovery Expected in Q2

France-based chip supplier Inside Secure today reported a sharp decline in its revenue in the first quarter from its NFC chips, blaming the situation on excess inventories of NFC chips on hand by its main customer BlackBerry.

Australian Supermarket Chain Sees Fast Take-Up of Contactless Payment

More than half of credit card transactions at Australian supermarket chain Coles are contactless, and the merchant hit the milestone just over six months after rolling out contactless terminals across its more than 700 supermarkets.

Isis Phone Announcement is Latest Shot in Brewing Wallet War

The release yesterday by the Isis telco joint venture that six major phone makers “will introduce NFC-enabled mobile devices that implement Isis’ NFC and technology standards,” shouldn’t be taken as an endorsement by the phone makers.

After all, the Isis technology standards follow global standards, from such organizations as GlobalPlatform. Isis told me the standards at issue mainly spell out how banks and other service providers will provision their payment applications on secure elements in the Isis NFC phones.

So if the handset makers, among them Samsung, LG and Research in Motion, support global NFC technology standards, they could easily support the Isis technology specs, as well.

And all six handset makers, which also includes HTC, Motorola Mobility and Sony Ericsson, have already made known their plans to introduce standard NFC phones.

But it appears likely the real point of the Isis announcement was to send a message to the market that the Isis telcos, Verizon Wireless, AT&T and T-Mobile USA, plan to have a broad range of handsets available after they launch their Isis wallets next year.

They want to draw a distinction with the just-launched Google Wallet, which so far has support from only one handset, the Nexus S 4G.

As Isis chief technology officer Scott Mulloy put it in yesterday’s press release, “working together with the device makers and our founding mobile carriers, Isis can provide the consumer choice and scale necessary for widespread adoption of mobile commerce.”

Google and Sprint–the lone carrier partner signed up so far by Google–promise more handsets supporting the wallet. And it’s expected that at least some of those phones will come from Motorola Mobility, which Google is acquiring.

But the Isis telcos, which include the two largest U.S. carriers, Verizon and AT&T, appear to be in the driver’s seat in a budding wallet war with Google. They order the phones and control the distribution channels stateside. And they will be the ones discounting the prices for subscribers on high-end NFC-enabled smartphones in exchange for contracts.

Isis has pledged to be open and welcome other ecosystem players, so it could end up working with Google, as Isis representatives said the joint venture would be open to doing. Google would then have to pay a fee to get its wallet applications onto the secure elements of phones sold by the Isis carriers.

But the Isis operators also could take a more hard-line approach and block or at least make it difficult for Google to access the secure elements of the phones they order.

That is a distinct possibility.

In my discussions with European operators, the mention of the Google Wallet usually brings a frown to their faces. Google is seeking to deploy its wallet overseas, as well. But the European telcos, like the Isis carriers, are planning to introduce their own NFC wallets. And while Google has said it would work with operators to put the Google Wallet applications onto NFC-enabled SIM cards that the telcos issue, I suspect negotiations between Google and telcos are strained.

Google has options if operators were to try to lock it out. It could churn out more of its own Android phones with embedded secure chips that it would own, helped by its Motorola unit, assuming regulators approve the acquisition.

And it could roll out passive contactless stickers–as it’s already said it would do–along with such NFC bridge technologies as microSD cards, supporting the wallet. Google could even try to issue its own SIMs by becoming an MVNO, or mobile virtual network operator, which it is reportedly experimenting with in Spain.

And, of course, just as the Isis operators could try to discourage the Google wallet app from being downloaded to its phones, it seems unlikely that Google’s own NFC wallet phones would also sport an Isis wallet.

At this stage, the brewing wallet war between Isis and Google is more of a PR war, since Isis has not yet launched service, and the Google Wallet remains small–with only payment and no couponing or other Offers available yet.

Isis in July issued a press release announcing it had formed “relationships” with the four major U.S. payment networks, Visa, MasterCard, American Express and Discover Financial Services. Google came back earlier this month, proclaiming it also was “working” with the three other major payment schemes, in addition to its earlier partnership with MasterCard.

As with the Isis announcement Tuesday with the handset makers, the relationships between the payment networks and wallet providers are not close partnerships–though originally, Discover and Isis did work closely together, as have MasterCard and Google for the initial wallet launch.

Essentially, these working relationships with the payment networks mean that the networks will be open to offering the specs for their contactless applications for loading into either of the wallets. That is provided, of course, that the devices running the wallets and their secure elements are certified by the schemes.

Isis’ latest shot in the brewing wallet war–announcing that six of the top 10 handset makers worldwide are planning to introduce NFC phones implementing its specs–seems to have scored.

But unless they agree to work together, the two wallet platform purveyors, Isis and Google, will continue to spar for the hearts and minds of NFC ecosystem players–and one day consumers.

Article comments

 
angelicgoddess Jun 29 2012

Whooa, I think its really an efficient way.
'Like in Japan, people can already use their NFC-enabled smartphones to authorize bank transfers that pay for transit tickets, meals and even snacks from vending machines( wikipedia)'. I think definitely great! I am looking forward for it soon.

Wilma

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