HEADLINE NEWS

OTI to Supply Contactless and NFC Readers for Gasoline Stations in North America

Israel-based contactless and NFC vendor On Track Innovations announced Monday it had received an order for 30,000 readers for point-of-sale terminals at retail gasoline stations in North America.

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 Telefónica (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.

Motorola Gives Google Chance to Control More Secure Elements

Google’s planned acquisition of Motorola’s mobile phone business not only gives the Web giant control of a major handset manufacturer, it also offers Google a way to control the secure chips in more NFC phones.

Google needs some measure of control of the secure chips or secure elements for its Google Wallet. The wallet stores both payment applications and offers, such as coupons, on the secure chips. That is the only way Google can enable consumers to pay and redeem coupons with a single tap of their NFC phones–a feature Google considers vital to the success of the wallet–so much so that it has trademarked the term “SingleTap.”

Controlling the chip is no problem for Google with the Nexus S 4G, the first and so far the only phone model onboard for the wallet launch, expected next month in the United States.

Google owns this phone and ordered it with an embedded secure element from the NFC chip maker, NXP Semiconductors. The Nexus S also is sold through independent retail channels or through mobile operator Sprint, which is a partner with Google on the wallet rollout.

But for other Android phones, Google would have to make deals with handset makers or mobile operators to allow it to manage the wallet applications, according to Osama Bedier, Google’s vice president of payments. He also indicated he saw room for just one wallet per phone.

It’s never been clear, however, how Google will secure the level of control it needs in the other NFC handsets. It will have to do deals with handset makers to gain access to the embedded secure elements if, in fact, the phones carry them, so it can manage the wallet applications. More difficult will be to negotiate with mobile operators, which plan their own mobile wallets, mostly using their SIM cards as secure elements.

Google has said it would be willing to work with mobile operators to put the Google Wallet applications onto these SIMs, perhaps renting space on the cards from the telcos. But the Google Wallet would compete with the operators’ own wallets, and telcos might not be so eager to accommodate Google.

With Motorola, which owns about 11% of the U.S. smartphone market with its Android handsets and about 2% of the global phone market, Google has more options. It could order embedded chips for Motorola phones equipped for NFC and then try to keep the master keys to these chips in the various countries where the phones are sold.

That might not be so easy in the United States, where operators control the phone distribution channels and where such operators as Verizon Wireless is part of the Isis joint venture and wants to control all secure elements in the NFC phones it sells.

Google could continue to control the secure chips in the Motorola Android phones it sells through Sprint, which is not part of Isis and is not apparently planning to support the Isis wallet.

In other countries, where mobile operators don’t have such a tight grip on the phone sales channels, if it gets resistance from telcos, Google could, for example, sell the NFC-enabled Motorola phones through consumer electronics stores and promote its wallet as a selling point. The wallet applications would be stored on embedded chips.

Google plans to introduce its wallet in Europe during the first half of 2012 and has also been talking to banks and others in the NFC ecosystem, including operators, in Asia, NFC Times has learned.

In the United States, where its wallet will debut as early as the first week of September, Google is facing big challenges in getting consumers to tap to pay and redeem offers. There is a relatively sparse infrastructure of contactless point-of-sale terminals and security concerns are sure to surface among American consumers, who are not used to paying with their phones.

And there is still only one phone model supporting the Google Wallet, the Nexus S.

Google has not yet said whether new Android phones made by its planned Motorola handset unit will support NFC. But that is a reasonable assumption.

And with Motorola’s Droid series and other Android phones from the handset maker supporting the wallet, Google stands a greater chance of bringing about its much-touted “new era of commerce.”